Electronic payments contribute $880m to Vietnam’s GDP

07-Jun-2016 Intellasia | Tin Tuc | 6:00 AM Print This Post

According to analysis by the credit rating agency Moody’s, the increased use of electronic payment (e-payment) such as credit cards, debit cards and prepaid cards contributed 880 million US dollars to the Gross Domestic Product (GDP) of Vietnam in the period from 2011 to 2015.

Vietnam is ranked the second in the region (according to Moody’s survey) with GP growth index thanks to the growth of e-payment of 0.14 percent, just behind Thailand (0.19 percent) and above Singapore (0.1 percent).

In parallel, economists of Moody’s estimated that during the above period, the growth of frequency of card use created about 75,000 jobs a year in Vietnam. The study also showed that governments of countries will benefit when payment method is electronicalised and the business environment will become more stable and open. In addition, e-payment helps minimise the ability to form the “underground economy” – the economy of unofficial activities, of which transactions are mainly based on cash. Therefore, e-payment helps the tax profit of governments increase at the same time cut the costs of cash storage, ensure payment and create a better financial system for consumers.

Moody’s report titled “Impact of Electronic Payments on economic growth” gave an overview and details on the impacts of e-payment to over 70 economies within the last four years. Overall, the increase of e-payment created an average of 2.6 million jobs per year and contributed 298 billion US dollars into the value of GDP, while helping increase the spending for goods and services of families by 0.18 percent per year.

Among 70 countries in the survey, Moody’s found that a one percent growth in e-payment can bring added value of approximately 104 billion US dollars to the consumption of goods and services each year. Without further consideration of other factors, the high ratio of card use can help increase GDP growth rate by an average of 0.4 percent per year.

Talking to reporter in the morning of June 2nd, Sean Preston, director of Visa in Vietnam, Laos and Cambodia said that the findings of Moody have once again confirmed the benefits that e-payments bring to the economies of countries around the world, particularly Vietnam. Therefore, Visa believes that the increased use of debit and credit cards will facilitate the development of e-commerce as well as other services. Accordingly, Visa committed to continue supporting the expansion of e-payment network throughout Vietnam.

Until the present time, the total transaction volume of Visa in Vietnam has grown by 34 percent, the Point of Sale (POS) network has also been expanded by 38 percent in the number of POS across the country. In addition, online shopping through Visa cards has increased significantly by 47 percent, while the frequency of internet use in Vietnam is estimated to have surpassed more than 45 million users.

Preston shared that with the improvement in technology, Visa expected to disseminate widely the benefits of e-payment to consumers in Vietnam, bringing easy and safe payment methods to people in order to help promote economic development at the same time creating a solid financial platform to stimulate consumption.

 


Category: Economy, Vietnam

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