A draft decree by the State Bank of Vietnam (SBV) has stirred up public concern, as it would forbid the use of cash for the purchase of cars and motorbikes.
Most auto dealers prefer non-cash payment
Recently, Bui Quang Tien, Director of the SBV’s Payment Department said the bank would submit the draft decree on cash payment to the prime minister by June 30 at the latest so that it could be issued this year.
Necessity
Many people said it is necessary to minimise or even ban the use of cash in buying cars and some other big ticket items.
Several experts said sooner or later such a regulation should be applied in Vietnam, and that now is a good time to consider it. They say that such a move could help minimise risk in financial management at all levels.
“A mainly cash-based society is something of the past. In developed countries, people tend to use credit instead of cash," said Professor Dang Hung Vo.
Laurent Charpentier, Chairman of Vietnam Automobile Manufacturers' Association (VAMA), also supported the proposed ban using cash for buying vehicles.
“I think that this is a good idea. The automobile industry is one that is intertwined with banking, especially when financing is used,” he commented.
An anonymous director of a branch of a luxury car dealer in Vietnam said, “One day a client bought two cars worth almost VND10 billion (USD478,240). Unfortunately, he paid in cash with VND50,000 to VND200,000 notes. We had to assign staff to count and sort the money, and then call the bank to ask them to allow us to make a late deposit."
Concerns
Most automobile dealers agreed that non-cash payment are modern and necessary, but think that guidelines for a new system should be thought out before implementing such an action.
Ha Minh Tuan, General Director of AnyCar, second-hand car dealer, said all car companies prefer non-cash payment to prevent problems and possible risks, such as counting, counterfeit currency and security services.
Although Tuan sees the policy as feasible in larger cities, he worried that its wide application in rural and mountainous areas, or among people who are unfamiliar with the banking system could cause difficulties.
Several other concerns have been brought up, such as worries over transaction charges that may discourage purchases and even overcrowding at banks.
Professor Dang Hung Vo said that it is important to change people’s habits and improve the quality of service in banking.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
