From Dong to Digital: Vietnam’s Bold Leap into a Cashless Future

Vietnam is witnessing a dramatic rise in the use of cashless payments, with new programs and regulation announced today bringing the country closer to a complete digital economy.

 

Major Developments

Highest Contactless Payment Growth Rate Record: Vietnam boasted a 92% compound annual growth rate  in contactless transaction volume between Q4 2022 to Q4 2024, thanks to advanced payment technology and outstanding collaboration among banks, fintechs, and merchants.

 

Mastercard Strategic Initiatives: Mastercard and VPBank launched the "Pay by Account" solution, enabling secure digital payment from bank accounts through mobile apps. The company also launched contactless payment on the Ho Chi Minh City Metro Line 1 and launched Vietnam's first co-badged card with NAPAS and major banks.

 

Visa Innovation and Partnerships: Visa introduced "Click to Pay" for easy online buying, enhanced e-wallet integration, and special promotions to drive cashless adoption. Visa is also driving government digitalization and payment protection through cutting-edge fraud detection and regulatory collaboration.

 

Regulatory Overhaul for Online Platforms: The Vietnamese government issued Decree No. 117/2025/ND-CP requiring tax withholding on all transactions on e-commerce and digital platforms. The digital platform operators are required to withhold and pay VAT and personal income tax on behalf of the vendors, and the new regulations are applicable from July 1, 2025.

 

Government Initiative: The Ministry of Finance and the State Bank of Vietnam are speeding up initiatives to enhance the regulatory framework, enhance payment security, and increase cashless services in rural and remote areas to promote greater financial inclusion.

 

Public Participation: Ho Chi Minh City's "Cashless Day 2025" fair encouraged the latest payment technology, with activities and promotions encouraging consumers and merchants to pay cashless.

 

The Bottom Line

Vietnam's accelerated digitalization is forcing Southeast Asia to up its game, as robust public-private collaborations, policy reforms, and emerging payment technologies are turning cashless payments into the new norm. 

 

Source: VietnamPlus, Global VAT Compliance, Laotian Times, The Star Malaysia