Singapore and Vietnam establish partnerships for Fintech innovation and banking supervision

According to a press release, the Monetary Authority of Singapore (MAS) and the State Bank of Vietnam (SBV) have agreed to establish a new partnership to encourage Fintech innovation and to strengthen cooperation in banking supervision.

The MAS-SBV Memorandum of Understanding (MOU) on financial innovation and the enhanced MOU on banking supervision were signed by MAS Managing Director Mr Ravi Menon and SBV Governor Mr Le Minh Hung, during the Official Visit of His Excellency Nguyen Xuan Phuc, Prime Minister of Vietnam, to Singapore this week.

The MAS-SBV MOU on financial innovation will facilitate joint innovation projects between the two countries, helping Fintech companies in one jurisdiction better understand the regulatory regime and opportunities in the other, and encouraging the sharing of information on emerging Fintech trends and developments.

“Singapore and Vietnam share a strong common interest to improve the supervision of our banks, and to promote financial innovation. The new partnership in FinTech will encourage joint initiatives to improve the quality of financial services and enhance financial inclusion in both our countries and within ASEAN,” said Mr Ravi Menon, Managing Director of MAS.

MAS and SBV also revised their existing MOU on banking supervision to enhance cooperation in crisis management.

The MOU underscores the two regulators’ shared commitment to safeguarding the financial sectors in Singapore and Vietnam.

“Vietnam and Singapore have developed close cooperation in the banking sector in the past many years. With the signing of the revised MOU on cooperation and exchange of information in banking supervision and MOU on cooperation in the field of financial innovation, the framework for cooperation between our two agencies will be broadened and deepened, contributing importantly to the development of the strategic partnership between the two countries,” said Mr Le Minh Hung, Governor of SBV.

Other than this agreement on Fintech and banking supervision, Singapore and Vietnam also signed several other MOUs covering a range of issues from water and waste management, LNG development, renewable energy, and trade standards.

According to Straits Times, Singapore Prime Minister Lee Hsien Loong also announced that Hanoi, Ho Chi Minh City and Da Nang in Vietnam will be part of the ASEAN Smart Cities network which is being proposed by Singapore.

"I visited all three cities during my two visits to Vietnam last year and was very impressed with their rapid urban development. Their inclusion in the smart cities network will add to ASEAN's vibrancy," said Prime Minister Lee.

More details on the network, which aims to better connect digital infrastructure and services like e-payments across the region, will be announced when ASEAN leaders gather for the 32nd ASEAN Summit this weekend.

Feature image: Monito

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