Global trade finance network Contour recently announced it has completed a pilot transaction between Taiwan’s Tainan Spinning and Vietnam’s Century Synthetic Fibre Corporation. CTBC Bank was the advising bank in the letter of credit (LC) transaction supporting Tainan Spinning, while the the importer was supported by Vietnam-based HDBank, the issuing bank.
HDBank is the first Vietnamese based bank to have accomplished the full import LC transaction flow from issuance to presentation and settlement. This transaction marks the first time HDBank has utilised the blockchain network, and the first time CTBC Bank has worked with Singapore-based Contour introducing the network to the textile industry, Contour said.
Contour’s decentralised network allows all parties to have visibility of the trade while also ensuring that no single organisation—including Contour—controls all the data. This ensures that both banks, importers and exporters have improved visibility without compromising security.
“The inefficient paper-based processes which have plagued international trade for decades are not fit for purpose. Instead, the future of trade will be without barriers, allowing collaboration across the entire trade ecosystem. The recent transaction has shown how our network can deliver for banks of varying sizes and across different industries. As we move into 2021, we aim to further these goals, delivering an inclusive trade environment for all,” Contour chief executive officer Carl Wegner said.
