According to Vice Chairman of Hanoi Municipal People’s Committee Ha Minh Hai, in the context of international integration and the boom of the fourth Industrial Revolution 4.0, the development of smart cities is not only an inevitable trend but also an urgent need for the growth of modern urban areas. Smart cities not only address issues related to population growth and urbanisation pressures but also provide effective solutions to problems concerning the environment, transportation, natural resource, and energy management.
As a unit guiding the development of "payment digitalisation" to support Hanoi in building a smart city, Nguyen Hoang Long, Deputy General Director of Vietnam National Payment Joint Stock Company (NAPAS), stated that they are steering the development of "payment digitalisation" to support Hanoi as well as other provinces and cities in building smart cities.
Smart transportation is one of the key areas where Hanoi has applied smart payment to address management and operational challenges. The implementation of smart parking with cashless payment systems is a prime example in this field. As of September 2024, Hanoi has successfully established 102 cashless payment points in districts such as Hoan Kiem, Cau Giay, and Ba Dinh. This system not only allows residents to easily pay service fees via bank cards, QR codes, or e-wallets but also helps the city track and manage revenue from parking lots in a transparent and effective manner.
Since its implementation, the system has recorded over 550,000 transactions, collecting more than 57 billion VND in total. Additionally, expanding smart payment applications to the transportation sector not only enhances management efficiency but also significantly improves the experience of citizens using public transport services. The electronic ticketing system for public vehicles like buses and trains has been actively being implemented by the city, allowing residents to quickly and conveniently access services without using cash.
In fact, some banks in Vietnam have pioneered integrating services with suppliers, opening new directions for the financial sector. However, despite the potential to bring many practical benefits to citizens and businesses, the development of the banking ecosystem towards an open banking model still faces several challenges regarding security and data management issues, common standards, and more. Therefore, to strongly promote the development of open banking, experts believe that it is necessary to continue perfecting the legal framework, upgrading technology infrastructure, and ensuring data security and privacy.
Moreover, the development of smart cities is not only limited to technology and technical factors but is also closely linked to institutional, legal, and management method changes. Especially in a city like Hanoi, with a large economy and population, these challenges must be carefully considered to ensure comprehensive development.
