Vietnam and China have officially launched a bilateral QR payment connectivity service, a move hailed by regulators as the culmination of a highly anticipated project aimed at integrating the two neighbours’ retail payment systems and boosting local-currency transactions.

The launch facilitates seamless and safer cross-border commerce for a burgeoning number of travellers and businesses, significantly advancing financial integration between the Asean member state and its northern neighbour.

Regulatory milestone

The State Bank of Vietnam ( SBV ) confirmed the project’s high priority, noting its crucial role in bilateral trade and tourism.

Pham Anh Tuan, head of the SBV payment department, calls the December 2 launch in Hanoi "one of the most anticipated connectivity projects this year", creating a "memorable moment" that promises a positive start to the new year.

The service was launched by a powerful consortium following an October 2024 memorandum of understanding and subsequent four-party agreement: the National Payment Corporation of Vietnam ( Napas ), UnionPay International ( UPI ), Industrial and Commercial Bank of China ( ICBC ), and Bank for Foreign Trade of Vietnam ( Vietcombank ).

The system is currently operational in the Vietnam inbound direction. Chinese visitors can now use their familiar banking and e-wallet apps to make payments across Vietnam by simply scanning the VietQR Global code.

This connectivity immediately benefits major retail and tourism chains, with early adopters including Thai-backed Central Retail Vietnam’s supermarket system, Highlands Coffee, and various Sun World tourism sites. By enabling transactions through a standard QR code, Vietnamese businesses can efficiently serve one of their largest visitor markets.

Local currency settlement

A centerpiece of the initiative is the use of local-currency settlement. Larry Wang, vice president and chief executive officer of UnionPay International, affirms Vietnam’s status as a key economic partner, noting that this feature is specifically designed to support renminbi internationalization while vastly improving the cross-border payment experience.

According to Napas CEO Nguyen Quang Minh, the service aims to expand the use of local currencies in cross-border transactions to strengthen overall trade, tourism, and economic cooperation.

The market can expect full, two-way functionality soon. The second phase, which will enable Vietnamese consumers to pay by scanning UnionPay QR codes in China, is scheduled for deployment in the first quarter of 2026.

SBV’s Pham says bringing this reciprocal technology to citizens of both nations wraps up the payments sector for 2025 on a “successful conclusion”. Furthermore, UnionPay notes that this project is part of a broader commitment to building an efficient regional payment ecosystem, bolstering long-term financial connectivity across the entire Asean region.