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Public Administration News  
Vietnam Automates State Agency Salary Payments
Source: futuregov.asia
Source Date: Friday, June 15, 2012
Focus: Electronic and Mobile Government, Institution and HR Management, Internet Governance
Country: Viet Nam
Created: Jun 19, 2012

Vietnam’s Prime Minister has approved of a project on non-cash payment promotion in Vietnam for the 2011-2015 period, aiming to reduce cash-payment proportion to less than 11 percent and increase the number of bank account holders to 35-40 per cent of the population by 2015.

As part of this project, 65 per cent of state agencies are expected to pay salary via bank account by the end of 2012, and 80 per cent by 2015.

Bui Quang Tien, Head of Payment department under State Bank of Vietnam said at that 54 per cent of government officials are now paid through their bank accounts. The government plans to get 95 per cent of public sector officers eventually having their salary automatically transferred to their bank accounts.

Tien stressed that the potential of the card payment market is tremendous and all banks are aware of this, but it requires much of their time and effort with State support to develop these channels. He proposed that Vietnam needs to expand, develop and upgrade Point of Sale( POS) infrastructure quality to support card payment, particularly compatibility and security.
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