Since 2020, Da Nang Urban Environment Joint Stock Company has planned to convert to cashless garbage collection for nearly 200,000 customers, but due to the Covid-19 pandemic and consecutive natural disasters, it has been affected and is now restarting.
Automatic monthly account deduction
The company has coordinated with the 1022 Public Service Hotline to propagate and send notices instructing on paying for garbage via bank transfer, e-wallet... but the results are still low.
Determining that asking the bank to collect on behalf of the company is the optimal solution, recently the company has been persuading customers to switch to a payment method that combines banks, e-wallets, and automatic monthly account deductions.
According to statistics, in the group of 3,869 corporate and business customers, 67% agreed to the new payment method (2,499 customers), the remaining 33% disagreed and did not provide an account.
Currently, manual garbage collection is still the majority.
Of the 9,883 business households, 2,413 agreed to pay for garbage without cash (28%), while the remaining 72% disagreed and did not cooperate.
The largest number is 151,350 households that do not do business; only 1,099 households (ie only 0.72%) cooperated but only 213 households provided accounts for automatic collection, the rest promised to pay online but did not actually do so.
Thus, initially, Da Nang City Urban Environment Joint Stock Company only received the cooperation of 6,011 customers for bank collection, 2,178 customers paid online with an amount of nearly 10.3 billion VND.
The rate of customers agreeing to pay without cash is only 27% of the households that have signed contracts and changed payment methods.
Da Nang Urban Environment Joint Stock Company also focuses on the customer group of cadres, civil servants, and public employees with available accounts, who are highly in agreement with the city's digital transformation policy. However, the results are not positive.
For example, at the Da Nang City Administrative Center, some departments implemented it but the staff did not agree to change the payment method. The company only received a few dozen contracts from the departments and building management departments.
At 6 district administrative centers, the number of officials who agree to pay for garbage without cash is not much, only a few dozen contracts/unit, and there are even some cases of no response.
According to Ms. Vo Thi Huynh Trang, Deputy General Director of Da Nang City Urban Environment Joint Stock Company, most people want to pay in cash because the garbage fee is low, bank transfer is inconvenient... showing that the biggest obstacle comes from people's psychology.
"It is extremely difficult to get customers to voluntarily pay for garbage without using cash, because there are no sanctions, unlike the electricity and water industry (if they do not pay, the service will be cut off). Due to the nature of the environmental industry, even if people do not pay for garbage, it will not be "affected", they will still dump garbage on the street and the company still has to collect it, not letting garbage accumulate on the street causing environmental pollution and losing the urban beauty", said Ms. Vo Thi Huynh Trang.
In addition, many households do not use accounts, many customers are uncooperative, overreact, and are offensive to staff.
Mobilizing pioneering cadres
"The optimal solution is to ask the bank to collect and deduct from the customer's account. To do this, the prerequisite is to have account information. The unit works hard but the results are still very low because the customer is not cooperative and is afraid to provide it. Even the staff is not enthusiastic, making many appointments," Ms. Vo Thi Huynh Trang shared.
Currently, the group of civil servant customers is very large but there are only a few hundred customers in administrative centers.
Moving towards cashless garbage collection is the trend and direction of Da Nang City.
Ms. Vo Thi Huynh Trang acknowledged that some banks have been very enthusiastic in accompanying the unit in collecting money on behalf of others. The amount of money is small, periodic reconciliation is very difficult, business efficiency is not high... but the bank still supports for the common goal of digital transformation.
"The Urban Environment Joint Stock Company proposed that the Department of Natural Resources and Environment advise the People's Committee of Da Nang City to propagate to departments, branches, and mobilize pioneering cadres to pay for garbage without using cash to support the city's digital transformation policy. Next, the company will deploy to wards, communes, residential groups, and villages to implement and pay funds to mobilize local forces to participate in the campaign," Ms. Vo Thi Huynh Trang expressed.
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