Vietnam’s central bank signs into regional cross-boundary payment system

The memorandum includes other central banks such as Indonesia, Malaysia, Philippines, Singapore, and Thailand.

The State Bank of Vietnam (SBV) officially joined the Regional Payment Connectivity (RPC) initiative, boosting the initiative for the interconnectivity of transactions region-wide.

This expansion builds upon the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC), initiated by the central banks of Indonesia, Malaysia, Philippines, Singapore, and Thailand during the G20 Leaders’ Summit on November 14, 2022, in Bali.

During the 10th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) on 25 August, in Jakarta, Indonesia, SBV signed the Supplemental Pages of the MOU RPC. 

RPC aims to bolster cooperation in payment connectivity, striving for faster, cheaper, transparent, and inclusive cross-border payments. 

It covers diverse methods, including QR-code and fast-payment-based cross-border transactions. The initiative aims to simplify cross-country payments, benefiting both individuals and businesses within ASEAN.

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This collaboration supports post-pandemic economic activities in ASEAN, such as promoting tourism and service industries. The expansion particularly aids small and medium-sized enterprises, crucial to the region's economic growth. 

Connecting payment systems among ASEAN member states enhances trade, investment, and remittances, fostering financial inclusion and advancing the ASEAN economic community. 

The RPC's future expansion could also involve neighbouring economies and countries beyond ASEAN.