Vietnam hooks up to Asean payment connectivity

The State Bank of Vietnam (SBV) on Friday joined the Regional Payment Connectivity (RPC) initiative, which seeks to strengthen collaboration on the development of faster, cheaper, more transparent, and more inclusive cross-border payments in Southeast Asia and beyond.

The SBV signed the supplemental pages of the memorandum of understanding (MoU) on the RPC during the 10th Asean Finance Ministers’ and Central Bank Governors’ Meeting in Jakarta.

SBV Deputy Governor Pham Thanh Ha said at the signing ceremony: “The MoU shows our solidarity and marks a good starting point for cooperation to strengthen regional economic integration and advance payment connectivity toward making Asean a global leader in payments connectivity.”

The inclusion of the Vietnamese central bank SBV increases the RPC group from five to six Asean central banks. The PRC initiative was introduced by the central banks of Indonesia, Malaysia, the Philippines, Singapore, and Thailand on the sidelines of the G20 Leaders’ Summit in Bali, Indonesia in 2022.

Under the MoU, member central banks promote cross-border payment connectivity based on the usage of payment methods such as QR Codes, instant payments, and other payment models, together with cooperation in monitoring and building a robust risk management mechanism in line with the legal framework of member countries.

The initiative has the potential to bolster post-pandemic economic activities across the region, including the promotion of tourism and other service industries, and could benefit small and medium-sized enterprises in the six Asean member states.

In addition to payment connectivity, the member states can increase trade and remittances within the region, broadening financial inclusion and contributing to the overall development of Asean economies.

The RPC is expected to be expanded further to include neighboring economies and other countries beyond Asean.