Vietnam, Laos promote payments in local currencies to boost trade
A conference was held in Vientiane on March 14 to promote the use of the Lao kip (LAK) and the Vietnam dong (VND) in payments for goods and services between the two countries.
Speaking at the event, Manola Meuangmani, Director General of the Foreign Exchange Management Department under the Bank of the Lao PDR, emphasized that reducing reliance on foreign currencies is crucial for monetary stability. Integrating LAK and VND into bilateral transactions marks a significant step in achieving this goal, she added.
Currently, two banks, Lao-Viet Joint Venture Bank (LVB) and Vietcombank Laos, facilitate trade and service payments in LAK and VND. Expanding local currency usage will offer businesses greater flexibility in payment options, lowering transaction costs and easing foreign currency demand pressures.
During the conference, delegates shared insights and recommendations to further facilitate local currency payments. Their discussions will facilitate the implementation of trade and investment payments in line with the actual conditions of both countries.
The State Bank of Vietnam and the Bank of the Lao PDR signed a Memorandum of Understanding in 2023, aiming to strengthen bilateral payments in VND and LAK.
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