On May 15, 2024, the Vietnamese Government issued Decree No. 52/2024/ND-CP on cashless payments, effective from July 1, 2024. This decree replaces Decree No. 101/2012/ND-CP (as amended and supplemented). It represents a significant legal milestone in the field of Vietnam cashless payments, impacting various sectors, organizations, and individuals involved.
The new decree establishes a fundamental and robust legal framework for Vietnam cashless payment activities, promoting the use of cashless payment methods, facilitating digital transformation in the banking sector, and developing new, convenient, and safe payment products and services at reasonable costs.
Overview of Decree No. 52/2024/ND-CP
Comprehensive Legal Framework on Vietnam Cashless Payments
Decree No. 52/2024/ND-CP focusing on practicality and encouraging the application of information technology to develop safe and modern payment services and products. It inherits suitable contents and enhances the effectiveness and efficiency while addressing some limitations of Decree No. 101/2012/ND-CP.
Key Policy Changes
Electronic Money Regulations
One of the key provisions of Decree No. 52/2024/ND-CP is the inclusion of regulations on electronic money (e-money), which encompasses definitions, the nature of e-money, and forms such as electronic wallets and prepaid cards. Providers of e-money include banks, foreign bank branches, and intermediary payment service providers. The completion of legal regulations for e-money aims to prevent and eliminate illegal payment methods issued by unauthorized organizations, supporting competent authorities in preventing and handling violations in the e-money sector.
Additionally, the decree clarifies concepts related to international payments and international payment systems. The international payment regulations in Decree No. 52/2024/ND-CP enhance the management role of state agencies in international payment activities and promote cross-border payment service cooperation models in the context of technological development, innovation, and increasing support for e-commerce payments.
Payment Account Regulations
The decree introduces new regulations on opening and using customer payment accounts at payment service providers, which must comply with the State Bank of Vietnam (SBV) regulations and related legal provisions.
It also outlines conditions for closing payment accounts, such as at the request of the account holder who has fulfilled all obligations, in the event of the account holder’s death, organizational termination, prohibited acts, or prior agreements. If the account has a remaining balance upon closure, payments are made according to the account holder’s request, prior agreement, or legal provisions for incapacitated account holders or legal heirs.
The decree also includes regulations on payment services not through customer payment accounts, in line with the Law on Credit Institutions 2024 and the Law on Investment 2020, specifying entities eligible to provide these services and the conditions, procedures, and documentation required for SBV approval or revocation.
Intermediary Payment Service Regulations
Decree No. 52/2024/ND-CP also revises and supplements regulations on intermediary payment service provision to meet practical needs and facilitate service providers while enhancing state management efficiency in intermediary payment service provision.
Specifically, the decree reduces licensing requirements for intermediary payment services, removes certain administrative procedures, reviews business conditions, and clarifies details, procedures, and documentation for licensing, revocation, and re-issuance. It also establishes principles for SBV to supervise intermediary payment service providers licensed by SBV.
Additionally, the decree supplements regulations on the organization, management, operation, and supervision of national payment systems and important economic payment systems, clarifies the supervision of intermediary payment service and payment service activities, and provides transitional guidelines for commercial banks, foreign bank branches, and financial switching service providers participating in international payment systems.
Promoting Digital Transformation and Economic Competitiveness
Supporting Cashless Payments and Digital Transformation
Decree No. 52/2024/ND-CP has established a comprehensive legal framework to promote the development of Vietnam cashless payments. The additional and improved regulations on e-money, international payments, customer payment accounts, and intermediary payment services aim to increase transparency, safety, and efficiency in the national payment system.
This aligns with the practical needs and international integration requirements, significantly contributing to digital transformation, enhancing Vietnam’s economic competitiveness in the rapidly advancing digital technology landscape.
Encouraging Innovation and Sustainable Development
With new policies and regulations, Decree No. 52/2024/ND-CP aims to create a favorable legal environment, encouraging innovation and creativity in the payment sector, ensuring the rights of stakeholders, and supporting the sustainable development of the economy. The decree’s emphasis on modernizing payment methods and integrating technology reflects Vietnam’s commitment to adapting to global economic trends and fostering a competitive, innovation-driven economy.
Enhancing Legal Compliance and International Cooperation
The decree also strengthens legal compliance and supports international cooperation in payment services. By aligning with international standards and practices, Vietnam is positioning itself as a reliable partner in the global financial ecosystem. The enhanced legal framework ensures that Vietnamese businesses and financial institutions can effectively participate in cross-border transactions, thereby expanding their global reach and fostering international trade and investment.
Decree No. 52/2024/ND-CP marks a significant step forward in Vietnam’s journey towards a digital economy. By acknowledging the importance of Vietnam cashless payments and creating a supportive legal environment for their development, the Vietnamese government is paving the way for greater economic integration and competitiveness.
The decree’s comprehensive regulations on e-money, international payments, customer payment accounts, and intermediary payment services demonstrate a proactive approach to addressing the challenges and opportunities of the digital age. As Vietnam continues to grow and evolve, the implementation of Decree No. 52/2024/ND-CP will play a crucial role in ensuring a secure, efficient, and innovative payment system that supports sustainable economic development and global integration.
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