LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 11/2021)

 1. LEGAL DOCUMENTS ARE ISSUED IN 10/2021

1.1. Decision No. 1813/QĐ-TTg on approval of the Project for development of non-cash payment in Vietnam period of 2021 - 2025

v  Name of legal document: Decision No. 1813/QĐ-TTg issued on 28/10/2021 by the Prime Minister on approval of the Project for development of non-cash payment in Vietnam period of 2021 - 2025 (referred to as the “Decision No. 1813/QĐ-TTg”).

v  Effective date: 28/10/2021.

Some contents should be noted:

·         Firstly, regulating on specific objectives by the end of 2025.

Specifically, Section 2 Part II Decision No. 1813/QĐ-TTg stipulates: “II. OBJECTIVES

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2. Specific objectives by the end of 2025

a) Non-cash payment value is 25 times higher than GDP.

b) Non-cash payment in e-commerce reaches 50%.

c) From 80% of people aged 15 years and over have transaction accounts at authorized banks or other organizations.

d) Increase people's access to payment services; increase the number of points accepting non-cash payments to over 450,000 points.

dd) Objectives of growth in the use of non-cash payment means and services:

- The average growth rate in the number and value of non-cash payment transactions is 20 - 25%/year;

- The average growth rate in the number of transactions via the mobile phone channel reaches 50 - 80%/year and the transaction value reaches 80 - 100%/year;

- The average growth rate of the number and value of transactions via the Internet channel reaches 35-40%/year;

* The rate of individuals and organizations using non-cash payment means through electronic payment channels reaches 40%.

e) Objectives of non-cash payment for public services:

- From 90 to 100% of educational institutions in urban areas accept payment of tuition fees by non-cash payment method; from 90 - 100% of universities and colleges in urban areas deploy online tuition payment on the National Public Service Portal;

- 60% of medical examination and treatment establishments in urban areas accept payment for medical services by non-cash payment methods;

- 60% of people receiving pensions, social insurance allowances and unemployment allowances in urban areas are paid through non-cash payment methods.”

·         Secondly, regulating on solutions on completing the legal corridor and mechanisms, policies to develop non-cash payments in the period of 2021-2025.

Specifically, Section 1 Part 3 Decision No. 1813/QĐ-TTg stipulates: “III. NON-CASH PAYMENT DEVELOPMENT SOLUTIONS FOR PERIOD OF 2021 - 2025

1. Complete the legal corridor and mechanisms, policies

a) Review and propose amendments, supplements to a number of provisions related to payment in current legal documents (such as the Law on the State Bank of Vietnam, the Law on Credit Institutions, the Law on Prevention and Combating of Money Laundering and other relevant Law documents).

b) Research and develop Project of Law on Payment Systems (according to the tasks assigned in the Prime Minister's Decision No. 986/QD-TTg dated August 8, 2018 ON APPROVING DEVELOPMENT STRATEGY OF VIETNAM BANKING SECTOR BY 2025 AND VISION TO 2030) to ensure the management and supervision authority of the State Bank of Vietnam over payment systems, services and payment means, in accordance with practical requirements, development trends and international practices.

c) Complete the development and promulgation of a Decree replacing Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payments and developing guiding documents.

d) Review, study and propose amendments, supplements and replacement of Decree No. 222/2013/ND-CP dated December 31, 2013 on cash payment in order to strengthen the management of cash payment activities especially for transactions of buying and selling properties of great value in accordance with the provisions of the Law on Housing, the Law on Real Estate Business, the Law on Prevention and Combat of Money Laundering, and the Law on Prevention and Combat of Corruption.

dd) Finalize and promulgate regulations on electronic identification and authentication; promulgate regulations on the protection of personal data; promulgate regulations and guidelines to allow relevant organizations to connect and exploit information from the National Population Database in accordance with laws to serve information authentication and identifying customers by electronic means.

e) Complete the development and promulgate of a controlled trial mechanism for financial technology (Fintech) activities in the banking sector in order to create a legal framework, meet management requirements, and promote innovation and creativity. create and deploy new cooperation and business models in payment service provision.

g) Review and propose amendments and supplements to legal regulations on electronic transactions, network security, assurance of data safety and security, and user protection, etc. in order to support and facilitate benefits the application of technology and innovation and creativity, ensuring security and safety in payment activities.

h) Research and propose mechanisms and policies on national digital currency.

i) Develop solutions to continue to encourage non-cash payments to contribute to tax management.

k) Implement appropriate policies on non-cash payment service fees, creating favorable conditions for users to access non-cash payment services at a reasonable cost.”