Laos and Vietnam recently launched a cross-border QR code payment system that has the potential to boost trade and tourism between the two countries.
The launch ceremony was held last 9th January during the 47th Vietnam-Laos Intergovernmental Committee session in Vientiane, with the participation of Prime Minister Pham Minh Chinh and his Lao counterpart Sonexay Siphandone.
The initiative is expected to boost tourism, spending, consumption, and people-to-people exchanges between the two nations, while also contributing to the growing trend of finance and banking collaboration within ASEAN.
Who’s involved in this project?
This collaborative initiative between the State Bank of Vietnam and the Bank of the Lao People’s Democratic Republic was initially proposed in 2023 and is supported by the National Payment Corporation of Vietnam (NAPAS) and the Lao National Payment Network (LAPNet), along with the commercial banks of both nations.
Seven Vietnamese banks, namely Vietinbank, BIDV, Vietcombank, Sacombank, TPBank, BVBank, and Nam A Bank, will offer the cross-border QR payment service.
Customers of these banks can use their mobile banking apps to scan Lao QR codes and make payments for goods and services at payment acceptance points within LAPNet's network of 14 banks in Laos.
How does the system work?
Transactions will be conducted in the local currencies of both countries (LAK/VND), with currency conversion occurring in real time based on the prevailing exchange rate at the moment of payment.
The service is expected to facilitate convenient and seamless transactions between Vietnam and Laos while encouraging the use of local currencies in cross-border transactions.
So far, NAPAS, under the guidance of the SBV, has implemented cross-border payment services using QR codes with Thailand, Cambodia, and now Laos.
The service is also expected to be expanded to other countries such as China, South Korea, and Japan.
