According to the CSIS experts, they are conducting a feasibility study on implementing cross-border payments for tourists and international workers in Vietnam. Therefore, CSIS hopes to receive comments from VNBA on the ASEAN CBPS and related issues.
VNBA's Vice Chairman cum Secretary General, Dr. Nguyen Quoc Hung
At the meeting, VNBA's Vice Chairman cum Secretary General, Dr. Nguyen Quoc Hung answered questions from the experts as well as shared the advantages and difficulties in connecting cross-border payments that Vietnam credit institutions - VNBA's members are implementing.
Dr. Nguyen Quoc Hung said that connecting cross-border payment systems between ASEAN countries using QR codes is an inevitable extension of digital financial innovation, in order to keep up with the payment needs of people in countries when traveling, working and living abroad.
With the advantage of rapid internet growth, ASEAN is also one of the markets with the highest level of digital connectivity in the world, electronic payment methods on mobile applications are growing strongly and the rate of people using mobile payments is increasing.
Therefore, the cross-border payment connection between countries is expected to contribute to supporting the promotion of trade, trade promotion and tourism between countries in the ASEAN region, stimulating intra-ASEAN trade growth.
Regarding the biggest challenge that banks in Vietnam may face in the process of implementing CBPS, Dr. Nguyen Quoc Hung said that it is the construction of a common payment merchant. This is a service that allows customers to use to pay for purchases of goods and services at payment acceptance points of payment acceptance units from customers' accounts at banks through the QR code feature on the banks' mobile banking application or e-wallet.
To build a common payment merchant, there needs to be consensus among banks in Vietnam on both technology infrastructure and fees (QR code payment ecosystem). Therefore, the State Bank has assigned VNBA to be the focal point with banks to deploy the construction of a QR code payment ecosystem so that each bank can connect and make payments.
Currently, VNBA has also established a Working Group to develop a Handbook for providing, operating and using cross-border payment services via QR codes. As a result, it is expected to promote solutions to speed up the connection among countries to expand the market for accepting cross-border QR payments.
Dr. Nguyen Quoc Hung also added that Vietnam has completed the connection of the cross-border payment system via QR code with Thailand (in 2019), Cambodia (in 2023), Laos (in 2024), but the payment connections are mainly QR money transfers. Therefore, VNBA, NAPAS and banks are also actively developing the QR payment segment both domestically and internationally.
According to Dr. Nguyen Quoc Hung, promoting cross-border payment connections in the ASEAN region will contribute to supporting the promotion of trade, tourism activities among countries in the region, while stimulating intra-ASEAN trade growth.
In addition, customers also have more convenient payment options, reducing the risks of losing cards, revealing card information, and theft risks when carrying cash. At the same time, it also helps reduce the amount of cash circulating across the border. Thereby, limiting the buying and selling of foreign currencies on the black market.
Also at the meeting, the international research team of CSIS and CIEM asked many questions to consult Dr. Nguyen Quoc Hung about the existing legal corridor for cross-border payments via QR codes, about QR Merchant, forecasting market potential as well as assessing risks related to preventing and combating money laundering via QR codes...
At the end of the meeting, the international research team of CSIS and CIEM expressed their gratitude and appreciation for the very useful information and sharing from Dr. Nguyen Quoc Hung, and expressed their desire to continue receiving support from VNBA in the future.
Vietnam has completed the connection of the cross-border payment system via QR code with Thailand, Cambodia, and Laos. This allows people of each country to scan QR codes to pay for goods and services safely and conveniently in these countries right on the mobile application of Vietnamese banks and vice versa. The biggest benefit of this new payment channel is to facilitate customers when traveling and working among the above countries. Payment on smartphones via this system will be more convenient than paying in cash, without worrying about losing cards or minimizing the risks of fraud.
Currently, many member organizations of the Vietnam Banks Association such as Vietcombank, BIDV, Sacombank, TPBank, VietinBank, NamA Bank, Techcombank, BV Bank, MB... have deployed the cross-border payment system via QR code with Thailand, Cambodia, Laos and will move forward to many other countries.
Boosting cross-border payments will benefit the retail sector as consumer spending is expected to rise, while also boosting tourism.
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