From Cash to Digital Wage Payments in Vietnam

This publication assesses the awareness, use and acceptance of digital wage payments among enterprises and workers in Vietnam. The resulting study includes an analysis of the financial behaviors and attitudes of Vietnamese workers, the benefits and challenges for enterprises to move from cash to digital wage payments, and an assessment of the effect of digital wage payments on the financial inclusion of the workers, with a specific attention to female workers.

Key findings from the study include:

• Factory workers’ financial attitudes and behaviors:
  • In Vietnam, women hold the bulk of responsibilities in the household.
  • Savings behavior is not a consistent practice.
  • While most workers recognize the convenience of digital payments, more than 75 percent of expenses are still paid for in cash.
• Perceptions and use of financial institutions:
  • Generally, workers have positive perceptions of financial institutions.
  • Most workers who do have an account use it only to receive wage payments and simply withdraw cash funds at an ATM on payday.
  • Lack of familiarity and knowledge, limited understanding of the costs of using digital financial services, and limited accessibility were identified as the primary barriers to use of digital financial services.