On January 9, the State Bank of Vietnam (SBV) and the Bank of the Lao People's Democratic Republic officially announced the launch of a bilateral retail payment service using QR codes, enabling seamless cross-border transactions between the two countries.

The collaboration between Vietnam's National Payment Corporation (NAPAS) and the Lao National Payment Network (LAPNet) has resulted in a retail payment service that connects 7 Vietnamese banks and 14 Lao banks.

Customers using mobile banking apps from participating Vietnamese banks, including VietinBank, BIDV, Vietcombank, Sacombank, TPBank, BVBank, and Nam A Bank, can now scan LaoQR codes to pay for goods and services at merchants within LAPNet’s network of 14 member banks in Laos.

Transactions are conducted in the local currencies of both countries (LAK/VND), with real-time currency conversion based on the exchange rate at the time of payment.

This system provides a fast, convenient, and seamless payment experience for consumers, eliminating the complexities of cash handling or traditional cross-border payment methods.

The announcement ceremony was attended by Vietnamese Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone, underscoring the importance of this initiative.

Phạm Tiến Dũng, Deputy Governor of the State Bank of Vietnam, highlighted the significance of this development:

“The efforts of the central banks and banking systems of both countries to promote local currency cooperation will serve as a new catalyst for enhancing trade and investment relations. This initiative also strengthens the special friendship and solidarity between Vietnam and Laos.”

Looking ahead, NAPAS will work with LAPNet to introduce payment options for Lao residents visiting Vietnam using the VietQR system. Efforts are also underway to expand the network by onboarding more member banks to meet the growing payment needs of citizens in both countries.

This initiative marks a significant step in fostering greater economic integration and strengthening financial connectivity between Vietnam and Laos.

Tuan Nguyen