E-payments booming in Viet Nam
E-payments booming in Viet Nam
Increased use of electronic payment products added US$880 million to Viet Nam's Gross Domestic Product (GDP) from 2011 to 2015, according to a new report released by Moody's Analytics.
The report entitled "The Impact of Electronic Payments on Economic Growth" said that more products including credit, debit and prepaid cards were increasingly being used, helping to create an average 75,000 jobs annually during the five-year period.
Conducted in 70 countries over four years, the report looked at how electronic payments affected economies.
Globally, it said that increased usage of electronic payments created on average 2.6 million new jobs per year and added $298 billion to GDP, while raising household consumption of goods and service by an average of 0.18 per cent per year.
Of the countries in ASEAN featured in Moody's report, Viet Nam experienced the second highest rate of GDP growth due to increased use of electronic payments. Singapore was third and Thailand first.
The research report found that the electronification of payments benefited governments and contributed to a more stable and open business environment.
"Electronic payments help minimise what is commonly referred to as the grey economy — economic activity that is often cash-based and goes unreported," the report said.
