Vietnam’s Cross-Border Payments Infrastructure and ASEAN Integration

Vietnam is enhancing its regional payment connectivity by committing to a robust cross-border payments system through a new memorandum of understanding (MoU) with five other ASEAN member states. This move reflects Vietnam's ambition to modernize its payment ecosystem, fostering more transparent, affordable, trackable, and faster cross-border transactions.

Advancing Payment Infrastructure

Vietnam is focused on creating a seamless cross-border payment ecosystem, leveraging QR codes, instant payments, and other emerging technologies to support transactions in multiple currencies. This initiative aims to boost regional trade, investment, tourism, e-commerce, and other economic sectors.

As Vietnam transforms its financial services landscape, the demand for efficient payment systems continues to grow. By 2026, mobile wallet users in Vietnam are expected to triple to 67.6 million, according to Statista. Moreover, the Vietnamese FinTech market is projected to reach $18 billion by 2024, further underscoring the urgency for scalable cross-border payment solutions.

Regulatory Framework and Policies

Vietnam has introduced progressive policies to support its shift toward non-cash payments and digital transformation.

• Decree 101/2012/ND-CP (2012): Provides guidelines for non-cash payment methods, including accounts, intermediary services, and payment systems management.

• Decision No. 2545/QD-TTg (2016): Outlines strategies to promote non-cash payments, improve transparency, and manage risks in the payment ecosystem.

• Decision No. 316/QD-TTg (2021): Authorizes ‘mobile money,’ enabling low-value transactions via mobile phone accounts, a pivotal move toward reducing cash dependency.

While these policies provide a solid foundation, Vietnam still lacks a comprehensive legal framework for cross-border payments, posing challenges to its seamless integration into the global financial system.

Regional Cooperation and ASEAN Initiatives

Vietnam's MoU aligns with ASEAN’s Regional Payment Connectivity (RPC) and the ASEAN Payments Policy Framework (APPF), both designed to enhance cross-border retail payments.

In 2022, central banks from five ASEAN countries committed to RPC initiatives, including interoperability of QR code payments and real-time payment systems. Programs such as Indonesia and Malaysia's cross-border QR code linkage highlight the region's progress in enabling instant, low-cost transfers.

Opportunities and Challenges for Stakeholders

Vietnam's integration into regional cross-border payment systems presents significant opportunities for stakeholders, including non-bank payment service providers (PSPs), financial market infrastructure (FMIs) companies, and foreign investors.

The global cross-border payment market, estimated at $156 trillion in 2022 (EY), offers ample space for innovation, especially in emerging markets like Vietnam. FinTech firms are increasingly targeting underserved segments, such as B2B, B2C, and C2C transactions, leveraging technology to address inefficiencies like high fees, long settlement periods, and limited accessibility.

Despite these opportunities, the market remains highly competitive and fragmented. PSPs and FinTechs must differentiate themselves through unique value propositions and innovative business models to capitalize on Vietnam’s fast-growing digital economy.

Looking Ahead

Vietnam's commitment to cross-border payment integration, combined with its rapid digital transformation, positions the country as a key player in Southeast Asia’s financial landscape. By addressing regulatory gaps and fostering innovation, Vietnam can build a payment infrastructure that not only facilitates regional trade and investment but also strengthens its role as a leader in ASEAN’s economic integration.