Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha signed a Memorandum of Understanding (MoU) on cooperation in connecting regional payments with central banks of ASEAN-5 countries (including Indonesia, Malaysia, the Philippines, Singapore, and Thailand). Photo: Huu Chien/TTXVN

Previously, the aforementioned MoU was signed by the governors of the ASEAN5 central bank on November 14, 2022, in Bali, Indonesia, on the sidelines of the World's Leading Group of Developed and Emerging Economies (G20) as Indonesia's cooperation initiative in the year of G20 presidency in 2022. Under this agreement, ASEAN5 central bank governors are committed to promoting faster, more transparent, comprehensive cross-border payment connectivity at a lower cost while ensuring the rights and interests of users.

By the terms of the MoU, member central banks agree to promote cross-border payment connections based on the application of payment methods such as QR Code, fast payment, and other payment models, as well as cooperate in monitoring and building a healthy risk management mechanism, in line with the legal framework of member countries. MMechanismsto implements MoU in many diverse forms such as dialogue, monitoring, evaluation, and information exchange.

Within the framework of the ASEAN Central Banks' Working Committee on Payment and Settlement Systems (WC-PSS), members highly appreciate this initiative of the five ASEAN central banks and encourage the participation of ASEAN members. So far, there have been 9 links in the field of bilateral payment using QR codes between active ASEAN countries and 10 more links are being developed. Meanwhile, for the field of money transfer, 3 links have been put into operation and 5 links are being set up.

Appreciating the potential benefits and opportunities from this initiative, SBV has proactively coordinated with ASEAN5 central banks to complete the procedures tto become the 6th member of the MoU officially Participating in this agreement demonstrates SBV's commitment to cooperation and integration in the field of payment, in line with the orientation of the Government, SBV as well as the current trend of promoting cross-border payment.

This initiative is considered a great step forward in the international economic integration process of the ASEAN region, in line with the roadmap to promote cross-border payment transactions that the G20 has launched. It is expected that in the coming time, the initiative will continue to consider expanding the membership network to facilitate the promotion of cross-border payment connections not only in the ASEAN region but also with other countries.

With the benefits and opportunities that this project brings, SBV believes that participating in the MoU signing this time will be an incentive to promote the development of trade, investment, tourism, and many other economic sectors, contributing to supporting the post-COVID-19 economic recovery process of domestic enterprises, particularly small and medium enterprises.