Mobile Money paves the way for new services to be tested in a "sandbox."

The sandbox is a controlled institutional framework that is used to test new technologies, products, services, and business models. It is a setting in which technology companies can test new technological apps and business models. Following the trial period, management agencies will evaluate the trial implementation and decide whether to accept or reject it.

It is difficult to use laws to establish rules for dealing with new issues that arise from the application of new technologies. The apps may have such a rapid impact on society that management systems may be unable to keep up.

Many traditional business fields have changed, and businesses must now rely on technology to operate more efficiently. Because policies tend to lag behind practice, it is impossible to manage new services and business models within the existing framework. As a result, a sandbox is a prudent approach.

“It is impossible to expect state management agencies to develop long-term policies. Many countries use sandbox policies to encourage enterprises to develop new business models while imposing certain deployment constraints,” said Nguyen Trung Chinh, president of CMC.

“Sandbox is the embodiment of the principle ‘businesses can do what is not prohibited by law,'” he explained.

The Prime Minister has ordered the pilot implementation of Mobile Money services, which allow people to pay for small-value goods and services using their telecom accounts. The pilot program will be in place for two years.

This is the first time the government has used the sandbox mechanism to manage multiple ministries and branches.

The government hopes that the service will help to develop non-cash payments and promote access to and use of financial services, particularly in rural and mountainous areas.

In accordance with current laws, businesses can only provide Mobile Money to remit money and make payments for legal goods and services in Vietnam.

Mobile Money is only available for domestic transactions, with a monthly transaction limit of VND10 million.

Vietnam is not the first country to accept a new technology platform, but experts say it has an advantage because it has learned from predecessors.

Payment platforms must reach 100% of the population in order to popularize certain services. There is no other way to do this better than with Mobile Money.

The proportion of credit card users in Vietnam remains low, but mobile subscriber density is extremely high. Ninety-nine percent of transactions with a value of less than VND100,000 are conducted in cash. Mobile Money will be a powerful tool for encouraging non-cash payments in society.

Nguyen Manh Hung, Minister of Information and Communications, stated that Mobile Money is a compelling example of how telecom carriers can become platforms for many things other than telecom infrastructure. They have the potential to become data, computing, digital content, authentication, IT services, and IoT platforms.

According to Nguyen Son Hai, Deputy CEO of VNPT Media, Mobile Money will lead Vietnamese to become digital citizens and develop a digital society.

“Mobile Money is the first sandbox to be piloted to meet the needs of society, involving many ministries and sectors. It paves the way for more sandboxes to be used in the future for other new services and business models."