China and Vietnam have signed an agreement on promoting cross-border QR code payments, according to the Industrial and Commercial Bank of China.

ICBC has joined hands with China's UnionPay International, National Payment Corporation of Vietnam and JSC Bank for Foreign Trade of Vietnam, signing a quadripartite cooperation agreement on cross-border QR code payment interoperability, the bank said in a statement on Wednesday.

Under the new arrangement, Chinese consumers will be able to make payments at VietQR-enabled merchants in Vietnam by using the UnionPay-affiliated mobile wallets. Conversely, Vietnamese consumers will be able to make payments at UnionPay QR code merchants in China through their local VietQR wallets, according to ICBC.

The signing of this agreement marks a crucial milestone in ICBC's efforts to facilitate bilateral local currency settlement and financial infrastructure interconnectivity between China and Vietnam, ICBC added.

[email protected]