Publication: Vietnam - The Role of Postal Networks in Expanding Access to Financial Services Country case : Vietnam's postal finance services
Date
2004-01-01
ISSN
Published
2004-01-01
Author(s)
World Bank
Abstract
This paper discusses the role of the
postal network in expanding access to financial services in
Vietnam. It reviews the public postal operator within the
postal sector and within the broader context of the
communications sector. The roles of the Vietnam postal
network and post bank are also reviewed from the perspective
of the financial sector development, with particular focus
on payments systems development and micro finance. While
this country case on Vietnam can stand alone, it is an
integral part of this large study of the potential of postal
networks to coordinate with financial service providers in 7
countries (Egypt, Kazakhstan, Namibia, Romania, Sri Lanka,
Uganda, and Vietnam) and 5 regions (Africa, Asia, Eastern
Europe and Central Asia, Latin America and the Caribbean,
and the Middle East and Northern Africa). Five years after
its introduction, the Vietnamese Postal Savings Corporation
(VPSC) can look back on an impressive record of successes.
With its 920 post offices (of 3,000), VPSC operates the
second-largest financial service network in the country. It
developed as a channel for mobilizing small household
deposits, nearly 400,000 individuals keep accounts with the
VPSC, and it has mobilized about 1 percent of the
nation's savings. It has also pioneered modern cashless
payment services, and provides payroll and card-based
services. The next step in its development is the
integration of the postal payment services into its
operations. However, after an initially fast growth track,
VPSC currently faces increasing stagnation in its growth,
mainly due to government limitations on its institutional
and regulatory framework. Changes are required to enable
sustainable growth of VPSC and including the post offices in
its provision of low-threshold access to basic financial services.
Link to Data Set
Citation
“World Bank. 2004. Vietnam - The Role of Postal Networks in Expanding Access to Financial Services Country case : Vietnam's postal finance services. © Washington, DC. http://hdl.handle.net/10986/14328 License: CC BY 3.0 IGO.”