(Xinhua)
Updated: 2007-08-13 18:41

HANOI -- The Industrial and Commercial Bank of Vietnam (Incombank) has cooperated with a Chinese partner to launch a cross-border online banking service, helping facilitate the two countries' border trade in Vietnam's northern provinces of Lang Son and Quang Ninh.

The new service conducted by a Vietnamese bank for the first time has helped shorten payment time to just half an hour from four hours, local newspaper Vietnam Investment Review reported Monday.

Earlier, a customer from Vietnam or China needed to complete paper-based settling document for crossing border payment, which would be sent to a relevant bank in the other country.

The service could also eliminate unofficial exchange markets at border gates, Incombank's deputy general director Nguyen Van Thanh said, noting that up to 70 percent of cross border transactions via Mong Cai border gate in Quang Ninh are settled via the banking system.

"With the new online settling service, we expect the rate could soon increase to 85-90 percent," he said.

Vietnam and China, with a two-way trade volume of roughly US$10 billion in 2006 according to the Chinese statistics, have targeted the figure of 15 billion dollars in 2010.