How are Vietnamese banks enhancing their international payment services and cross-border cash management to support businesses?

Nguyen Quoc Hung, vice chairman and general secretary of the Vietnam Banks Association

Amid increasingly complex capital flow controls and global tariff policies, Vietnamese banks are facing mounting challenges.

Firstly, a lack of access to and understanding of international regulations poses legal compliance risks. Secondly, the rising number of fraudulent and scam-related transactions requires banks to significantly invest in advanced technologies and robust verification processes. Lastly, intensifying competition from international banks is pushing domestic institutions to improve their service offerings and enhance customer support.

The most pressing risks in cross-border transactions today include fraud, money laundering, and terrorist financing. Personal remittances conducted online are particularly vulnerable, as users often lack sufficient awareness of security risks.

Vietnamese banks are actively improving their international payment services and cross-border cash flow management to better support enterprises expanding abroad. Many have adopted digital solutions such as electronic payment systems and real-time remittance services to reduce transaction time and costs.

To strengthen the sector’s resilience, the Vietnam Banks Association (VNBA) is developing a plan to promote interbank fraud data sharing. This initiative aims to establish an early-warning system across the financial system, enabling banks to swiftly detect and address suspicious transactions.

As global capital shows signs of repatriation in response to geopolitical uncertainties, what opportunities can domestic banks seize on to attract foreign investment?

Despite global capital outflows, Vietnam, as an emerging economy with strong fundamentals, remains a promising destination for medium- and long-term investment. If Vietnamese banks can position themselves strategically, leveraging economic growth, embracing digital transformation, advancing green finance, and reforming governance, they can turn today’s global de-risking trend into an opportunity for capital inflows to flow in reverse, back to Vietnam.

Vietnam continues to be one of the fastest-growing economies in the East Asia-Pacific region, according to the World Bank, with a GDP growth target of 8 per cent by the end of 2025. Foreign investors are actively seeking the “golden trio”: safe destinations, high yields offering and political stability, and Vietnam satisfies all three.

Many domestic banks are stepping up their search for foreign strategic partners, not only to bolster capital, but also to diversify financial products and expand market access. Vietnam has already had success in attracting international capital through bond issuances and trade finance collaborations.

Are biometric technologies and AI being applied to detect and prevent fraudulent transactions at an early stage? If so, what has been the practical impact?

According to official statistics, Vietnam has around 200 million registered bank accounts. However, after implementing biometric verification and cross-checking with the national population database, only 113 million individual accounts and roughly 711,000 corporate accounts remained active. This suggests that nearly 86 million accounts may be dormant, abandoned, or created for fraudulent purposes, and are now effectively rendered inoperable.

To tackle this, Vietnamese banks have increasingly adopted biometric authentication and AI-powered systems to detect and prevent fraudulent transactions. Biometric technologies, such as facial recognition, fingerprint scanning, and voice identification, are now being used to verify user identities during financial transactions, preventing unauthorised account access.

What recommendations does the VNBA have to accelerate digital transformation, strengthen anti-money laundering efforts, and improve the overall legal framework for the banking sector?

The VNBA has proposed that the State Bank of Vietnam and relevant authorities introduce supportive policies for digital and green transformation. It also recommends the introduction of policies to encourage investment in emerging technologies and the development of a skilled workforce to meet the demands of a modern financial market.

In particular, the VNBA suggests updating and refining legal regulations related to digital transformation in the banking sector to align with technological advancement and operational realities. Detailed guidance should be provided on the application of new technologies such as blockchain, AI, and fintech solutions to help banks comply effectively.

In parallel, the central bank is currently seeking public feedback on draft amendments aimed at implementing the national action plan on anti-money laundering, counter-terrorism financing, and countering the financing of weapons of mass destruction in alignment with commitments to the Financial Action Task Force. This initiative also targets the early removal of Vietnam from its Grey List while ensuring national interests are maximised.