The State Bank of Vietnam, together with the Bank of the Lao PDR, announced a framework to expand the use of local currencies in bilateral payments and formally launched a Vietnam–Laos cross-border QR-code retail payments connection. The initiatives are positioned to support payments, remittances, trade, investment and borrowing between the two countries, including lower-cost transactions by reducing reliance on a third currency for FX conversion. Supporting steps implemented in 2024 include the State Bank of Vietnam’s Circular 04/2024/TT-NHNN guiding bilateral payments and remittances with Laos and enabling all Vietnamese commercial banks to conduct local-currency settlement with Laos, alongside the Lao central bank’s licensing of commercial banks to act as designated currency trading organisations (ACCD) between the two markets. For local-currency payments, the Bank of the Lao PDR also granted participation licences to Lao-Viet Joint Venture Bank and Vietcombank Laos. The QR link, developed since 2023 through the National Payment Corporation of Vietnam (NAPAS) and Lao National Payment Network (LAPNet) with participating banks, has completed connectivity for the direction of Vietnamese customers paying for goods and services in Laos; Vietnam’s phase 1 participants are VietinBank (settlement bank), Sacombank, BIDV, Vietcombank, BVBank, Nam A Bank and TPBank, while Lao participants include VietinBank Laos (settlement bank), BCEL, APB, JDB, LVB, MJB, PSV, Sacombank Laos, STB, ACLEDA Bank Laos, BIC, IDB, VMB and LDB. Further work is planned to complete service delivery over time, and both sides agreed to encourage businesses to use local currencies in bilateral trade and investment, including initial encouragement for groups and state-owned corporations to consider denominating cross-border trade and investment contracts in local currency.
State Bank of Vietnam 2025-01-10
State Bank of Vietnam launches Vietnam–Laos local-currency payment framework and cross-border QR retail payments link
The State Bank of Vietnam and the Bank of the Lao PDR have launched a framework to expand local currency use in bilateral payments and a Vietnam–Laos cross-border QR-code retail payments connection. These initiatives aim to support payments, remittances, trade, investment, and borrowing between the two countries by reducing reliance on a third currency. Supporting measures include regulatory guidance, licensing for local-currency settlements, and QR connectivity for Vietnamese customers in Laos.