To promote cross-border payment connectivity within the region and globally, and to meet the needs of individuals and businesses for fast, secure, and convenient transactions, it is necessary to establish a comprehensive legal framework, synchronized modern technical infrastructure, sustainable and secure payment technology platforms, and stronger inter-sectoral coordination and international cooperation.
Cross-border payment connectivity is an inevitable trend and an objective practical demand to meet the payment needs of individuals and businesses in the context of international integration and the Government’s orientation toward developing a digital economy and digital society. To foster such connectivity, synchronized modern technical infrastructure, a complete and secure legal framework, inter-sectoral coordination, and extensive international cooperation are all required.
Illustrative image (Source: Internet)
Cross-border payments are financial transactions in which the payer and the recipient are located in different jurisdictions (countries), involving different currencies and specialized processes (such as foreign exchange settlement procedures).
Meeting the payment needs of individuals and businesses in the context of international integration
Speaking at the seminar “Cross-Border Payments and Online Lending: Digital Utilities for Business and Consumption” organized by Lao Dong Newspaper on September 11, 2025, Mr. Pham Anh Tuan, Director General of the Payment Department of the State Bank of Vietnam (SBV), affirmed that cross-border payment connectivity is an inevitable trend and an objective necessity to meet the payment needs of individuals and businesses in the context of international integration and the Government’s orientation toward a digital economy and digital society. To promote connectivity, synchronized modern technical infrastructure, a complete, secure legal framework, inter-sectoral coordination, and extensive international cooperation are required.
There are two forms of connectivity: First, bilateral connectivity: linking the payment systems of two countries; Second, multilateral connectivity: including international payment systems and cross-country payment projects such as Nexus (ASEAN-5), P27 (Northern Europe), and mBridge.
At present, bilateral connectivity is prioritized globally, focusing mainly on retail, while emphasizing unified technical standards, legal improvements, and system safety.
Legal framework for cross-border payments
The legal corridor for cross-border payments is stipulated in the Law on Credit Institutions (Article 11: Organization and participation in payment systems by commercial banks); the Ordinance on Foreign Exchange (Article 6: Liberalization of current account transactions and Article 7: Payments and money transfers related to the import and export of goods and services); and relevant guiding documents.
Additionally, on May 15, 2024, the Government issued Decree No. 52/2024/ND-CP on Non-Cash Payments (NCP). This Decree establishes a legal framework for banks and foreign bank branches to participate in international payment systems (Article 5: Foreign currency payments and international payments).
At the seminar, Ms. Nguyen Thi Thu, Deputy Director General of the Payment Department, SBV, highlighted the implementation of QR code payment connectivity. In recent years, SBV has cooperated with central banks and regulators of several regional countries - Thailand, Cambodia, Laos, China, South Korea, Singapore - to implement bilateral retail QR code payment connectivity.
Currently, SBV has officially implemented three bilateral retail QR code payment connections with Thailand, Cambodia, and Laos, while researching further cooperation with China, Singapore, and South Korea. In the near future, expansion is expected with India, Taiwan, and Malaysia.
Regarding bilateral domestic card payment connectivity, Vietnam has completed connections with some countries through Vietnam’s card switching organization (NAPAS) and counterparts in the Asia Payment Network (APN), including KFTC (Korea), PayNet (Malaysia), ITMX (Thailand), and UnionPay (China).
Participation of Payment Service Providers in International Networks
Most Vietnamese banks are members of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), with 87 banks and foreign bank branches currently participating. Additionally, to process cross-border payment transactions, banks also join other international systems such as:
(i) International card organizations (Visa, MasterCard, JCB, UnionPay, AMEX, Discovery Card);
(ii) Acting as agents for cross-border money transfer networks (MTOs) such as MoneyGram, Western Union, and Wise.
International cooperation – Building coordination mechanisms for cross-border payment safety
Although cross-border payments bring many benefits to individuals and businesses in each country, aligning with fintech development, global integration, trade cooperation, and digital transformation, they also face numerous challenges.
First, in terms of policy and legal frameworks, each country has different regulations on currency, payments, anti-money laundering, and data protection. Time zone differences may also cause delays, as banking system operating hours differ across countries. Exchange rate volatility impacts transaction profitability, costs, and foreign exchange risk management.
Second, technological challenges arise as new payment systems require significant investment and rigorous security testing. Differences in technical standards—such as inconsistent QR code standards and connectivity protocols—create further obstacles.
Third, complex transaction structures: cross-border payments often involve multiple banks, financial institutions, and partners, requiring resource-intensive coordination.
Moreover, cybercrime is becoming increasingly sophisticated on a global scale, while establishing and maintaining interoperability among different payment systems can be costly, especially for incomplete systems.
At the seminar, Mr. Pham Anh Tuan stated that in the future, as the state management agency in the fields of currency and banking, the SBV will continue to implement comprehensive policies and solutions to promote cross-border payment connectivity regionally and globally, ensuring fast, secure, and convenient payment services for individuals and businesses.
Accordingly, the SBV will continue guiding and implementing Decree No. 52/2024/ND-CP, including participation in international payment systems; as well as executing tasks and solutions under Decision No. 234/QD-NHNN dated February 19, 2024, which approves the Strategy for Developing Vietnam’s Payment Systems to 2030.
The SBV also directs payment service providers to expand bilateral retail payment connectivity with India, Taiwan, Malaysia, Indonesia, etc., to meet cross-border payment and remittance needs (for tourism, healthcare, education, shopping, etc.). Vietnam’s Financial Switching and Electronic Clearing System will be upgraded to meet technical standards supporting cross-border payments.
Particularly, as international connectivity expands, cybersecurity and data protection challenges grow more complex due to the integration of multiple systems with varying security standards. The SBV and Vietnamese financial institutions must strengthen international cooperation, proactively share cybersecurity intelligence, and develop cross-border emergency response mechanisms.
The SBV and payment service providers will further enhance communication and improve awareness of bilateral QR code payment acceptance points.
On the side of payment service providers, investment in infrastructure and IT applications is needed to upgrade and improve Vietnam’s payment systems and expand connectivity with international systems, while broadening payment acceptance networks.
Credit institutions must continue upgrading security infrastructure, regularly updating new technological solutions, and establishing AI-powered cybersecurity monitoring systems. Within each institution, fostering a data security culture - where all staff recognize and bear responsibility for customer privacy - is essential, along with regular system-wide training on cybersecurity and data protection.
Additionally, overcoming cross-border payment challenges requires international cooperation to build common standards, harmonize legal regulations, and develop sustainable, secure, and efficient payment technology platforms. Countries must coordinate toward a robust legal framework for personal data protection (such as GDPR), comply with international standards, strengthen intelligence sharing on cyber risks, and establish cross-border emergency response mechanisms.
HT