How Swift is evolving cross-border payment transparency in Vietnam

Strengthening Vietnam’s payment infrastructure

Vietnam’s domestic payment infrastructure comprises two key systems: CITAD, its Interbank electronic payment system, and NAPAS, its instant payment system.

For financial institutions sending cross-border payments into Vietnam, it was often unclear how transactions would be routed and processed once they entered the domestic system. This lack of visibility created friction and made it difficult for international banks to track payments from origin to destination.

As Vietnam continues to modernise its financial ecosystem, aligning both systems with international standards is essential for enhancing transparency, improving interoperability, and delivering better outcomes for domestic and cross-border transactions.

Enhancing payment transparency

To address this, Swift undertook several key initiatives. The first step was to improve transparency around domestic clearing processes. Acting on behalf of the State Bank of Vietnam, a project team successfully registered an ISO cash clearing code with the ISO Registration Authority.

This code is now applicable to CITAD and NAPAS, meaning that banks sending cross-border payments into Vietnam can clearly see how transactions will be routed and cleared. The result is improved clarity and reduced reconciliation issues.

Next, the project team focused on tracking. It enabled the Unique End-to-End Transaction Reference (UETR) and Structured Transaction Information (STI)  to be carried through the domestic leg of transactions processed via CITAD. This development allows payments to be monitored throughout their journey, from origin to destination.

To demonstrate the functionality, Swift then conducted a successful ‘proof-of-concept penny test’ with Vietcombank, one of Vietnam’s largest and most established financial institutions. The test showed how easily transactions could be tracked from origin to destination within the Vietnamese system.

Building for the future

The registration of the ISO clearing code has laid the groundwork for future integration of UETR and STI to be carried across its system.  

Once UETR and STI capabilities are introduced, payments flowing into the instant system will enjoy the same level of transparency and tracking as those now routed through CITAD. 

In collaboration with Vietcombank, Swift is championing the adoption of these standards across the broader banking community. Engagement is also underway between Swift and the State Bank of Vietnam to obtain formal endorsement for the adoption of UETR and STI across the wider banking community.

“Bringing the entire banking community on board is key,” added Pham Anh Tuan, Director General of Payment Department of the State Bank of Vietnam. “The more participants that can carry and process structured data, the more reliable and efficient our framework becomes.” 

A step towards global best practice

This initiative represents a pivotal advancement in the evolution of Vietnam’s payment infrastructure. By aligning domestic systems with ISO 20022 standards and promoting end-to-end tracking, the project boosts transparency and sets the stage for broader adoption across the financial sector. 

The result is a more efficient payment landscape that strengthens Vietnam’s position in the global financial system.

"At Swift, we welcome international participants to come together to find ways to promote the transparency and traceability of all transactions,” Kevin Wong, Head of APAC at Swift, said of the initiative.

“This is a great example of such collaboration, and we look forward to working further with State Bank of Vietnam and Vietcombank to promote this approach to make it an industry practice in Vietnam.”

As Swift celebrates 50 years of enabling the future of finance, the project is a powerful example of how that future is being made real.