Vietnam and Laos launch framework for local currency settlement and cross-border QR code payment connectivity

Under the leadership of the leaders of the Parties and the Prime Ministers of the two countries, the SBV and the BOL, together with the commercial banks of Vietnam and Laos had actively coordinated to promote the use of the local currencies in payment transactions, money transfers, investment and credit relations between the two countries, through the two initiatives/projects, i.e. the bilateral retail payment connectivity using QR code, and the development of a framework to promote the use of local currencies in payment transactions and money transfers for bilateral trade, investment and credit relations.

Based on the reliable and comprehensive cooperation between Vietnam and Laos, the promotion of the use of local currencies in payment transactions and money transfers for trade, investment and credit relations between Vietnam and Laos is expected to bring about practical benefits to both sides, providing the two countries’ businesses with more options for transaction currencies and reducing their operating costs, thereby creating more favorable conditions for the businesses to access capital resources in local currencies, especially for Vietnamese companies and investors in the Lao P.D.R.

SBV Deputy Governor Pham Tien Dzung speaks at the ceremony

At the ceremony, SBV Deputy Governor Pham Tien Dzung reviewed the positive results achieved by the two central banks on local currency settlement cooperation in 2024, including the promulgation and improvement of the related legal frameworks in the two countries, including Circular No.04/2024/TT-NHNN dated May 31, 2024 of the SBV providing guidance for the bilateral payment and money transfers with the Lao P.D.R., which allows all Vietnamese commercial banks to implement the payment relations using the local currencies with the Lao P.D.R., and the Decisions of the BOL Governor granting licenses to the commercial banks to act as Appointed Cross Currency Dealers (ACCD) for the local currency settlement between Vietnam and Laos.

BOL Deputy Governor Soulysak Thamnuvong hands over the Licenses for participating in the local currency settlement to the banks

Also at the ceremony, under the witness of the Prime Ministers of the two countries, BOL Deputy Governor Soulysak Thamnuvong handed over the BOL Governor’s Licenses to the Lao-Viet Joint Venture Bank and Vietcombank Laos to participate in the local currency settlement. With the improved legal frameworks and infrastructure in the banking sectors for the settlement and money transfers between Vietnam and Laos recently, the two sides had agreed to encourage the businesses to use their local currencies in trade and investment activities between the two countries.

Also at the ceremony, the Prime Ministers, Deputy Prime Ministers, and leaders of several Ministries and agencies of the two countries joined a button-pressing ceremony to officially launch the retail payment connectivity service using QR codes. This project is expected to promote the bilateral tourism, consumption, and people-to-people exchanges between the two countries, encouraging the use of the local currencies in the bilateral retail payments.

The Prime Ministers, Deputy Prime Ministers, and leaders of several Ministries and agencies of the two countries pressed the buttons to officially launch the retail payment connectivity service using QR codes

The cross-border payment connectivity service using QR codes aims at providing a cheaper, faster, safer and more convenient payment means to the people, visitors and traders in both countries. It is the outcome of the SBV-BOL cooperation since 2023 through the National Payment Corporation of Vietnam (NAPAS), the Lao National Payment Network Company Limited (LAPNet), as well as the commercial banks, by now, the two sides have completed the payment connection for Vietnamese customers when purchasing goods and services in Laos.

HY