Vietnam joins Southeast Asia's initiative on cross-border payments

Vietnam will collaborate with Singapore, Indonesia, Malaysia, Thailand, the Philippines, and other nations to connect their individual payment systems, including by implementing the QR (quick response) code system for retail transactions.

The agreement was reached in Jakarta during a gathering of the central bank governors and finance ministers of the Association of Southeast Asian Nations' (ASEAN) 10 members.

Additionally, Malaysia, Thailand, and Indonesia have agreed to facilitate future cross-border financial asset transactions for local currency government bonds and stocks.

"We are not only promoting trade and investment, but also our resilience toward global uncertainty of the exchange rate, of the Fed," said Perry Warjiyo, governor of Bank Indonesia, during a press conference.

Indonesia has already linked its payment system with Thailand and Malaysia using QR codes and plans to connect with Singapore later this year.

The State Bank of Vietnam partnered with ASEAN5 Central Banks to become the third member of the MOU on regional payment connectivity cooperation, demonstrating its commitment to cooperation and integration in the payment field.

The initiative aims to promote cross-border payment transactions in the ASEAN region, aligning with the Group of 20's roadmap. It will expand member networks to facilitate connectivity with other countries.

Vietnam's MOU participation aims to boost trade, investment, tourism, and post-pandemic recovery for domestic enterprises.

ASEAN, a group of more than 600 million people, has been hampered for years in its attempts to integrate its economies, worth a total of $2.3 trillion, via trade, investment, and market connectivity, as well as harmonised standards and customs processes.

Source: Vietnam News Agency, Reuters