Cross-border payments are about to get a tech-driven boost between the Chinese mainland and Vietnam.
Building a Shared QR Code Network
On April 15, the Industrial and Commercial Bank of China (ICBC) teamed up with UnionPay International, Vietnam National Payment Corporation (NAPAS) and Vietnam Bank for Foreign Trade (Vietcombank) to sign the Quadrilateral Cooperation Agreement on China-Vietnam QR Code Retail Payment Interoperability. Under the guidance of the People's Bank of China and the State Bank of Vietnam, this landmark pact paves the way for seamless local currency settlements and stronger financial connectivity.
Everyday Convenience, Local Currencies
Once integrated, consumers from both markets will enjoy new payment options. Visitors from the Chinese mainland can pay at participating Vietnamese merchants by scanning VietQR codes with UnionPay wallets. Meanwhile, residents of Vietnam can use VietQR wallets to settle bills at UnionPay QR code terminals on the Chinese mainland. No more currency exchanges or US dollar conversions at every turn.
Reducing Risk, Driving Trade
By prioritizing local currencies, the collaboration curbs reliance on the US dollar, boosting financial resilience and economic sovereignty. The project is highlighted in the China-Vietnam joint statement and falls under the purview of the financial and monetary cooperation working group, which promotes policy regulation dialogue and sector reform.
Looking Ahead
This QR code interoperability initiative aligns with the Belt and Road Initiative and the Two Corridors and One Circle framework. As digital payment networks converge, it promises smoother cross-border spending, deeper trade ties and richer people-to-people exchanges across this key regional partnership.
Reference(s):
cgtn.com
