Payment systems of Vietnam
Chapter 8: Payment Systems of Vietnam
Vietnam’s financial and payment systems are the least developed of all those of the countries covered in this survey, because Vietnam did not initiate full-scale financial reforms until the middle of the 1990s. Information on its economic and financial systems is very limited in Japan, and so this survey has focused not only technical aspects of Vietnam’s payment systems, but also on the past and future developments of its financial system. It must be understood that the Vietnamese are apt to mistrust banking systems, because of their hard experiences of wars and financial crunches. Vietnam’s banking system has been underdeveloped, and cash has been the most commonly used payment instrument. US dollars are widely accepted for payments of goods and services, to the extent that they are estimated to make up nearly 30 percent of the money supply in Vietnam.
As described above, Vietnam began its financial reforms in the mid 1990s, and its electronic payment systems have recently made a rapid progress. Banks have begun installing
ATMs and issuing credit cards, and these are gradually becoming widespread. A stock exchange was established in 2000, although transactions are still limited in size and amount.
Insurance companies have recently begun making long-term investments, and the introduction of investment trusts are now being studied by the authorities. Rapid changes are taking place in Vietnam’s financial sector.
Research for this survey included interviews with financial sources in Vietnam, concerning the development of financial systems and reforms. Interviewees’ explanations were sometimes inconsistent with each other, in reflection of rapid changes. Vietnam’s financial statistics have been underdeveloped in comparison with those in the leading ASEAN countries, and many materials and data remain undisclosed; improvement is also needed in their publication.
1. History of Vietnam’s Financial System
(1)
Vietnam’s financial and payment systems are the least developed of all those of the countries covered in this survey, because Vietnam did not initiate full-scale financial reforms until the middle of the 1990s. Information on its economic and financial systems is very limited in Japan, and so this survey has focused not only technical aspects of Vietnam’s payment systems, but also on the past and future developments of its financial system. It must be understood that the Vietnamese are apt to mistrust banking systems, because of their hard experiences of wars and financial crunches. Vietnam’s banking system has been underdeveloped, and cash has been the most commonly used payment instrument. US dollars are widely accepted for payments of goods and services, to the extent that they are estimated to make up nearly 30 percent of the money supply in Vietnam.
As described above, Vietnam began its financial reforms in the mid 1990s, and its electronic payment systems have recently made a rapid progress. Banks have begun installing
ATMs and issuing credit cards, and these are gradually becoming widespread. A stock exchange was established in 2000, although transactions are still limited in size and amount.
Insurance companies have recently begun making long-term investments, and the introduction of investment trusts are now being studied by the authorities. Rapid changes are taking place in Vietnam’s financial sector.
Research for this survey included interviews with financial sources in Vietnam, concerning the development of financial systems and reforms. Interviewees’ explanations were sometimes inconsistent with each other, in reflection of rapid changes. Vietnam’s financial statistics have been underdeveloped in comparison with those in the leading ASEAN countries, and many materials and data remain undisclosed; improvement is also needed in their publication.
1. History of Vietnam’s Financial System
(1)