SBV and BOL sign MoU on Cooperation in Financial Innovation and Payment Systems

13/01/2023 12:01

Within the framework of the official visit of Prime Minister Pham Minh Chinh to the Lao People's Democratic Republic (Lao P.D.R.), on January 11, 2023, at the headquarters of the Office of the Government of the Lao P.D.R., Deputy Governor Pham Thanh Ha of the State Bank of Vietnam (SBV) and Deputy Governor Vathana Dalaloy of the Bank of the Lao P.D.R. (BOL) signed a Memorandum of Understanding (MoU) on the Cooperation in the fields of Financial Innovation and Payment Systems between the two central banks under the witness of the two Prime Ministers.

Implementing the directions of the two Governors, since early 2022, the relevant entities of the two central banks had actively discussed and agreed on the draft MoU on the Cooperation in the fields of Financial Innovation and Payment Systems. This MOU forms an important legal basis, creating favorable conditions for a lot of potential cooperative activities in the context of the implications of the Industry 4.0 on every aspect of the economy, including the finance and banking sector. 

Within the framework of the MoU, the relevant entities of the two central banks may implement the cooperation and exchange information on the management regulations, as well as experience in enhancing financial innovation and digital transformation of the financial and banking services, the development of payment systems, the consideration of cross-border payment connection between Vietnam and the Lao P.D.R. through the banking systems, etc., in order to contribute to enhancing the bilateral trade, exploit more effectively the potentials for tourism, as well as study and formulate appropriate measures to strengthen the use of domestic currencies for payment transactions between the two countries.

The signing of this MoU under the witness of the two Prime Ministers was one of typical events proving the effective cooperation between the SBV and the BOL in particular, and between the two banking sectors in general in the recent period. The MoU on the Cooperation in the fields of Financial Innovation and Payment Systems, together with other previously signed bilateral arrangements, would provide a relatively complete framework for the SBV and the BOL to implement the cooperative activities and share each other’s experience in every aspect under their jurisdiction, contributing to further enhancing the close and effective cooperation relationship between the two banking sectors of Vietnam and the Lao P.D.R./.
Source: sbv.gov.vn



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