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Contactless economy: unexpected momentum and the future at hand



It’s been two years since the Covid-19 pandemic turned the world upside down. The usual daily life is restricted, but that was the impetus for the new normal such as “no contact” and “social distancing” to appear.

Contactless economy: unexpected momentum and the future at hand

In the morning, when you go to work, you can book a car on a mobile phone application to your office. At the end of the trip, the fare is paid through the application, not cash.

Stepping into the office, you no longer have to use your fingerprint to check in, but the system recognizes each employee’s face to open the door and record working time. Offices are also less staffed, as there are virtual assistants or employees can communicate through mobile applications.

Not only at offices but also at public areas, less touching is also quite popular. Nguyen Dang Hung, Deputy General Director of the National Payment Corporation (NAPAS), said there is no need to use cash to buy tickets on buses, and people just need to lightly touch the chip card on the card accept device to receive tickets.

At airports and train stations, there are more and more check-in kiosks. If they do not check in online, passengers can easily check-in at kiosks to get tickets.

Banks also set up 24/7 transaction counters, where customers can deposit, withdraw money or open cards… through virtual tellers. Thanks to this support, people no longer have to wait in long queues at banking transaction points.

The tourism sector is a strong non-touch industry, which is a trend that helps ensure the safety of visitors during the epidemic season.

At many hotels, booking phone calls, waiting in line at the check-in area, turning device switches on and off, etc. are replaced by touch steps on a mobile application. Many hotels also use modern equipment to promptly update customer feedback and quickly solve problems.

At restaurants, diners can order, pay, and receive food on the app. The whole process is completely contactless, without using cash or cards. By this way, customers and employees avoid touching the restaurant’s menu, limiting the exchange of cash.

The time of digitization

Contactless economy: unexpected momentum and the future at hand

Digital-based contactless services are gradually replacing face-to-face services. Mr. Jerome Ly, CEO and Co-Founder of Savyu, a startup launching a contactless ordering solution during the social distancing period, said that the F&B industry has faced a serious crisis amid the pandemic.

“A lot of friends and partners around me are restaurant and bar owners who had to close their businesses because they couldn’t stand the pressure. Others tried to stay with a small number of customers. Restaurant staff also had their salaries reduced,” he said, adding that’s why they tried to find solutions with industry partners to overcome difficulties.

CEO of Sojo hotel chain Nguyen Ba Luan revealed that the digital experience journey of guests is built “down to every centimeter” thanks to the customer-centric strategy and it is realized on the most advanced technology platform.

“Sojo’s ambition is to redesign and even revolutionize the experience for guests staying in Vietnam in a new context. There, the need to protect the health of each person is of paramount importance and the experience content is pushed to the highest. Physical contact takes place only in a few carefully selected and calculated touch points,” said Luan.

Ms. Dang Tuyet Dung, Director of Visa Vietnam and Laos, said that consumers’ shopping and payment habits have changed significantly since the outbreak of the pandemic. Customers look to electronic payment methods such as contactless payment, online payment with the desire to experience convenient and fast features, ensuring safety when the epidemic is complicated.

Meanwhile, Dr. Pham Cong Hiep from RMIT University, said that the pandemic is changing the way we work, eat, shop, exercise and spend our free time in ways we never thought before. Individuals and organizations should prepare for the contactless economy now, as new ways of life and business practices are emerging all around us.

He said that the requirement for digital transformation in many industries has “never been so urgent” to ensure that we can move from a ‘multi-touch’ to a ‘less-touch’ business model and even a ‘no touch’.

Moving towards a contactless economy

Contactless economy: unexpected momentum and the future at hand

The extremely rapid transition from direct contact to contactless, due to the impact of the epidemic, has become a major problem globally. South Korea achieved an annual growth rate of 13.5% in the contactless market, the size of which is estimated to reach 292 trillion won by 2023.

The Korean government is focusing on development of non-contact services close to daily life, such as medical care, education, business, consumption, entertainment, logistics and distribution, information and security, transportation.

Vietnam is also moving towards a contactless economy. Vietnamese businesses and government agencies have initiated many activities to reduce many-touchpoints for the economy.

A recent survey by the Mobile Marketing Association shows that digital services have grown thanks to many first-time customers using online services for during the epidemic season.

The expansion of non-cash payment is one of the effective solutions to achieve the “dual goal”, both preventing and fighting epidemics, protecting the people’s health, and implementing solutions to remove difficulties for production and business, socio-economic recovery and development in the “new normal”.

The pandemic also accelerates the Government’s plan by 2030 to provide a variety of public services on different means of access (including mobile phones) and handle administrative records at all levels of government on the cybernetwork.

To deploy contactless technologies and services, people will need 5G networks featuring ultra-high connection speeds, ultra-low latency, and mobile edge computing. All three major mobile network operators in Vietnam, including Viettel, VinaPhone, and MobiFone, have deployed 5G networks in Hanoi, Ho Chi Minh City and a number of provinces and cities. With speeds 10 times higher than 4G, 5G is expected to solve more difficult data network problems, delivering faster experiences.

Dr. Nguyen Hoang Thuan, RMIT University, said: “The shift to online interaction of customers will push businesses to invest more in digitizing core processes. Now, many domestic enterprises see digitalization as the key to sustainable growth.”

Duy Anh



PM asks for drastic solutions to remove difficulties in production, business



Prime Minister Pham Minh Chinh has signed Official Dispatch No. 470/CD-TTg requiring ministries, sectors, and localities to continue drastically and effectively implementing tasks and solutions to remove difficulties for production and business.

PM asks for drastic solutions to remove difficulties in production, business hinh anh 1Illustrative photo (Photo:

Hanoi – Prime Minister Pham Minh Chinh has signed Official Dispatch No. 470/CD-TTg requiring ministries, sectors, and localities to continue drastically and effectively implementing tasks and solutions to remove difficulties for production and business.

Specifically, the PM asked ministers, heads of ministerial-level agencies, governmental bodies, and chairpersons of the People’s Committees of provinces and centrally-run cities to focus on tasks and solutions that help to remove difficulties and obstacles for production and business and create favourable conditions for businesses and people according to the Government’s Resolution No. 01/NQ–CP on key tasks and solutions to implement the plan on socio-economic development plan, State budget estimate, business environment improvement and national competitiveness in 2023, along with other decrees and resolutions.

The Ministry of Industry and Trade, the Ministry of Foreign Affairs, and relevant agencies were asked to effectively implement the signed Free Trade Agreements (FTAs) and step up negotiations and signing of new trade agreements, commitments, and associations, including the FTA with Israel, the UAE, and MERCOSUR to diversify markets, products, supply chains for Vietnamese products and goods, especially those with strengths, potential, and advantages.

The State Bank of Vietnam (SBV) continues to review and direct the commercial banking system to cut costs, apply digital transformation, strengthen effective management, reduce administrative procedures, and promote innovation to further reduce lending interest rates.

It is necessary to continue reviewing the disbursement of the credit packages of 40 trillion VND (over 1.7 billion) and 120 trillion VND with more flexible, feasible, and reasonable lending conditions. Meanwhile supervisions and inspections are needed to be strengthened to prevent policy profiteering and law violations.

The Ministry of Finance was asked to urgently examine, evaluate, and urge the General Department of Taxation to immediately handle dossiers for VAT refund by May 28; effectively implement policies on extension, exemption, and reduction of taxes, fees, charges, and land rents approved by competent authorities and continue to propose other support policies.

Ministries, agencies, and localities were asked to continue reviewing, inspecting, and cutting out unnecessary administrative procedures which increase costs, and cause troubles for people and businesses.

They need to actively deploy the application of digital transformation.

The Minister, the Chairman of the Government Office was asked to oversee the ministers, the heads of agencies, and chairpersons of the People’s Committees of the provinces and cities to seriously implement the PM’s directions and promptly report the results of tge implementation to the PM./.


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Vietnam’s GDP growth ranges 5.8 – 6.9% in 2023-24: int’l organizations



Vietnam may achieve an economic growth of 5.8 percent at least in 2023 and 6.9 percent at most next year, but there remain a lot of challenges to overcome, according to the predictions by many international organizations.

These forecasts were released Friday at the Government’s monthly meeting for May under the chair of Prime Minister Pham Minh Chinh, focusing on reviews of the socio-economic development in the past five months and set out tasks for the remaining months of the year.

In a report to the meeting, the Ministry of Planning and Investment said that international organizations continue highly valuing Vietnam’s economic growth prospects in 2023 as well as next year. 

The International Monetary Foundation (IMF) has forecasted that Vietnam may achieve GDP growths of 5.8 and 6.9 percent in 2023 and 2024, respectively, while the corresponding figures projected by the Organization for Economic Cooperation and Development (OECD), the Asian Development Bank (ADB) and the World Bank (WB) are 6.5 and 6.6 percent, 6.5 and 6.8 percent, and 6.3 and 6.5 percent.

However, the national economy will continue facing many complicated and unpredictable risks and fluctuations, which may come from the slow recovery of its major trading partners, and from the pressure of the global inflation that is assessed to be slowing down but still at high levels.

Among other challenges are the trend to tighten monetary policies in many countries to control inflation; the risk of disruption in global value chains; and problems related to energy security, food security, natural disasters, epidemics, and climate change.

Therefore, the ministry has proposed the government to adopt a number of solutions to support enterprises as well as people to help them overcome difficulties.

Over the past five months, the country’s macroeconomic conditions were kept stable and its inflation was under control thanks to the government’s timely policies and directions, despite the fact that the world economy has been facing complicated and unpredictable changes, said Minister Nguyen Chi Dung. 

The average consumer price index (CPI) in the past five months increased by 3.55 percent from a year earlier, while manufacturing and business activities continued to improve.

The index of industrial production (IIP) in May was estimated to increase by 2.2 percent from April and by 0.1 percent year on year.

Addressing the meeting, PM Chinh directed all relevant ministries and localities to take solutions to remove obstacles to enterprises’ operations, support exporters in searching and expanding new markets, continue improving administrative procedures, and promote application of science, technology, and digital transformation in economic activities. 

It is necessary to develop a resolution on improving the trade and investment environment, amending mechanisms and policies to attract foreign direct investment, and giving assistance to businesses that face difficulties, the PM requested. 

The government has recently sent 26 working groups to all 63 provinces and cities of the country, where they received more than 1,000 opinions and recommendations and resolved 300 recommendations on the spot, the Vietnam News Agency cited PM Chinh as saying.

The government’s chief requested all relevant ministries take effective measures to support exporters, expand export markets and make the best use of the domestic market.

The Ministry of Finance was required to carry on effectively implementing tax exemption, reduction and extension policies, extending  deadlines for excise tax payment, and speeding up VAT refund, among other tasks.

The PM also asked the State Bank of Vietnam to continue reducing lending interest rates, restructure the loan repayment terms, keep the foreign currency market stable, and effectively manage the exchange rates.

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Vietnam, Italy develop SMART platform to expand online trade connectivity



The Italian Trade Agency in Vietnam announced on May 26 that it has teamed up with the Italian Ministry of Foreign Affairs and International Cooperation and the General Confederation of Italian Industry to set up the ASEAN Education and Business Programme (VELP 2023).

Vietnam, Italy develop SMART platform to expand online trade connectivity hinh anh 1Illustrative image (Photo: VNA)

HCM City – The Italian Trade Agency in Vietnam announced on May 26 that it has teamed up with the Italian Ministry of Foreign Affairs and International Cooperation and the General Confederation of Italian Industry to set up the ASEAN Education and Business Programme (VELP 2023).

VELP 2023,, is a useful portal built on the SMART 365 platform to facilitate direct and reliable connections between Vietnamese businesses seeking partners or suppliers in Italy.

Through VELP 2023, the two countries can access updated information on a greater number of firms, particularly small and medium-sized enterprises operating in various fields, including agricultural machinery and equipment, environment, mechanical engineering and renewable energy.

As a powerhouse in industry and machinery, Italy specializes in providing a wide range of high-quality products and advanced technological solutions. Currently, many Italian investors in the manufacturing industry are doing business successfully in Vietnam, namely Bonfiglioli (power transmission and gear motors), Piaggio (mechanical engineering and motorcycles), Danieli (steel production), Datalogic (barcode readers, sensors, mobile devices), Ariston (water heaters and energy equipment), ENI (oil and gas), and ENEL Green Power (renewable energy).

Since the establishment of diplomatic ties five decades ago and bilateral strategic partnerships a decade ago, Vietnam and Italy have become important partners in various fields.

Vietnam is now the biggest trade partner of Italy in ASEAN while Italy is the fourth largest trade partner of Vietnam in the EU. More and more Vietnamese and Italian firms are showing interest in each other’s markets and working to seek ventures in various areas./.


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