ISO 20022 helps Vietnam integrate in AEC hinh anh 1Illustrative image (Photo:VNA)

The State Bank of Vietnam plans to apply the ISO 20022 standard – a universal financial industry message scheme – by 2019 to facilitate cross-border transactions of the banking system, especially when the ASEAN Economic Community (AEC) is formed by year’s end.

Talking to Vietnam News Agency correspondents in Singapore on the sidelines of the recent SWIFT International Banking Operations Seminar (SIBOS), SWIFT Standards expert Alexandre Kech said that ISO 20022 is the latest standard system serving communications in payment, securities, investment and international trade.

It can boost business and geographical integration, allowing numerous countries to have a common voice during transactions, he added.

However, to promote the efficiency of the new scheme, Vietnam should reform its cross-border payment facilities to bring them on par with international standards.

Alexandre Kech said that applying ISO 20022 will be an opportunity for Vietnam to facilitate the cross-border transactions of banks as well as importers and exporters while helping the country become a leading ASEAN market.

ISO 20022 is an international standard that defines the ISO platform for the development of financial message standards. Its business modelling approach allows users and developers to represent financial business processes and underlying transactions in a formal but syntax-independent notation.-VNA