The State Bank of Vietnam (SBV) is hosting a two-day conference in Hà Nội on strengthening the adoption of ISO 20022 standards in the interbank electronic payment system. — Photo thoibaonganhang.vn

HÀ NỘI — The State Bank of Vietnam (SBV) is hosting a two-day conference in Hà Nội on strengthening the adoption of ISO 20022 standards in the interbank electronic payment system, as part of the ADB-funded technical assistance project on promoting inclusive finance and climate financing.

Speaking at the event that opened on Monday, Deputy Director of the SBV’s Information Technology Department Đoàn Thanh Hải said ISO 20022 is no longer unfamiliar to banks. Under SWIFT’s schedule, the SWIFT payment system has been using ISO 20022 alongside the old MT messages since March 2023 and will fully migrate to ISO 20022 in November.

Many central banks and national payment system operators worldwide have adopted this standard. In Việt Nam, the ACH system operated by NAPAS has also implemented ISO 20022, he said.

ISO 20022 is an open global standard applied across numerous financial sectors including payments, securities, foreign exchange, trade financing and card systems, he said, adding that its benefits include supporting interoperability, standardised and reusable messages, and rich data that support diverse services and greater transaction transparency.

According to Maria Pateguana, ADB’s Head of Private Sector Development, Việt Nam is moving towards cashless transactions at an unprecedented speed, with digital payments emerging as one of the most dynamic drivers of the Vietnamese economy.

The SBV has taken decisive steps to promote digital payments, supporting financial inclusion and a digital economy. The interbank payment system (IBPS), operated by SBV and serving as the backbone for domestic clearing among financial institutions, is being modernised to meet international standards and enhance transparency, she added.

ISO 20022 adoption will improve data quality, interoperability and transaction efficiency, she said, adding that the standard is widely used by payment systems and market infrastructures globally.

Việt Nam is aligning its domestic payment system with ISO 20022, already in use for cross-border SWIFT transactions, which will enhance compatibility, support straight-through processing (STP) and lay the foundation for deeper integration into the global financial system, she stressed. — VNS