In a significant step towards financial innovation, China and Vietnam are teaming up to make cross-border payments smoother than ever. The Industrial and Commercial Bank of China (ICBC) has announced a new agreement that will enable QR code payment interoperability between the two countries.
Signed on April 15, ICBC, along with UnionPay International, Vietnam National Payment Corporation (NAPAS), and Vietnam Bank for Foreign Trade (Vietcombank), formalized the “Quadrilateral Cooperation Agreement on China-Vietnam QR Code Retail Payment Interoperability.” This collaboration aims to enhance the payment experience for consumers, allowing for seamless transactions across borders.
What does this mean for shoppers? Chinese consumers visiting Vietnam can now pay using the UnionPay app or affiliated wallets at merchants accepting VietQR codes. On the flip side, Vietnamese consumers in China can use their local VietQR wallets at UnionPay QR code merchants. This not only simplifies the shopping experience but also promotes the use of local currencies, reducing dependency on the US dollar.
Under the guidance of the People’s Bank of China and the State Bank of Vietnam, this initiative marks a new phase in integrating financial infrastructures between the two nations. It’s a move that strengthens economic ties and encourages people-to-people exchanges, paving the way for deeper cooperation.
This project also aligns with broader regional initiatives like China’s “Belt and Road” and Vietnam’s “Two Corridors and One Circle” framework. By enhancing payment networks and meeting the cross-border payment needs of consumers, both countries are taking a stride towards a more interconnected future.
For the tech-savvy youth and global citizens, this development signifies not just convenience in transactions but also a step towards greater financial inclusion and collaboration in the region.
