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Expanding Pilot of non-cash payment for social protection policies


On November 25th, the Ministry of Labour -Invalids and Social Affairs cooperated with the World Bank to organize the seminar on "Pilot of non-cash payment for social protection policies". Participants of this seminar included Deputy Minister of Labour - Invalids and Social Affairs Le Tan Dung, leaders of Social Protection Department, Vietnam Post Corporation (Vietnam Post), World Bank and representatives of ministries, branches, departments, central and local agencies.

The workshop focused on assessing the possibility of applying non-cash electronic payments for social security policies in Viet Nam; consulting about the pilot implementation plan of non-cash social security policies in 3 big cities ò Hanoi, Hue, City. Ho Chi Minh; proposing solutions to pilot payment of non-cash social security policies in Viet Nam.
At the seminar opening speecj, Mr. Le Tan Dung, Deputy Minister of Labour - Invalids and Social Affairs affirmed that beneficiaries of social security policies were being expanded with higher levels of assistance. Therefore, modern tools were required in managing better policies and beneficiaries. Electronic payment in the implementation of social assistance programs was currently a trend that many countries were applying, helping to save costs, reduce travel time for beneficiaries, and support the right beneficiaries timely, conveniently and in the long term, help them access better in more transparent financial services.
Mr. Tran Chi Trung, Director of Postal Financial Services Division of Vietnam Post affirmed that with an extensive network of 63 provinces, reaching to villages, communes and islands, Vietnam Post became a sole provider of payment services for social security policies under the direction of Vietnam Prime Minister. Recently, Vietnam Post has actively coordinated with the People's Committee, the Department of Labour - Invalids and Social Affairs and Vietnam Social Security in implementing the payment of social security benefits both in cash and via bank accounts for the beneficiaries who are pensioners, social protection beneficiaries in Cao Bang province.
Over the past years, Vietnam Post has actively participated and became an important part of government projects, namely the New Rural Development Project, Non-cash payment Project, Administrative procedure reform, digital transformation. Vietnam Post is confident that with current information technology platforms, financial and human resources, Vietnam Post is completely ready to meet all requirements for the implementation of social security policy payments through electronic payments. At the same time, Vietnam Post has also been cooperating with local banks such as VietinBank, SEABank, LienViet PostBank to offer products and solutions for each area to maximize the non-cash social security payment and for the maximum benefit of the community. Identifying the biggest obstacle in implementing non-cash social security payments is the people’s psychological preference of using cash, especially for social security beneficiaries, mainly the poor, ethnic minorities, the disable, the elderly... Vietnam Post therefore takes in consideration to solve issues of high service fees, travel distance, coverage of transaction points, usability and customer’s needs. This was also emphasized in Mr. Trung’s speech.
World Bank senior economist Nguyen Nguyet Nga highly appreciated the large network coverage in all areas of the Vietnam Post and affirmed that Vietnam Post would be an effective payment channel for people who were the social security beneficiaries in special areas with difficult travel conditions.
Under the implementation plan of Decision No. 708 / QD-TTg dated May 25, 2017, approving the project to build a national database on social security, application of information technology to address welfare policies by 2020 and development orientation by 2030, non-cash payment for social assistance policies has been piloted by the Ministry of Labour - Invalids and Social Affairs. In 2019, the pilot was also conducted in 02 districts in Cao Bang Province, expanding on the whole province scale in 2020 and 01 more district in Quang Ninh. Expectedly, 03 big cities of Hanoi, Thua Thien Hue and Ho Chi Minh City would continue to be three successful pilots to implement non-cash payments for social security policies in the coming time.