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Vietnam's Pension System to Go Digital by 2018

Vietnam’s pension distribution system is seeking to catch up with the digital age.

Vietnam Post is now working with Japan’s Hitachi and Sumimoto Mitsui Banking Corporation to digitalize pension and social security payment methods, according to a recent press release from Hitachi.

The e-money scheme includes issuing pensioners integrated-chip cards, which can be used to monitor payments. Local post offices will be equipped with card readers to speed up the paper-based procedures. Additionally, instead of being confined to a pre-registered Vietnam Post branch and to a fixed period each month, beneficiaries will be able to go to their preferred post office anytime during its working hours.

Citizens of Hai Duong province will be the first to receive the IC cards starting in the middle of this month, reports Tech Wire Asia. Country-wide implementation is expected to be completed by 2018.

However, the news source also deemed the project to be a tough challenge for all parties involved, citing Vietnam’s reluctance to accept foreign involvement as a deep-rooted hindrance. In addition, cash remains the most popular payment method throughout the country, and only 20% of the population has a bank account, according to VietnamNet.

However, if successful, this will be one of the first moves to lay down the infrastructure for the transition toward a cashless society.

[Photo via Tech Wire Asia]

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