Mobile money approved for pilot scheme in Vietnam

tHAo mInH

On 9 March 2021, the Prime Minister promulgated Decision 316/QD-TTg approving the pilot implementation of telecommunications accounts for making payments for small value goods and services (mobile money). The decision takes effect from the signing date.

The pilot implementation of mobile money aims to contribute to the development of non-cash payments, and enhance access to and use of financial services, especially in rural, mountainous, remote, border and island areas.

According to the decision, enterprises holding a license to provide electronic wallet payment intermediary services as well as one to establish a public terrestrial wireless telecommunications network - or a subsidiary allowed by the parent company to do so - are permitted to use the telecommunications infrastructure, networks and data.

Individual customers who register and use the mobile money service must provide an identification or citizen identity card or valid passport with information that matches their mobile subscriber registration information and is identified and verified by the mobile money providers in accordance with the government's regulations on mobile subscriber registration. The mobile subscriber number must be activated and used continuously for at least three consecutive months up to the time of registration of the mobile money service.

Each customer is permitted to open only one mobile money account at each mobile money service provider. The implementation will be piloted within two years from the time the first enterprise to be involved receives approval to implement the mobile money service.

The decision states that the transaction limit must not exceed VND10 million (USD435) per month per mobile money account for total transactions including money withdrawal, transfer and payment.

Data from the General Statistics Office of Vietnam showed that by the end of 2019, Vietnam had 129.5 million phone subscribers, of which the number of 3G and 4G mobile phone subscribers was more than 61.3 million. Mobile phone networks cover most localities nationwide. In 2019 with 43.7 million smartphone users (accounting for 45 percent of the population), Vietnam is at a regional average, higher than India, the Philippines, Indonesia and Thailand.

Mobile banking transactions in Vietnam are expected to increase by 400 percent by 2025, according to the Fintech and Digital Banking Asia Pacific report co-released by Backbase and IDC in May 2020.