The proportion of cash transactions in total means of payment declinedfrom 20.3 percent in 2004 to 14 percent in 2010 and around 12 percent atpresent, according to the State Bank of Vietnam.

Non-cash transaction services have developed vigorously over the lastthree years with the boom of banking cards, Internet banking, mobilebanking and digital wallets.

Non-cash payments have increasingly been popular public servants, state employees, students and workers.

The card-based salary payment has generated huge profits for theState, banks and users. As of Q1 2013, 1.83 million public employees, or66 percent of the total received salary through bank accounts.

Commercial banks have heavily invested in ATM or Point of Sale (POS)locations. So far, 14,400 ATM machines and 116,700 POS locations havebeen installed. Around 62 million cards were issued.

ATM card holders in Vietnam had 89.8 trillion VND (4.08 billion USD)in 42.7 million current accounts at the end of June, according to thelatest data from the central bank which said it has taken measuresto boost non-cash transactions.

Vietnam has set atarget of reducing the proportion of cash payments to below 11 percentby 2015 and has 250,000 points of sales in use nationwide.-VNA