Bridging Financial Innovation and Market Integrity: Singapore and Vietnam Deepen Strategic Cooperation
Singapore and Vietnam have taken a decisive step forward in strengthening their bilateral financial collaboration, as the Monetary Authority of Singapore (MAS) and the State Bank of Vietnam (SBV) inked an upgraded Memorandum of Understanding (MOU) on financial innovation today (12 March 2025). This enhanced agreement is set to foster joint digital innovation projects, deepen payment connectivity, and support FinTech operations across both markets.
Pioneering Financial Innovation
The upgraded MOU, building on the original agreement signed in 2018, seeks to create new synergies between Singapore's robust financial ecosystem and Vietnam's rapidly evolving financial landscape. It emphasizes payment connectivity, including cross-border retail payment solutions via QR codes, and establishes a foundation for collaboration on innovative financial technologies.
Chia Der Jiun, Managing Director of MAS, expressed his optimism, stating, "Singapore and Vietnam enjoy a longstanding, multi-faceted partnership in financial services. Stronger cooperation will deepen our economic and trade relations while promoting financial innovation and connectivity."
Similarly, Nguyen Thi Hong, Governor of SBV, remarked that "Singapore serves as a great inspiration for financial innovation in the region and globally. Today's MOU strengthens the foundation for both sides to further promote cooperation and enhance the exchange of information and experiences."
Building a Framework for Capital Markets and Digital Assets
In a parallel development, MAS and the State Securities Commission of Vietnam (SSC) signed a Letter of Intent (LOI) to enhance cooperation in capital markets regulation and the digital asset regulatory framework. The LOI focuses on sharing expertise in capital market stability, anti-money laundering (AML), counter-terrorism financing (CTF), and the regulation of digital assets.
Lim Tuang Lee, Assistant Managing Director (Capital Markets) at MAS, highlighted the long-standing partnership between the two countries, noting that "This LOI reflects our commitment to support each other to protect the integrity and stability of our capital markets while promoting cross-border connectivity."
Vu Thi Chan Phuong, Chairperson of SSC, echoed these sentiments, emphasizing that "Economic, financial, and investment cooperation has become increasingly in-depth and effective. This LOI marks a new step forward, fostering stability and transparency in the capital and digital asset markets."
Why It Matters
As Vietnam emerges as a pivotal player in Southeast Asia's financial landscape, collaboration with Singapore—one of the world's leading financial hubs—holds immense potential. The upgraded MOU and LOI represent a strategic convergence of innovation and regulatory integrity, setting the stage for enhanced cross-border financial flows and greater resilience in the capital markets.
For financial institutions and investors, this strengthened cooperation signals new opportunities in the FinTech and digital asset sectors, while also underscoring the commitment of both countries to uphold market integrity and stability.
These agreements, witnessed by Singapore Prime Minister Lawrence Wong and Vietnam's General Secretary To Lam during the latter's official visit to Singapore, mark a milestone in the bilateral relationship, paving the way for a more interconnected and innovative financial future.
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