Non-cash payments Vietnam: New regulations

The Vietnamese government recently issued Decree No. 52/2024/ND-CP (Decree 52) regulating non-cash payments. This regulates the opening and use of payment accounts and sets out clearly the cases for blocking or closing such accounts. Decree 52 takes effect from 1 July 2024. The Ecovis experts explain the effects.

Decree 52 is an important legal document on non-cash payments with a wide-ranging impact on many related fields, subjects, organisations and individuals. It helps create a basic, solid legal framework which promotes non-cash payments, as well as facilitating the digital transformation of the banking industry and the development of new, reasonably-priced, convenient and safe payment products and services.

Additional electronic money (e-money) and international payment regulations

Decree 52 defines and clarifies the regulations on e-money. It specifies the forms of e-money which can be used in payment activities, including e-wallets and prepaid cards. E-money providers may include banks, foreign bank branches (providing e-wallet and prepaid card services) and payment intermediary service providers which provide e-wallet services linked to a customer’s bank payment account.

Regulating e-money will help to prevent and eliminate illegal payment services issued by unauthorised organisations and support the authorities in preventing and fighting illegal cryptocurrency activities (in accordance with the project to complete the legal framework for the management and handling of virtual assets, cryptocurrencies, and virtual currencies approved by the Prime Minister under Decision No. 1255/QD-TTg dated 21 August 2017).

The Decree also supplements regulations on international payments. It clarifies the concept of international payments and the international payment system and the State Bank of Vietnam’s role in managing international payments. In addition, it regulates, among others:

• The provision of services from abroad to Vietnam and vice-versa
• The implementation of international financial switching services
• The approval of commercial banks and foreign bank branches to participate in international payment systems

Moreover, it stipulates that related parties are responsible for providing complete and timely information and meeting the requirements of Vietnamese state management agencies to manage cross-border transaction flows.