VCI Legal – August 17, 2026

Techcombank is rolling out international remittance accounts by integrating Visa Direct into its digital banking platform. The service uses Visa’s global payment network to facilitate cross-border transfers and offers an alternative to traditional correspondent banking, where payments may pass through several intermediary banks before reaching the recipient. By connecting directly with participating payment networks in North America and Europe, the service can reduce the number of intermediaries involved in a transaction and shorten the time needed to deliver funds.

For eligible transactions, USD, EUR, GBP and CAD can be credited directly to domestic accounts within 24 hours, without inbound receipt fees. The service therefore addresses a practical issue faced by individuals and businesses receiving money from overseas: how to receive foreign currency quickly, at a lower cost and through a regulated banking channel.

The development is also relevant to Vietnam’s plans to establish International Financial Centers (IFCs) in Ho Chi Minh City and Da Nang. Cross-border payments are an essential part of any international financial center, and the Ho Chi Minh City IFC in particular is expected to support cross-border financial activities and new financial products and services. Techcombank’s Visa Direct integration is currently a retail payment solution rather than wholesale financial infrastructure. Nevertheless, it provides a concrete example of how digital technology can improve the movement of money across borders, which is one of the building blocks of a more internationally connected financial market.

The impact can be seen at both the individual and national levels.

For freelancers, remote workers, digital content creators and other people earning income from overseas, digital remittance services can reduce the need to visit a bank branch or complete traditional over-the-counter procedures. The ability to receive and hold certain foreign currencies also gives customers greater control over when to convert their money into Vietnamese dong. This can be useful for customers who do not want to convert their foreign currency immediately upon receipt.

At the national level, bringing more remittance transactions into regulated banking channels can improve transparency and traceability. Vietnam receives tens of billions of US dollars in remittances each year, making remittance flows an important source of foreign currency. Digital receiving accounts can help banks process these flows more efficiently while supporting compliance with applicable reporting and foreign-exchange requirements. The expansion of digital accounts also supports Vietnam’s wider policy of increasing the use of electronic and cashless payments.

However, retail payment innovation alone does not make an International Financial Center. This distinction is important. A financial center that aims to compete with established markets such as Singapore and Hong Kong needs much more than fast digital transfers. It needs clear rules for foreign-exchange transactions, cross-border investment and capital movements, reliable clearing and settlement systems, and effective mechanisms for resolving complex financial disputes.

Hong Kong and Singapore provide useful examples. Hong Kong has developed its position as an international financial center with the support of its common-law legal system, independent courts and established dispute-resolution framework. These features give international investors greater certainty when entering into complex transactions. Singapore has taken a similar approach by developing its financial markets, opening its financial sector to international participants and continuously improving the legal and regulatory framework for banking, securities and other financial services.

For Vietnam, the development of the IFCs in Ho Chi Minh City and Da Nang therefore requires attention to the legal and institutional framework supporting international finance. This includes specialized mechanisms for handling financial disputes, international arbitration, rules for cross-border transactions and regulators with sufficient expertise to supervise increasingly sophisticated financial activities.

Foreign-exchange and capital-flow rules will be another key issue. One proposal under discussion is the “offshore within onshore” model, under which designated financial areas could allow greater flexibility for foreign-currency transactions and cross-border capital movements while keeping these activities within a controlled regulatory environment. The objective would be to make it easier for international investors and financial institutions to operate in Vietnam without creating unnecessary risks for the wider domestic financial system.

Hong Kong’s experience with offshore renminbi activities illustrates the importance of supporting infrastructure. The development of cross-border investment channels such as Bond Connect has helped connect Hong Kong’s financial market with mainland China while providing investors with structured access to renminbi-denominated assets. For Vietnam, the broader lesson is that greater flexibility in capital flows needs to be supported by clear rules, reliable payment and settlement systems, and effective supervision.

Regulatory sandboxes can also play a role in this process. Singapore and Hong Kong have used sandbox frameworks to allow financial institutions and technology companies to test new products under defined conditions. The purpose is not simply to relax regulation, but to allow innovation while setting clear limits on customer exposure, operational risks and other potential problems. Vietnam can adopt a similar approach as it develops new financial products and services for the IFCs.

Payment, clearing and settlement infrastructure will also become increasingly important as Vietnam seeks to attract larger international transactions. Faster and more integrated systems can reduce settlement times, operating costs and risks between financial institutions. This is particularly important for an IFC that seeks to serve institutional investors and businesses, rather than only retail customers.

Against this backdrop, Techcombank’s integration of Visa Direct is a useful example of the progress Vietnam is already making in digital finance. Its immediate value is practical: it makes cross-border payments faster, more convenient and potentially less costly for customers, while keeping transactions within regulated banking channels.

The larger challenge, however, lies beyond retail payments. If Ho Chi Minh City and Da Nang are to develop into competitive International Financial Centers, Vietnam will need to build the legal and financial infrastructure that supports international investment and more complex cross-border transactions. This includes clearer rules on foreign exchange and capital movements, stronger payment and settlement infrastructure, effective financial supervision, and specialized mechanisms for resolving international commercial and financial disputes.

Techcombank’s initiative therefore represents one part of a much larger process. Digital payment innovation can improve the way money enters and moves through Vietnam. The next step is to build the legal, regulatory and financial infrastructure needed to turn that improved connectivity into a broader and more competitive international financial market.

About VCI Legal:

VCI Legal is an award-winning business law firm in Vietnam with a wide range of legal and corporate services, among other things, corporate, banking & finance, tax, labor & HR, real estate and dispute resolution with special focus on international investment disputes, We also offer our specialized type of service called “In-House Counsel Service” with the aim of assisting our clients in dealing with all types of internal and external issues arising from their day-to-day operations and business activities. With our offices in both Hanoi and Ho Chi Minh City, we have a tremendous depth of experience in providing well-reasoned and comprehensive legal advice to not only multinationals and Fortune 500 companies, but also small and medium enterprises.

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