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25 February 2025

Vietnam Introduces Cashless Payments For Social Welfare Benefits

Government aims to improve transparency and efficiency for social assistance recipients through modern payment methods.

The Vietnamese government is spearheading an innovative approach to social welfare by enhancing its payment methods to include cashless options. This move aims to increase transparency, efficiency, and accessibility for those benefiting from social assistance programs. On February 21, 2025, the Cao Bằng Provincial People’s Committee issued Directive No. 448 to implement these changes, urging various departments to adopt modern payment systems.

According to the directive, the shift to non-cash social welfare payments is not only about technology but also about improving public trust and ensuring aid reaches those who need it most. Chairperson of the provincial committee instructed local authorities to review and accelerate the adoption of cashless payment methods as designated by the provincial government plan from September 2023.

“The emphasis is on enhancing public awareness of the advantages of non-cash payments and ensuring effective implementation of social assistance policies,” local government officials mentioned. This direction reflects the commitment to transition aid distribution away from cash and responds to the needs for accountability and traceability.

To facilitate this change, the Department of Labor, Invalids, and Social Affairs will continue to guide localities on transitioning from cash payments to bank accounts. This effort includes raising awareness among citizens and the beneficiaries of social assistance about the positive impacts of cashless payments, ensuring they understand the benefits of direct bank transfers over cash distributions.

One significant aspect of the program targets vulnerable groups, including disabled individuals. Alongside cashless payments, local governments are also focused on providing legal aid to persons with disabilities. This includes organized workshops and activities to mark international observances such as the International Day of Persons with Disabilities on December 3.

Legal aid initiatives aim to empower vulnerable populations, particularly women and children facing violence or human trafficking. By enhancing legal services and ensuring their availability to marginalized groups, the government is working to protect the rights and welfare of these individuals.

The province's strategy is comprehensive, involving collaboration from various agencies. Local financial institutions are expected to play pivotal roles by establishing more ATMs and providing alternative banking services to those living in remote areas. The Central Bank of Cao Bằng equally supports these efforts, ensuring banks develop diverse methods of payment to facilitate the transition.

The approach reflects broader governmental efforts to use digital technologies for public service delivery. By promoting cashless welfare payments, the Vietnamese government not only modernizes its financial practices but also addresses issues of transparency and efficiency within the welfare system.

Within the implementation framework, state agencies will be tasked with monitoring and evaluating the deployment of cashless payments continuously. They will track funding allocations and report back to the provincial committee to uphold accountability.

Overall, these initiatives signify Vietnam’s commitment to social welfare reform, demonstrating a proactive stance on utilizing technology to support its most vulnerable citizens. Moving away from traditional cash-based systems is expected to pave the way for improved citizen engagement and participation.