China and Vietnam have taken a significant leap in financial cooperation with the launch of a cross-border QR code payment interoperability system, a move set to streamline transactions for millions of consumers and businesses. The initiative, spearheaded by the Industrial and Commercial Bank of China (ICBC), UnionPay International, Vietnam’s NAPAS, and Vietcombank, promises to redefine economic connectivity in Southeast Asia.
Seamless Transactions Across Borders
Under a newly signed quadrilateral agreement, Chinese tourists and business travelers in Vietnam can now use UnionPay apps or affiliated wallets to scan VietQR codes at local merchants. Similarly, Vietnamese visitors to the Chinese mainland can pay via VietQR-supported apps at UnionPay QR terminals. This eliminates the need for currency exchange or third-party platforms, offering real-time settlements in local currencies.
Reducing Dollar Dependency
The collaboration aligns with both nations’ strategies to minimize reliance on the US dollar for trade settlements. By promoting the yuan and Vietnamese dong, the project aims to shield businesses from exchange rate volatility and bolster regional financial stability. Analysts note this could serve as a template for other ASEAN-China partnerships under the Belt and Road Initiative.
A Strategic Economic Vision
Embedded in a bilateral joint statement, the QR payment network underscores efforts to align Vietnam’s 'Two Corridors and One Circle' framework with China’s Belt and Road goals. The initiative also establishes a financial working group to address regulatory harmonization, paving the way for deeper trade and investment integration.
As cross-border e-commerce and tourism rebound post-pandemic, this payment breakthrough is poised to accelerate people-to-people exchanges while supporting small and medium enterprises in both markets.
