Ambition pre-determines many things – direction, effort, and outcome – which, for Vietnam, has manifested in the form of new regulatory frameworks, technological advancements, and public-private initiatives. Their banks, in particular, have been making headlines as of late.
That ambition has one aim: a cashless society.
Over the past decade, Vietnamese banks have actively been pushing for digital transformation, driven by both legal and regulatory frameworks and internal efforts to modernise the nation’s economy and keep pace with the demands of an automated, technology-driven future.
While the government shows full support, with the State Bank of Vietnam (SBV) issuing updated policies and innovative programs, the road ahead is a complex and challenging one.
It suffices well to say that ambition comes at a cost and, often, with too many setbacks.
What is ‘Cashless Vietnam’?
By definition, it would mean that an economy functions entirely through digital means, where financial transactions are conducted online via Digital payment apps, QR code payments, Debit/credit cards, Internet banking, NFC payments, and other fintech means.
This brings with it several benefits — including financial inclusion, improved transaction efficiency, and greater transparency. It directly addresses Vietnam’s key challenge of serving a large unbanked rural population by expanding access to mobile banking and fintech services. In turn, this could significantly boost economic activity by enabling the participation of millions more people in the formal financial system.
But a cashless economy also means greater dependence on digital infrastructure – which, in Vietnam, remains uneven across regions. Internet connectivity, device access, and digital literacy are still barriers, especially in remote and low-income communities.
It also means exclusion is at real risk. Those without smartphones, bank accounts, or digital literacy – particularly in rural or elderly populations – risk being left behind as systems move increasingly online.
There are several risks at stake – some minor, some too systemic to ignore – which demand utmost caution when accelerating towards a cashless future. For Vietnam, a cashless economy may promise efficiency and growth, but without strategic planning, it could instead deepen divides. The challenge is therefore to not just go digital, but to do so responsibly, equitably, and sustainably.
Vietnam’s current approach
Vietnam is making remarkable strides. In the first half of 2025, the number of cashless transactions exceeded 12 billion – more than all of 2023 – which showcases a steep growth curve. The total value of non‑cash payments is estimated at ~ VND 295.2 quadrillion, which is about US$11.3 trillion, and nearly 26 times the country’s GDP.
This showcases both the scale and speed of Vietnam’s digital transition – not just in adoption rates, but in how deeply non-cash payments are integrating themselves into everyday economic activity. From consumer spending and government services to B2B transactions; digital payments are very evidently becoming the nation’s default.
To name a few of the most recent reforms, Vietnam’s national payment switching infrastructure, NAPAS, played a central role in enabling interbank transfers, QR payments, and connectivity among banks and payment intermediaries. VietQR, launched in 2021, was an ‘open standard’ QR code accepted across many banks, designed to lower barriers for merchants and users alike.
Another recent fintech innovation was the introduction of biometric authentication for digital banking, now being rolled out across several major banks. This move, backed by the State Bank of Vietnam, aims to strengthen security, reduce fraud, and simplify onboarding for users – especially those new to formal financial systems.
It is all to say, that cashless economies can reduce frictions in trade, remittances, and capital mobility – especially in Southeast Asia. A more interconnected ASEAN payments framework can help reduce costs of remittances and small cross‑border transactions.
Vietnam vs. Its Neighbours: China, India, and Singapore
It can be helpful to situate Vietnam’s trajectory against other regional neighbours. Each offers lessons, advantages, and cautionary advice.
China
In China, Cash usage is marginal in many urban areas due to the dominance of Alipay and WeChat Pay. QR code payments, “face pay” (facial recognition), and mini‑program ecosystems are deeply embedded as well.
China’s scale and regulatory model also allow sweeping data integration but raise concerns over surveillance and data governance.
Very much like China, Vietnam aspires to scale. But replicating China’s level of integration may demand strong state coordination, data sharing, and raising sensitive issues about privacy, centralization, and dominance by a few private platforms – a feat that demands a long way ahead.
India
The Unified Payments Interface (UPI) in India is a powerful model – instant interbank transfers via mobile, open APIs, and seamless QR payments. UPI’s success is driven by interoperability, minimal cost, and wide merchant acceptance.
Similar to Vietnam, India also has to grapple with large unbanked populations, rural connectivity, digital literacy challenges, and trust gaps.
Vietnam can therefore emulate the UPI open API, standardized QR infrastructure, low merchant onboarding cost, and government-private sector collaboration without a disruptive demonetization shock.
Singapore
Singapore leans more on cards, contactless NFCs, and mobile wallets in a mature, high‑income environment; benefiting from high banking penetration, excellent digital infrastructure, and strong regulation.
Singapore therefore shows that a highly digital payments infrastructure can operate with high trust, strong consumer protection, and cross-border connectivity.
What’s Next?
Vietnam’s push towards a cashless future is ambitious, promising, and consequential. While the technology, regulatory, and financial building blocks are advancing fast, the success will hinge on two things: equitable design and trust.
A truly inclusive, sustainable cashless society is not one that forces out cash overnight, but one that offers digital as the default, with safe fallback, and brings people along in the journey. For culture, economy, and everyday life, Vietnam’s experiment could illuminate a path for many other emerging economies in Southeast Asia.
There will be much more discussed on the same, at the World Financial Innovation Series (WFIS) being held next year, at Vietnam. To be part of the conversation shaping the future of finance in the region – explore the agenda and register your interest at the official WFIS website.