The Bank of the Lao PDR, together with the Lao National Chamber of Commerce and Industry, held a policy dissemination meeting to promote the use of local currencies, the Lao kip and Vietnamese dong, for payment of goods and services between Laos and Vietnam. The initiative aims to broaden settlement options for businesses, lower transaction costs, and reduce demand pressures for foreign currency that can affect both countries’ foreign exchange reserves. The meeting in Vientiane on 14 March 2025 gathered more than 140 participants, including representatives from Bank of the Lao PDR departments, relevant ministries, the Embassy of Vietnam in Laos, the Lao Bankers Association, commercial banks offering kip–dong cross-currency payment services, and Lao–Vietnam business units. Participants were briefed on operational guidance for cross-currency transactions under Instruction No. 444/BoL dated 27 January 2025 and on Bank of the Lao PDR-authorised kip–dong products from Lao-Viet Joint Venture Bank and Vietcombank Laos, including preferential policies such as lower transaction fees than for other currency settlements. Views raised during the session are expected to feed into further work by the responsible committee to continue developing measures that support kip–dong settlement for bilateral trade and investment payments.
Bank of the Lao 2025-03-14
Bank of the Lao PDR briefs stakeholders on policy to expand Lao kip and Vietnamese dong settlement for bilateral payments
The Bank of the Lao PDR and the Lao National Chamber of Commerce and Industry held a policy meeting to promote using the Lao kip and Vietnamese dong for bilateral trade payments, aiming to lower transaction costs and reduce foreign currency demand. Over 140 participants, including commercial banks and business units, were briefed on operational guidance and preferential policies for kip–dong transactions. Feedback from the session will inform efforts to enhance cross-currency settlement measures.