Vietnam - The Role of Postal Networks in Expanding Access to Financial Services Country case : Vietnam's postal finance services

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.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2004-01-01
Subjects:	ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICE, ACCESS TO FINANCIAL SERVICES, ACCESS TO TELEPHONE, ACCOUNT HOLDERS, ACCOUNTING, AMOUNT OF FUNDS, ASSET MANAGEMENT, ATM NETWORKS, BANK BRANCHES, BANK PAYMENT, BANKING SERVICES, BANKING SYSTEM, BANKING SYSTEMS, BANKS, BUSINESS PLAN, BUSINESS PLANNING, BUSINESS VOLUMES, CASH PAYMENT, CASH PAYMENTS, CASHLESS TRANSACTION, CITY MAIL, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIALIZATION, COMPETITIVE BIDDING, COOPERATIVES, CORPORATE DEPOSITS, CREDIT ASSOCIATION, CREDIT ASSOCIATIONS, CREDIT INSTITUTION, CREDIT INSTITUTIONS, CREDIT POLICY, CREDIT SCHEMES, CREDIT TRANSFERS, CUSTOMER PROFITABILITY, DEBIT CARDS, DEBT, DECISION-MAKING, DELIVERY OF MAIL, DEPOSIT, DEPOSIT MOBILIZATION, DEPOSITORS, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DIRECT CREDIT, DISTRICT POST OFFICES, DIVERSIFICATION, DOMESTIC MONEY ORDERS, E-COMMERCE, E-GOVERNMENT, E-MAIL, ECONOMIC GROWTH, ELECTRONIC FUNDS, ELECTRONIC TRANSFER, ELECTRONIC TRANSFER OF FUNDS, EQUAL TREATMENT, EXCLUSION, EXPENDITURE, EXPENDITURES, EXPRESS MAIL, EXPRESS MAIL SERVICE, FARMERS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL MARKET, FINANCIAL RELATIONSHIP, FINANCIAL RESPONSIBILITY, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SUSTAINABILITY, FIXED COSTS, FORMAL CREDIT, FORMAL FINANCIAL SECTOR, GOVERNMENT BONDS, GOVERNMENT POLICIES, GROUP LENDING, GUARANTEE REQUIREMENTS, HOLDING, HOUSEHOLD DEPOSITS, HOUSEHOLDS, HUMAN RESOURCE, HUMAN RESOURCES, INFORMATION TECHNOLOGY, INSURANCE, INTEREST RATE, INTEREST RATES, INTERNATIONAL MONEY ORDERS, INTERNATIONAL POSTAL, INVESTMENT REQUIREMENTS, JOINT STOCK COMPANIES, JOINT VENTURES, LACK OF COLLATERAL, LEGAL FRAMEWORK, LETTERS, LIFE INSURANCE, LIMITED ACCESS, LOAN, LOAN GUARANTEE, LOAN PORTFOLIO, LOAN SIZE, LOAN SIZES, LOCAL CURRENCY, MAIL BUSINESS, MAIL DELIVERY, MAIL FLOW, MAIL PROCESSING, MAIL SERVICES, MAIL SORTING, MAIL SORTING CENTERS, MAIL VOLUME, MARKET ECONOMY, MARKET SHARE, MARKETING, MFI, MFIS, MICRO FINANCE, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MICROFINANCE LENDING, MONEY ORDER, MONEY ORDERS, MONEY TRANSFER, MONEY TRANSFERS, MONEYLENDERS, NATIONWIDE POSTAL NETWORK, NON-PERFORMING LOAN, NUMBER OF POST OFFICES, OPERATIONAL COST, OUTREACH, OVERDRAFTS, PARCELS, PAYMENT SERVICES, PAYMENT SYSTEM, PAYMENTS SERVICE, PAYMENTS SERVICES, PENSIONS, PEOPLES, PERSONAL COMPUTERS, POINT-OF-SALE, POST, POST OFFICE, POST OFFICE NETWORK, POST OFFICE STAFF, POST OFFICES, POSTAL, POSTAL AGENCIES, POSTAL BANK, POSTAL BANKING, POSTAL BANKS, POSTAL COUNTERS, POSTAL FINANCE, POSTAL FINANCIAL SERVICES, POSTAL MONEY ORDERS, POSTAL NETWORK, POSTAL NETWORKS, POSTAL OUTLETS, POSTAL PAYMENT, POSTAL POLICY, POSTAL RATES, POSTAL SAVING, POSTAL SAVINGS, POSTAL SAVINGS BANKS, POSTAL SECTOR, POSTAL SECTOR DEVELOPMENT, POSTAL SERVICE, POSTAL SERVICES, POSTAL STAFF, POSTAL SYSTEM, POSTAL SYSTEMS, POSTAL TARIFFS, POSTS, PRIVATE CREDIT, PRIVATE FINANCIAL INSTITUTIONS, PRIVATIZATION, PRIVILEGED ACCESS, PTT, PUBLIC POSTAL OPERATOR, PUBLIC SERVICE, QUALITY OF SERVICE, QUALITY SERVICE, REMITTANCE, REMITTANCES, RETAIL BANKING, RISK CONTROL, RISK MANAGEMENT, RURAL ACCESS, RURAL CREDIT, RURAL CREDIT COOPERATIVES, SAVINGS ACCOUNT, SAVINGS ACCOUNTS, SAVINGS BANK, SAVINGS BANKS, SAVINGS INSTITUTION, SAVINGS INSTITUTIONS, SAVINGS MOBILIZATION, SAVINGS PRODUCTS, SAVINGS SERVICE, SAVINGS SERVICES, SETTLEMENT, SMALL ENTERPRISES, SMALL LOAN, START-UP, STATE BANK, TECHNICAL SUPPORT, TELECOMMUNICATIONS, TELECOMMUNICATIONS EQUIPMENT, TELEPHONE SERVICE, TRADING, TRADITIONAL POSTAL MONEY ORDER, UNIFORM TARIFF, UNION, UNIVERSAL POSTAL, UNIVERSAL POSTAL UNION, UPU, URBAN AREAS, VILLAGES, VOUCHERS, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2004/01/16338291/vietnam-role-postal-networks-expanding-access-financial-services-country-case-vietnams-postal-finance-services https://hdl.handle.net/10986/14328
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