MINISTRY OF EDUCATION AND TRAINING
THUONGMAI UNIVERSITY
-------------------------

NGUYEN THI NGOC DIEM

STATE MANAGEMENT OF NON-CASH PAYMENT
SERVICES IN DOMESTIC PAYMENT OF
VIETNAM’S COMMERCIAL BANKS
Major

: Economic Management

Code

: 62.34.04.10

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

Hanoi, in 2018


The Thesis was completed at the Vietnam University of Commerce

Supervisor:

1. Assoc. Prof. Dr. NGUYEN THI PHUONG LIEN
2. Dr. NGUYEN THI HAI HA

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Reviewer 2: ......................................................................................
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The Thesis will be protected before the Thesis Evaluation Council in the University level at

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At…... hour.…date…..month…..year ………..

The Thesis can be found at:
National Library
Library of Vietnam University of Commerce


LISTS OF PUBLISHED WORKS
1.

Nguyen Tran Hung and Nguyen Thi Ngoc Diem (2016),
“Develop the payment of electronics invoices in Vietnam”.

2.

Journal of Trade Science, no. 94 (2016), 3-12.
Nguyen Thi Ngoc Diem (2016), “State management of non-cash
payment services in Vietnam in the process of international
economic integration”. International Scientific Conference
“Vietnam's

economic


development

in

the

process

of

international integration” Vietnam University of Commerce, in
3.

2016, 962 – 974.
Nguyen Thi Ngoc

Diem

(2017),

“Current

status

of

infrastructure for non-cash payment of Vietnam’s commercial
banks”. Journal of Industry and Trade, no. 7 in June (2017),
402-307.


INTRODUCTION
1. The urgency of thetheme


Payment of commercial business in the socio-economy in general,
through the system of commercial banks in particular, has been proving its
indispensable role in socio-economic activities.The modern payment
system of the economy quickly and fully reflects the socio-economic
activities which are represented by cash flows from operations arising
until the ending of the settlement of each transaction. The bottlenecks at
any stage of the payment process will lead to delays, adversely affect
operations, even lead to systemic insolvency and it threatens to destabilize
the economy - society. Moreover, the damage, loss in commercial business
payment is not small.Therefore, the state management of commercial
business payment in the domestic payment of commercial banks is more
important than ever.
However, state management of this service is facing many
difficulties due to the rapid development of information technology
and the link between commercial banks on the technology platform.
The rapid development of technology can lead to the outbreak of
commercial business payment services, it creates conditions for
customers to use new payment services with higher utility but can also
cause risks to payment systems in commercial banks in general and
risks to customers in particular.
At present, there are not many in-depth studies on state management
of commercial business payment services in the domestic payment of
Vietnam’s commercial banks. In that context, the Thesis is addressed with
the theme "State management of non-cash payment services in domestic
payment of commercial banks in Vietnam" it contributes to resolving the

limitations and problems in state management of commercial business
payment services in domestic payment of Vietnam’s commercial banks in
order to boost payments in the social economy in Vietnam efficiently,
contribute to stable currency circulation.
2. Purposes and tasks
Study's purposes:
May propose solutions and recomendations based on scientific and
practical basis in order to improve the state management of commercial
business payment services of Vietnam’s commercial banks.
Tasks:
To achieve the purposes, the thesis sets out specific tasks:


- Systematize a number of basic theoretical issues related to
commercial business payment services and state management of
commercial business payment services in domestic payment at
commercial banks.
- Study the experiences of developed and developing countries, on
that basis we can draw the necessary lessons for Vietnam in providing
services and managing the development of commercial business
payment services.
- Analyze and assess the state management situation of
commercial business payment services in the context of renovation in
Vietnam.
- Propose orientations and list solutions to improve the state
management of commercial business payment services in Vietnam.
3. Objects and scope of the study
Objects of the study
The theoretical and practical basis of the state management of
commercial business payment services in domestic payment of

commercial banks.
Scope of the study
Content: The Thesis focuses on the state management of the State
Bank of Vietnam for commercial business payment services in
domestic payment of Vietnam’s commercial banks at the macro level.
Managed object: The Thesis focuses on management activities of
the main objects - central bank, state bank.
Space: The Thesis focuses on the state management of commercial
business payment services of Vietnam’s commercial banks.
Duration: The Thesis will study the state management of
commercial business payment services of Vietnam’s commercial banks
in the period of 2012 - 2017; The solutions and recommendations will
be applied for the period from now to 2020 with a vision to 2030.
4. New contributions of the thesis
New contributions in academic and theoretical issues:
- Clarify the contents of commercial business payment services of
commercial banks;
- Analyze and comment the state management contents of the Central
bank/State Bank for the domestic payment activities of commercial banks


according to the management functions and contents of service activities,
establish 4 evaluation criteria and three groups of factors affecting the
state management of commercial business payment services;
- Analyze, summarize and draw 4 lessons for state management of
commercial business payment services of Vietnam’s commercial banks.
New contributions in practice:
- Evaluate the status of services and conditions for developing
commercial business payment services in domestic payment of
Vietnam’s commercial banks. The conditions of infrastructure and

technology have been improved and upgraded. However, some
conditions on the payment system, intermediary payment, some legal
documents have not fully and promptly responded to the development
of commercial business payment services in domestic payment through
commercial banks in Vietnam.
- Analyze the state management situation of payment activities in
domestic payment of Vietnam's commercial banks in the period of
2012-2017 in the following aspects: promulgating mechanisms and
policies; developing the management apparatus; using the tools of
inspection and supervision for payment activities through commercial
banks. From that point, we can evaluate the achievements, limitations
and causes of the state management over payment activities in the
domestic payment through Vietnam's commercial banks.
The main limitation in state management of commercial business
payment services in domestic payment through Vietnam's commercial
banks: The effectiveness of management activities is low and
efficiency is not adequate; it is not suitable with the practice of
developing commercial business payment services, no guarantee of
uniformity and stability.
The main solutions that the thesis aims to are:
- Perfect the legal environment for commercial business payment
services in domestic payment of Vietnam's commercial banks.
- Perfect and improve the quality of activities of guiding and
organizing the State management over commercial business payment
service in domestic payment of Vietnam's commercial banks.
- Perfect the inspection, supervision and handling of violations in
the provision process of commercial business payment services in


domestic payment of Vietnam's commercial banks.

5. The structure of the thesis
In addition to the introduction, conclusion, list of research works
of research student, reference list, appendix, the Thesis consists of 4
chapters, specifically:
Chapter 1: Study's overview and research methods of the thesis's
theme:
Chapter 2: Theoretical issues and practical experience on state
management of non-cash payment services in domestic payment of
commercial banks.
Chapter 3: Status of services and state management of non-cash
payment services in domestic payment of Vietnam's commercial banks.
Chapter 4: Development orientation and solutions to improve the
state management of non-cash payment services in domestic payment
of Vietnam's commercial banks.


Chapter 1
STUDY'S OVERVIEW AND RESEARCH METHODS OF THE
THESIS'S THEME

1.1. Overview of research situation related to thesis's theme
1.1.1. Studies on the development of commercial business payment
services of commercial banks
Case studies on this issue include: Trinh Thanh Huyen (Doctoral
thesis in 2012) “Development of commercial business payment
through commercial banks in Vietnam”; Hoang Tuan Linh (Doctoral
thesis in 2009) “Solutions on the card service development at
commercial banks in Vietnam”; Kham Pha Panmalaythong (Doctoral
thesis in 2012) "Completion and development of commercial business
payment of national treasury Laos”; Le Van Luyen (Sectoral research

theme for 2014) "Development orientations and solutions for managing
intermediary payment services in Vietnam”; Nghiem Thanh Son
(Sectoral research theme for 2012) "Completion of the overall structure
of payment systems in Vietnam by 2020”; Project on non-cash
payment in the period of 2006-2010 and orientations to 2020; Tao Zhu
and Eliot Maenner (2009); Łukasz Goczek, Bartosz Witkowski (2015);
Yancho Dimov(2011).
Until now, there have been no studies on risk identification.
Studies on risk in investing stocks abroad are mostly quantitative
research in the following three directions.
1.1.2. Studies on state management of banking services
Case studies on this issue include: Dao Anh Tuan (Doctoral thesis
in 2013) "State management of e-commerce"; Le Ngoc Lan (Doctoral
thesis in 2013) "State management of credit activities of Vietnam's
commercial banks”; Pham Ngoc Ngoan (Doctoral thesis in 2010)
"Perfection of state management of payment card services at Vietnam'a
commercial banks"; Can Quoc Hung (Doctoral thesis in 2009)
"Perfection of structure and management of payment activities through
payment service providers in Vietnam"; Nguyen Thi Thuy(Doctoral
thesis in 2012) "Perfection of management mechanism of payment
activities through payment service providers in Vietnam”


1.1.3. Studies' space and scientific and practical value are inherited
from published research works
1.1.3.1. Limitations and spaces of studies
- Most of the new studies is limited to the case study in some
commercial banks, it has not researched the whole banking system
yet;Most of these studies only researched on the development of
commercial business payment services or management ways of payment

service providers without deep research on state management of
commercial business payment services; The research data before 2012;
The authors mainly offer solutions to develop commercial business
payment services of commercial banks and some proposals and
recommendations for commercial banks.
Currently, there is a space in both theoretical and practical issues
of state management for this service in the period 2012 to 2017,
including the following main issues:
- Theoretical basis for state management of commercial business
payment services in domestic payment of commercial banks; The
contents of the state management of commercial business payment
services in domestic payment of Vietnam's commercial banks shall
comply with the management functions and contents of service
activities, create the evaluation criteria and factor groups affecting the
state management of commercial business payment services.
- Comprehensive surveys and assessments on state management
situation of commercial business payment services in domestic
payment of Vietnam's commercial banks in the period of 2012-2017;
Results, limitations and causes of limitations in the state management
of commercial business payment services in domestic payment of
Vietnam's commercial banks
- Proposals have scientific and practical basis on orientation and
solutions to improve the state management of commercial business
payment services in domestic payment of Vietnam's commercial banks in
the period from now to 2020 with a vision to 2030 to perfect and improve
the quality, validity and efficiency of state management of this service.
1.1.3.2. The scientific value of the thesis is inherited
- The basic theoretical issues of commercial business payment
through commercial banks in the market economy; Components of



payment systems, risk and risk management in commercial business
payment;Conditions for the development of commercial business
payment in Vietnam; Analyses of the status and level of commercial
business payment development in Vietnam in recent years; A system of
solutions for commercial business payment development through
commercial banks in Vietnam in a safe and effective way.
1.2. Research questions of the thesis
- What are the factors that affect the demand for commercial bank
payment services through commercial banks, trends and levels of
impact? How does the State need to have policies and organizational
management for this service to develop services? - What is the state of
implementation of state management contents of commercial business
payment services through Vietnam's commercial banks in the period of
2012-2017? What problems need to continue to study to improve?
- Criteria for assessment and status of quality, validity and
efficiency of state management of commercial business payment
services in domestic payment of Vietnam's commercial banks
according to these criteria?
- What measures should be taken to improve the state management
of commercial business payment services in Vietnam, contributing to
the comprehensive development of commercial business payment
service at Vietnam's commercial banks in the period of 2018-2020,
with a vision to 2030?
1.3. Research methods and models of the thesis's theme
1.3.1. Research methods of the thesis’s theme
1.3.1.1. Collection method of information
- Primary information: In order to have a scientific and practical
basis for the assessments of the current situation and orientation for
improving the state management of commercial business payment

services in domestic payment in Vietnam, research student interviewed
some experts and investigated sociology with the questions predesigned.
- Secondary information: The secondary data is taken from the
databases of state banks, banking associations, some commercial banks
... in the period of 2012-2017. In addition, some secondary information


is collected from the website of the Government, Ministry of Finance,
General Statistics Office of Vietnam by the author.
1.3.1.2. Information processing methods
- Primary information
The Research student uses traditional statistical methods to
summarize the opinions of people and experts.
Input data form is designed as a spreadsheet, the variables are
encoded according to the structure of the survey form. The specific
information in the survey forms is entered according to variable code
with appropriate data formats.The data is then embedded and
processed by using SPSS 16.0 statistical software with analysis of the
discovery factor, reliability, value and regression analysis with
quantitative independent variables, difference analysis for qualitative
independent variables
- Secondary information
+ Spreadsheets are calculated according to the total criteria,
increase and decrease according to directed number and absolute
number.
+ Line charts (line); Column charts (column).
1.3.2. Research process and quantitative researchmodel
Feel the useful, convenient
Demographic characteristics
Macro encourage policies

Micro promotion programs

Readiness, satisfaction, and intention to continue to use commerc

Development of technical and technological infrastructure
Feel about the service of commercial banks
Worry about risk, malfunction, loss

Figure 1.2: Research model of factors affecting commercial
business payment


Chapter 2
THEORETICAL ISSUES AND PRACTICAL EXPERIENCE
ON STATE MANAGEMENT OF NON-CASH PAYMENT
SERVICES IN DOMESTIC PAYMENT OF COMMERCIAL
BANKS
2.1. The basic issues of non-cash payment services
in domestic payment of commercial banks and
conditions for the service development
2.1.1. Commercial banks and commercial banks' services
2.1.1.1. The concept of commercial banks
“A commercial bank is an intermediary financial institution that
is capable of performing a full range of banking and financial services,
such as receiving, providing credit and providing payment services for
profit purposes.”
2.1.1.2. Services of commercial banks
Banking service is a part of financial services, including all
monetary operations, credit, payment, foreign exchange ...of the bank
for clients as organizations and individuals.

2.1.2. Commercial business payment services in domestic payment of
commercial banks
2.1.2.1. Concept, characteristics and role of commercial business
payment services
a. The concept of commercial business payment
Payment for domestic commercial business is the translation of the
value from one account to another in the accounting accounts system of
the State Bank, credit institutions, state treasury, means of commercial
business payment and through one of the payment systems provided by
the Law of the State Banks and the Law of Credit Institutions.
b. The concept of commercial business payment services of
commercial banks
"Commercial business payment services of commercial banks is a
provision activity of bank's payment service by using payment
instruments/methods to get/transfer money from the account/cash limit
of payer to the beneficiary's account or to be offset against each other
through the supplier."
c. Characteristics
Due to the nature of commercial business payment is a type of
service, so this type of service has the characteristics of specific types


of services as follows: Concurrency; Integrality; Heterogeneity;
Invisibility; Non-storage.
d. The role of commercial business payment services in the economy
For commercial bank: For commercial banks, commercial business
payment is a clearing tool between banks that does not have to use banknote, which makes the payment easier and circulation of money faster and
control easily. For central bank: Commercial business payment increases
the circulation of money in the economy; For financial institutions:
Increasing the proportion of commercial business payment not only saves

the circulation costs, but also helps to manage the assets of the enterprises
better; For consumers: make the process of payment simple, fast, safe,
economical, convenient and timely exchange,... this will contribute to
promoting the production and circulation of goods.
2.1.2.2. Means of payment for commercial business in domestic
payment of commercial banks
Commonly used means: cheque; UNT; UNC; card; other means of
payment (Internet banking, Digital wallet; Mobile Banking/SMS banking).
2.1.3. Content of commercial business payment servicesof
commercial banks
Payment activities of Commercial business at commercial banks
is the opening of accounts, providing and implementing payment
facilities, organizing and participating in payment systems, prevention
and risk mitigation.
2.1.4. Risk and risk management in payment activities of
Commercial business in domestic payment of commercial banks
Common Risks in Commercial business payment services,
especially commercial banks, as intermediaries for payment to economic
organizations and individuals in society are credit risks, liquidity risk,
operational risk, legal risk, systemic risk, counterfeit account risk.
2.1.5. Conditions for developing commercial business payment
services in domestic payment of commercial banks
First, economic and social conditions; Second, infrastructure
conditions; Third, the conditions for the organization of systems and
networks providing payment services and payment intermediary
services.
2.2. State management of commercial busibess payment services in
domestic payment of commercial banks



2.2.1. Concepts, objectives and methods of State management of
commercial business payment services in domestic payment of
commercial banks
2.2.1.1. Concept
State management of commercial business payment services of
commercial banks is that the State uses mechanisms and policies to
organize and affect the commercial business payment services of
payment service - commercial banks providers in order to make
payment activities in the economy smooth, convenient and effective.
2.2.1.2. Objectives
- General objective: To contribute to the implementation of national
monetary policy. Establishment of a legal framework for commercial
business payment services to develop widely. Ensure timely management
of the State for commercial business payment services. To create a healthy
and active payment activities of commercial business, create confidence
for people and help commercial banks maintain and consolidate their
prestige in the marketplace.
- Specific objectives: The central bank as the manager (the manager);
For credit institutions and non-bank units which are permitted by the central
bank to carry out intermediary activities, the banks shall have to receive,
deploy and organize the payment according to the policy mechanism and
regulations. specific of the central bank; For economic organizations, social
organizations, enterprises and all citizens as well as foreigners operating in
the territories which wish to make payment and use payment services for
commercial business, they must abide by law and regulations of the State
that direct payment service providers provide guidance for implementation.
2.2.1.3. Governance method
Governance methods of the central bank include: administrative
methods, economic methods and methods of education, persuasion.
2.2.2. Content of State management of commercial business payment

services in domestic payment of commercial banks
2.2.2.1. Under the management function: policy development;
Organizing the implementation; Inspection, supervision and handling
of violations).
2.2.2.2. According to the content of service activities: Commercial
bank management provides services to open account of payment of
commercial business for customers; Management of commercial banks
providing business commercial payment services to customers;
Management of commercial banks to organize payment systems.


2.2.3. Evaluation criteria and factors affecting state management of
commercial payment services in domestic payment of commercial banks
2.2.3.1. Criteria for State management assessment for business
payment services in commercial payment of commercial banks
Effectiveness criteria, efficiency criteria, appropriate criteria,
sustainability of State management for commercial payment services.
2.2.3.2. Factors affecting state management of commercial business
payment services in domestic payment of commercial banks
- Factors belong to the management subject: macro environment
and state policies; Human resources of state management agencies;
Level of IT application of state management agencies.
- Factors belong to the institutional controls: operational status of
commercial banks; Executive capacity and human resources in the
field of payment.
- Factors of network payment behavior: The socio-economic
environment; Technology and infrastructure for commercial business
payment; Population structure and educational level; Psychological factors.
2.3. State management experience for commercial payment
services in domestic payment of commercial banks in some

countries in the world and lesson learned for Vietnam
2.3.1. Experience of some countries on state management of
commercial business payment services in domestic payment of
commercial banks
The thesis focuses on the experience of some countries with
commercial payment systems being developed with representatives from
the US, Korea, Japan and China, including: Experience in developing
strategies for commercial payment development, experience in developing,
promulgating laws and policies on commercial payment services,
experience in implementing payment service of commercial business.
2.3.2. Lessons learned for Vietnam
First, there should be policies and regulations of the state. Second, the
development of commercial payment services should pay attention to such
issues as: people's intellectual level, weak technological infrastructure,
permeability. Third, coordination between the state and commercial banks
in the construction of synchronous payment infrastructure, connection of
payment systems; Fourth, development of commercial business payment
services need to follow the roadmap; Fifth, attention should be paid to the
trade off between management easing and tightening of management of
commercial business payment services.


Chapter 3
STATUS OF SERVICES AND STATE MANAGEMENT OF NONCASH PAYMENT SERVICES IN DOMESTIC PAYMENT OF
VIETNAM'S COMMERCIAL BANKS.
3.1. Current status of commercial business payment services in
domestic payment of Vietnam’s commercial banks and conditions
for the service development
3.1.1. An overview of the system of commercial banks and
commercial business payment services in Vietnam

At present, the commercial banking system in Vietnam has four
state-owned commercial banks and 31 joint-stock commercial banks.
The scale of charter capital gradually increased over the years, of
which, in 2017 compared with 2012, the charter capital of state
commercial banks increased by 31.37%, the charter capital of joint
stock commercial banks increased only 13,08%. Capital adequacy ratio
(CAR) of each bank as well as the system is improved day by day.
By the end of 2017, the proportion of cash / total means of
payment tends to decrease, from 14.2% in 2010 to now to 11.99%.
3.1.2. Current status of commercial business payment services in
domestic payment of Vietnam’s commercial banks
3.1.2.1. The status of opening accounts and supplying means of
payment of commercial banks
Figure 3.4. The number of individual accounts and account balance for
the period 2012-2017

3.1.2.2. Results of providing commercial business payment services by
each means of payment
Figure 3.6. The volume and value of trading liquidity of means of
payment for commercial business of period 2012-2017

3.1.2.3. Risk situation and risk management in payment of commercial
business of commercial banks
Risks in Commercial Business Payments: Facing high-tech crime
with more sophisticated methods and tricks.
* Risk management in the payment of commercial business of
commercial banks: Commercial banks, constantly investing, upgrading
and applying modern technology to create convenience for customers,



the security, safety and security in the payment is placed on top.
Customers are more alert to the tricks of online criminals, do not
provide personal information, account information, password to the
suspect to avoid abuse.
3.1.3. Situation analysis of conditions for developing commercial
business payment services in domestic payment of commercial banks
in Vietnam
3.1.3.1. Socio-economic situation of Vietnam in recent years
Vietnam is increasingly recognized by many countries with a
market economy together with bilateral and multilateral trade
agreements such as joining TPP which are being promoted by the
government, contributing to the completion of the economic structure.
3.1.3.2. The current status of infrastructure serving the payment of
commercial business of commercial banks in Vietnam
a. The status of technology for developing commercial payment
services in domestic payment
Infrastructure for payment activities of commercial banks has been
strengthened and improved. By the end of 2017, the country has
developed 268,813 POS devices for card payment and 17,558 ATM
devices for the service of the card holder's payment activities. The
sharing of networks and enhancing interconnection of ATM and POS
systems is also actively implemented. Core banking system has been
widely applied in most banks in Vietnam.
b. The status of payment transmission systems
- Current status of the banking payment system: the internal
payment system of commercial banks; Electronic clearing system;
Electronic inter-bank payment system; Bilateral payment system
between commercial banks; Payment intermediaries.
- The status of card switching centers: On December 22, 2014, the
Prime Minister signed the Decision No. 2327 / QD-TTg approving the

exemption from economic concentration post mergering for Banknetvn
and Smartlink..
3.1.3.3. Current status of the network of payment service providers and
payment intermediaries
a. The status of organizations providing payment services
In
2017, the State Bank has 63 branches across the country. State-owned
banks play a pivotal role in the operation and management, ensuring the
safety and efficiency of the entire payment system and at the same time


monitoring the system in the economy. Management and supervision of
payment operations is the most important function of the State Bank.
As of 31/12/2017, the whole payment market has 20 non-bank
institutions licensed by the State Bank to provide payment services.
Especially in 2016, Vietnam National Financial Switching Joint Stock
Company (Banknetvn) changed its name to Vietnam National Payment
Joint Stock Company (Napas) since 04/02/2016.
b. The status of organizations providing intermediary payment services
In recent years, many non-bank organizations have been involved
in providing payment services between banks and customers. For the
type of service providing payment infrastructure, the company mainly
provides two services: financial switching service and online payment
gateway service.
3.1.3.4. The legal status of commercial payment services in the domestic
payment of commercial banks in Vietnam
The legal framework for commercial payment services has
gradually been strengthened, infrastructure has been paid attention by
the banking system and invested in, to modernization all of them.
3.1.4. Influence verifying of some factors on the development of

commercial business payment services in domestic payment of
commercial bank in Vietnam
Bartlett and KMO test results for the observed variables:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
,662
Sampling Adequacy.
Bartlett's Test of Approx. Chi3429,7
Sphericity
Square
30
df
276
Sig.
,000
Analyzing the effects of F1, F2, F3, F4 and F5 on satisfaction and
willingness to use commercial payment instruments


KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
,629
Sampling Adequacy.
Bartlett's Test of Approx. Chi65,987
Sphericity
Square
df
3
Sig.
,000

The Bartlett and KMO test results for the dependent variables
show that KMO = 0.629> 0.50, satisfies the requirement for EFA
implementation, and, according to Kaiser (1974), if KMO> 0.6 is
acceptable, Sig. = 0.000 <0.05, we can reject the correlation matrix as
a unitary matrix, ie variables are related so that we can implement
EFA.
To measure the effect of factors from F1 to F5 on QD, we use the
linear multiple regression model as follows:
NCPD = 3,73 - 0.443F1 + 0.424F5
The results of the analysis showed significant evidence for the
recognition of H2_1 and H6_1 with 95% confidence. That is, there is a
statistically significant relationship between MAP and RML with
SWU, where positive macro stimulus policies and barriers have a
negative impact on readiness, the satisfaction and intention to continue
to use the means of payment of commercial business
The test results show that there is no difference in willingness,
satisfaction, and intention to continue using the means of payment for
commercial business among groups by occupation, sex, age and
average monthly income, but there are differences between the groups
by educational level.
3.2. Status of State management of non-cash payment services in
domestic payment of Vietnam’s commercial banks
3.2.1. Status of state management policy for commercial payment
services in domestic payment of commercial banks in Vietnam
3.2.1.1. Situation of strategic planning for commercial payment service
development in domestic payment of commercial banks
In parallel with the process of restructure the commercial banks
system over time, the State has made policies and guidelines towards
the development of the network payment services system, including
the payment service of comercial business in the public sector,

corporate and residential sectors.


3.2.1.Current status of construction and issuance of policies for
commercial business payment services in domestic payment of
commercial banks
The legal basis of the commercial business payment system is the
Government decree on the organization of payment for commercial
business and the decision of the State Bank on the rule of the payment
of commercial business. The State Bank has step by step advised the
Government on the promulgation of legal documents suitable to the
new period and the issuance of legal documents to ensure payment
activities for better development.
The existing legal documents currently in force have generally
clearly regulate the activities of commercial business payment. Decree
No. 101/2012 / ND-CP issued by the Prime Minister on 22 November
2012 is the highest legal document under the law for governing
payment of commercial business activities. Until now, the legal
corridor for payment of commercial business has been gradually
established and improved.
3.2.2. The state of state management apparatus for non-cash
payment services in domestic payment of commercial banks in
Vietnam
3.2.2.1. The state of organization of state management agencies on
payment services for commercial business in domestic payment
State management of commercial payment services in domestic
payment of Vietnam’s commercial banks reflects the content of State
management of commercial business payment services decentralized
from the Government; Provincial People's Committee; relevant
ministries; Payment Department/ State Bank; State Bank of the

province / city; State Treasury;...
3.2.2.2. The state of guiding and organize to implement the process of
providing commercial payment services in domestic payment
a. The organization and implementation of the process of
providing commercial business payment services
The process of implementation in payment activities under the
management of the State Bank is carried out with a fairly strict and
designed process with traditional procedures and innovation in
accordance with the mechanism in accordance with the mechanism.
Newly converted. Over time, the State bank has been in charge of
coordinating with relevant ministries and agencies to develop and
implement the content and develop the banking payment system.


b. The state of guiding the organization and implementation of the
commercial business payment activities
- Payment of commercial business in the public sector: Regarding
expenditure management in the Government sector by means of
payment for commercial business; Payment of wages through
accounts; Payment of social allowance and social allowance through
account.
- Payment for commercial business in the enterprise sector:
Commercial banks have taken the initiative in approaching enterprises
to provide information on the characteristics and utility of each type of
means of payment, facilitate businesses in opening accounts and
accessing payment services.
- Payment of commercial business in residential areas: Scheme on
development of means and services of payment for commercial
business; The network development scheme accepts the means of
payment for commercial business

3.2.3. The status of inspection, supervision and handling of
violations in the provision of commercial payment services in the
domestic payment of commercial banks in Vietnam
Inspection and supervision of commercial banks' payment services
in domestic payment in the recent time in order to contribute to
ensuring the safe and healthy development of the system of
commercial banks and the national payment system. In the period
2012-2017, the Payment Department has coordinated with relevant
units to study and step by step carry out the function of supervising the
network payment systems of Vietnam in accordance with the
requirements of the central bank in line with international practice.
Organize monitoring of payment systems: IBPS Monitoring System;
Monitoring retail payment system; For some other payment systems
such as interbank money transfer, securities settlement.
3.3. Assessment of state management of commercial payment
services in domestic payment of commercial banks in Vietnam
3.3.1. Achieved results and causes
3.3.1.1. Achieved results
In the period of 2012-2017, state management of commercial
business payment services said that in general, the state management
of commercial business payment services in the domestic payment of
commercial banks in Vietnam has made many positive changes. , meet
the needs of customers and the economy; The perception of people on


commercial business payments has improved significantly; the
practical benefits of commercial business payments gradually be
confirmed; The legal framework, organizational model, operation
content, method and technical process of commercial business payment
are increasingly improved in line with economic development.

3.3.1.2. Causes
- Causes from management subjects: Drastic management by the
Government and other ministries in the formulation and
implementation of commercial business payment schemes; Select the
right tools for State management.
- Causes from the socio-economic environment: The process of
economic integration in the period 2012-2017 has made the Vietnam
economy in general and the payment service of our country has a great
impact and change.
3.3.2. Limitations and reasons
3.3.2.1. Limitations
Potency is low; Efficiency is not adequate; Management activities
are not in line with the practice of developing payment services; No
guarantee of uniformity and stability.
3.3.2.2. Reasons
- Causes of management owner: The work of elaborating, amending
and promulgating legal documents of the SBV has not kept pace with
the demands of IT application and development. Applying the method
of state management throught the method of administration is not
actually suitable. The coordination between related agencies and
organizations is not close, not synchronized, not creating the necessary
conditions, promises for the development of commercial business
payment
- Causes of management guest: The technical infrastructure of
banks in general has not developed well; There are still many distances
between the banks, the incompatible environment, the impedimental
connection between the banks;
- Causes of the management environment: The telecommunication
infrastructure is still limited, contains gravity potential related to
security and confidentiality, not keeping pace with the user's

development speed. Habits, mentality in use of cash by a part of the
agency, organization and the general department is also common.


Chapter 4
DEVELOPMENT ORIENTATION AND SOLUTIONS TO
IMPROVE THE STATE MANAGEMENT OF NON-CASH
PAYMENT SERVICES IN DOMESTIC PAYMENT OF
VIETNAM'S COMMERCIAL BANKS.
4.1. Development orientation and viewpoint of finalization of state
management of commercial business payment services in domestic
payment of Vietnam’s commercial banks up to 2020 orientation
towards 2030.
4.1.1. Forecasts on the socio-economic situation and trends in the
development of commercial business payment
In the period 2018-2030, the Asia-Pacific region is still the dynamic
development center of the world economy. The central role of the
Association of Southeast Asian Nations (ASEAN) in the institutions has
continually affirmed but still challenging.
Vietnam has entered a new stage of development with new potential
and forces, allowing Vietnam to integrate broadly with the region and
the world, opening up new opportunities for development and facing
many big challenges, still risking lagging.
4.1.2. Development of network payment services in Vietnam
4.1.2.1. Main orientations
- First, development of organization providing service of
organizations providing payment intermediation services; Third,
development of means of payment, continuation of development;
Fourth, development of payment infrastructure.
4.1.2.2. The objectives to be set network payment in the domestic

payment; Second, the development
- Overall objective: Make a clear shift in the commercial business
payment in the economy, reduce the social costs associated with cash, reduce
the share of cash in circulation on GDP, cash on total means of payment;
Ensure the security, safety and efficiency of the payment systems, services
and means of commercial business payment; establish effective mechanisms
to protect consumers of commercial business payment services; Promote the
use of e-commerce, reduce the use of cash in transactions between
individuals, enterprises and the Government; Improve the effectiveness of
management and supervision of state management agencies.
b. Specific objectives: By the end of 2020, the proportion of cash to
total liquidity is less than 10%. By 2030, this proportion is lower than


8%. To strongly develop card payment via card-accepting devices at the
point of sale; To gradually increase the number and value of card
payment transactions through card-accepting devices. By 2020, the
market will have more than 300,000 POS cards installed with a
transaction volume of about 200 million transactions a year.
4.1.3. The view of finalizing state management of network payment
services in domestic payment of commercial banks in Vietnam
- First, improvement of the state management of payment services
in domestic payment of commercial banks in Vietnam must be
associated with the process of economic and financial integration, meets
the banking standards;
- Second, the improvement of state management of payment
services in the domestic payment of commercial banks in Vietnam must
be based on the inheritance and development of legal regulations on
commercial business payment;
- Third, improvement of the state management of payment services

in domestic payment of commercial banks in Vietnam must be based on
the orientation to develop diversification of banking products and
services in order to provide sufficient and timely convenient banking
services for the economy;
- Fourth, improvement of the state management of payment
services in the domestic payment of commercial banks in Vietnam must
have the state management through the management, implementation
and implementation guidance.
- Fifth, the completion of State management of payment services in
domestic payment of commercial banks in Vietnam must be based on
the strengthening of supervision and assessment of the safety and
efficiency of payment systems managed and operated by the SBV.
4.2. The solutions of finalizing state management of network
payment services in domestic payment of commercial banks in
Vietnam
4.2.1. Completion of the legal environment for commercial business
payment services in domestic payment of commercial banks
First, on the completion of the overall legal framework for the
commercial business payment; Second, on the improvement of the legal
framework to protect the interests of service users; Third, the
promulgation of compulsory commercial business policies enacted on a
roadmap for specific types; Fourth, on tax reduction, tax exemption
when dealing with commercial business; Fifth, regulating state public


services will be implemented through commercial business payment
services; Sixth, encouraging organizations to provide intermediary
payment services in cooperation with commercial banks.
4.2.2. Completion and improvement of the quality of guiding and
organizing the implementation of state management of commercial

business payment services in domestic payment of commercial banks.
a. General solution
To coordinate the mass media agencies at the central and local
levels, make full use of the media and the press in the banking sector in
order to intensify the propagation and dissemination of knowledge,
training and guidance on payment without use cash to people and
enterprises in appropriate, practical and effective forms.
b. Specific solutions:
- For network payment services in the public sector: There should
be close coordination between the parties to support the enterprises after
registration that can pay electronic tax easier, more convenient; There
should be better connection and integration between e-commerce
websites and online payment services of banks so that customers can
make online purchases easily and conveniently and safely.
- For payment services in the residential area: First, learn the
experience of international card organizations and boldly implement the
mPOS application; Second, the State needs to take more measures to
develop IT for commercial business payment; Third, the expansion and
upgrading of the Inter-bank Electronic Payment System (IBPS), which
aims to make Vietnam have an advanced payment system in the region,
to be appropriate with international standards to prepare for integration;
Fourth, increase the number of day clearing sessions and extend the
operating time for low value payment systems.
- For the promotion of network payment services in rural areas: In
order to develop e-commerce in rural and remote areas, developing
commercial bank payment services requires determination as well as
resources, investment capacity and more time.
4.2.3. Improvement of the inspection, supervision and handling of
violations in the process of providing commercial business payment
services in domestic payment of commercial banks

Rapidly strengthening the state management of network payment,
whereby the focus of management is focused on monitoring the
payment system, step by step mitigating administrative management,
and details, about professional technical process. This is a prerequisite