Australian technology helps modernise the monetary system of Vietnam

By Securency Pty Ltd

2003

On 17 December 2003 the State Bank of Vietnam issued new 50,000 and 500,000 dong polymer banknotes. At a press conference held by the State Bank, Governor Le Duc Thuy said that Vietnam decided on the change “to make the money structure more reasonable and to better fight against counterfeits”. He also said the new Australian made polymer based notes were more durable, and to demonstrate he dipped one banknote into a glass of water. “People selling vegetables and fish in the market will be very happy with this money.” he added to the amusement of those present.

As one of the fastest growing economies in South East Asia, Vietnam commenced its “doi moi” economic “renovation” in 1986 shifting from a centrally planned to a more market driven economy. The introduction of polymer banknotes in Vietnam is a significant contribution to the reformation of the banking and monetary system. The population of Vietnam is approximately 80 million people.

The polymer banknote technology adopted by Vietnam is that which forms the basis of the Australian currency notes jointly developed by the Reserve Bank of Australia and the Commonwealth Scientific & Industrial Research Organisation of Australia (“CSIRO”). Since 1996 the technology has been marketed as Guardian® by Securency Pty. Ltd., a joint venture equally owned by the Reserve Bank and UCB S.A, a Belgian multi national.

Following several years evaluating polymer bank notes the State Bank of Vietnam Banknote Printing Plant conducted a trial printing in Vietnam in 2001. The results were very good and clearly showed the Vietnamese that polymer banknotes were worthy of further consideration. The Bank then conducted a “due diligence” programme by independently surveying a number of major central banks in countries where polymer banknotes are in circulation.

Introducing the polymer technology to Vietnam included the printing of a number of Vietnamese banknotes in Australia in order to train the Bank’s printers. Further training of Vietnamese banknote printing specialists was undertaken in Vietnam by Australian experts. All printing is now being conducted in Vietnam on Guardian® substrate manufactured by Securency.

Securency Managing Director, Mr. Myles Curtis said, “the State Bank conducted a most rigorous examination of our technology which in reality took some years. We have been committed to this project for some considerable time and we are absolutely delighted at the results which clearly demonstrate the excellent relationship that Australia has with Vietnam. The people we have been working with in Vietnam have been very professional, very well trained and are very good at what they do.” Mr Curtis acknowledged the important role Austrade has played and added “ one should not underestimate the extremely high level of trust and integrity that must be established before a project like this can even be considered. As in all the countries we are working in, the support we received from the Embassy and the Department of Foreign Affairs and Trade has been extremely helpful”.

Guardian® substrate is now used in the banknotes of more than 20 countries worldwide.