The State Bank of Vietnam (SBV) has signed an MoU on cooperation in regional payment connectivity with the central banks of ASEAN5 member countries, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand.

The signing took place on August 25 on the sidelines of the 10th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM 10) in Jakarta, Indonesia.

Another MoU was signed by the governors of ASEAN5 central banks on November 14, 2022 in Bali, Indonesia, on the sidelines of the G20 Leaders’ Summit. Under this agreement, the governors committed to enhance cooperation in payment connectivity through the development of faster, cheaper, more transparent, and more inclusive cross-border payments, ensuring the rights and interests of users.

Governors also agreed to promote cross-border payment connectivity under the MoU, on the basis of the application of payment methods such as QR codes, instant payments, and other payment models, and to cooperate in monitoring and building a sound risk management mechanism in line with the legal frameworks of member countries. Mechanisms for implementing the MoU include dialogue, monitoring, evaluation, and information exchange.

Meeting participants also highly appreciated the Working Group on the ASEAN Payments System (WC-PSS) initiative from the ASEAN5 central banks and encouraged the participation of other ASEAN members.

Appreciating the potential benefits and opportunities from the initiative, the SBV has been coordinating with other ASEAN5 central banks to complete procedures to officially become the sixth signatory to the MoU. Signing the agreement demonstrates the SBV’s commitment to cooperation and integration in the payments field, in line with the orientations of the government and the central bank and the current trend of promoting cross-border payments.

The SBV believes that participation in this MoU will be a driving force to promote the development of trade, investment, tourism, and many other economic fields, contributing to supporting the post-pandemic economic recovery process at domestic enterprises, especially small and medium-sized enterprises (SMEs).