Laos and Vietnam recently launched a cross-border QR code payment system that has the potential to boost trade and tourism between the two countries.

The launch ceremony was held on January 9 during the 47th Vietnam-Laos Intergovernmental Committee session in Vientiane, with the participation of Prime Minister Pham Minh Chinh and his Lao counterpart Sonexay Siphandone.

This initiative is expected to enhance tourism, spending, consumption, and exchanges between the two nations, while also contributing to the growing collaboration in finance and banking within ASEAN.

Who is involved in this project?

This collaboration between the State Bank of Vietnam and the Bank of the Lao People’s Democratic Republic was initially proposed in 2023, supported by the National Payment Corporation of Vietnam (NAPAS) and the Lao National Payment Network (LAPNet). Several commercial banks from both nations are also involved.

Seven Vietnamese banks—Vietinbank, BIDV, Vietcombank, Sacombank, TPBank, BVBank, and Nam A Bank—will provide the cross-border QR payment service.

Customers can utilize mobile banking apps to scan Lao QR codes and make payments for goods and services within LAPNet’s 14 banks in Laos.

How does the system work?

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

This service is expected to facilitate seamless transactions between Vietnam and Laos, promoting the use of local currencies in cross-border dealings.

So far, NAPAS has implemented similar QR code payment services with Thailand, Cambodia, and now Laos, with plans to expand to other countries such as China, South Korea, and Japan.