Vietnam and Pakistan Strengthen Financial and Trade Cooperation

Strategic Insights -

Deputy Governor of the State Bank of Vietnam Pham Tien Dung and the delegation of the Ministry of Commerce of Pakistan led by Minister Jam Kamal Khan have worked together to strengthen financial and trade cooperation between the two countries. The delegation visited the National Money Printing Factory and witnessed the production of polymer money, a highly appreciated innovation in Vietnam. The cooperation between the two countries has been ongoing since 2004, with the State Bank of Vietnam and the State Bank of Pakistan signing a Memorandum of Understanding on cooperation. However, the scope of cooperation has been limited, and the two sides have agreed to expand and update the Memorandum to suit the new situation and common concerns. Vietnam and Pakistan are looking to increase two-way trade and financial cooperation, two areas of particular interest to both countries.

Key Takeaways:

  • The State Bank of Vietnam and the State Bank of Pakistan have a Memorandum of Understanding on cooperation signed in 2004, focusing on legal information exchange and human resource development training.
  • The cooperation has been limited, and both sides have agreed to expand and update the Memorandum to suit the new situation and common concerns.
  • Vietnam and Pakistan are looking to increase two-way trade and financial cooperation, two areas of particular interest to both countries.
  • The production of polymer money in Vietnam is highly appreciated for its durability, aesthetics, anti-counterfeiting ability, efficiency, and environmental friendliness.
  • The National Money Printing Factory has a capacity of 2.07 billion pieces/year and is expected to increase to 3.64 billion pieces/year in 2026 and 4.47 billion pieces/year in 2028.
  • Vietnam is one of the few countries applying biometrics in banking services, with over 87% of adults having a bank account and most banking services being 100% digitized.
  • Pakistan has a great demand for cashless payments, estimated to be over 90% of transactions conducted on digital channels, a significant opportunity for cooperation with Vietnam.
  • The signing of the cooperation memorandum of understanding between the Ministry of Industry and Trade and the development of the FTA (Free Trade Agreement) cooperation program framework will open up many great opportunities for trade and financial cooperation.

Statistics:

  • Over 87% of adults in Vietnam have a bank account (2025).
  • Most banking services in Vietnam are 100% digitized (2025).
  • Many credit institutions in Vietnam have a rate of over 90% of transactions conducted on digital channels (2025).
  • The National Money Printing Factory has a capacity of 2.07 billion pieces/year (2025).
  • The production of polymer money is expected to increase to 3.64 billion pieces/year in 2026 and 4.47 billion pieces/year in 2028.
  • Pakistan has a population of approximately 250 million people (2025).

Sources:

  • Press release from the State Bank of Vietnam, July 11, 2025.
  • Memorandum of Understanding signed between the State Bank of Vietnam and the State Bank of Pakistan in 2004.
  • Statistics on bank account ownership and digital banking services in Vietnam (2025).
  • Capacity of the National Money Printing Factory (2025).
  • Expected increase in production of polymer money in Vietnam (2025).