Central Bank Vietnam Officially Joins ASEAN Payment Connectivity

The Central Vietnamese Bank building was seen in Hanoi, Vietnam. (Photo: Special)

The State Bank of Vietnam (SBV) is said to have agreed to join the payment connectivity cooperation in the ASEAN region together with Bank Indonesia (BI), Bank Negara Malaysia (BNM), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT).

SBV signed an amendment to the Memorandum of Understanding (NK) on the sidelines of the Meeting of the Governor of the Central Bank and the 10th Minister of Finance of ASEAN on August 25, 2023 in Jakarta witnessed by the Central Bank of ASEAN 5, which is the initiator of Cooperation on Regional Payment Connectivity.

Head of the BI Communication Department Erwin Haryono said the joining of SBV in the cooperation was an effort to expand the NK for Cooperation in Regional Payment Connectivity signed by BI, BNM, BSP, MAS, and BOT in a series of Leaders Summit events on November 14, 2022 in Bali.

"The expansion of the Cooperation on the Connectivity of the Regional Payment System is a follow-up to the mandate of the 9th Central Bank Governor Meeting and the Minister of Finance of ASEAN, as well as one of the priority achievements of Indonesia's Chairmanship in ASEAN in 2023," he said in a press release today, Friday, August 25.

Erwin explained that the synergy of connectivity of regional payment systems is mainly aimed at strengthening and developing a faster, cheaper, more transparent, and inclusive inter-state payment system.

According to Erwin, NK cooperation will also cover various forms of cooperation, including QR connectivity and fast payment between countries, so that transactions are expected to be carried out more easily, comfortably, and affordablely.

"This cooperation also has the potential to open market access for Indonesian business actors to the region," he said.

Deputy Governor Pham Thanh Ha, who was present representing SBV Governor Nguyen Thi Hong at the NK signing ceremony, was honored that SBV could join as a new participant in NK Cooperation on Regional Payment Connectivity.

He revealed that SBV is looking forward to close coordination between all parties to encourage faster, cheaper, more transparent, and inclusive cross-border payments.

"This NK is a form of solidarity and marks the starting point for strengthening regional economic integration, as well as advancing payment connectivity to make ASEAN a global leader in payment connectivity," he said.

To note, by joining Vietnam in the Cooperation on the Connectivity of the Regional Payment System, the number of participants has increased from five countries to six countries.

This collaboration is expected to support post-pandemic economic recovery and facilitate the economic activities of the ASEAN community, including in the tourism sector and other services.

Expansion is also expected to provide benefits for MSMEs, which are one of the drivers of national economic growth.