RELEASED DATE 10 Sep 2020
The transaction was completed over the Contour network, a blockchain-based open industry platform focused on digitizing trade finance, and involved a shipment of plastics from a large corporation (exporter) in Thailand to Opec Plastics (importer) in Vietnam. This transaction is completed with coordination among Standard Chartered Bank Vietnam, Bank for Investment and Development of Vietnam JSC (BIDV), Asian Development Bank (ADB) and Standard Chartered Bank (Thailand). Compared to the paper-intensive and time-consuming processes involved in the traditional methods of trade finance, by digitizing the end to end exchange of information and streamlining the process of LC issuance and confirmation, all parties of this transaction use a single platform, Contour.
This is the first cross-bank trade finance transaction using Blockchain technology in Vietnam. It also marks the successful completion of ADB’s first credit guarantee using distributed ledger technology conducted on Contour.
Mr. Nirukt Sapru, CEO, Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank, said: “We are delighted to be part of this landmark transaction, which marks a remarkable milestone in the digitization of documentary trade finance. As trade is an important area of Vietnam's economy, innovative solutions like Contour that can optimize cross-border transactions will enable businesses to make the most of the trading opportunities,…".
Mr. Le Trung Thanh, Senior Vice Executive President of BIDV, said: “BIDV’s successful execution of the first cross-bank letter of credit using blockchain technology is one of our many attempts in digitizing banking practices, which is also our key strategy. BIDV is always a pioneer in digitizing financial and trade transactions towards the global commercialization, service diversification and customer service.”
For positive impact, the blockchain technology has been strongly applied in many areas to promote global trade, including trade finance at banks. The initial successful completion of the LC transaction conducted over blockchain is a significant driver for BIDV to work on digitizing trade finance transactions to provide superior customer service.
For further information, please contact:
Bank for Investment and Development of Vietnam JSC
Tel: (+84) 024.22205544 - Hotline: 19009247