Inspired by a former prime minister’s vision, Vietnam has become the third nation to produce its own polymer currency substrate.
Inspired by a suggestion from the late Prime Minister Vo Van Kiet, Vietnam gradually researched, adopted, and eventually mastered the technology behind polymer banknotes. These high-security bills, with rigorous standards for durability and anti-counterfeiting, ushered in a new era of national monetary security.
Australia introduced the world’s first polymer banknote in 1988.
From a five-dollar note to a national breakthrough
"In the 1990s, the monetary situation was extremely volatile," recalled Cao Sy Kiem, former Governor of the State Bank of Vietnam.
“When Prime Minister Vo Van Kiet personally handed me a five-dollar Australian note, I felt an immense weight of responsibility,” he said, shaking his head at the memory of that turbulent time.
The AUD 5 bill was one of the most significant in Australia’s currency system, not only for its symbolic value but also because it marked a technological leap. In 1988, Australia became the first country in the world to issue polymer banknotes to combat counterfeiting.
Stormy years of transition
Cao Sy Kiem, then Governor of the State Bank, was tasked with pioneering polymer note research.
For nearly seven decades, Vietnam’s banking sector has quietly but persistently accompanied the country’s historical journey, laying the foundation for a secure and independent financial system.
Established in 1951 after separating from the Ministry of Finance, the central banking system faced immense challenges. In its early days, Vietnam printed money manually, and even with later improvements, it relied on technical support from China, East Germany, and the former Soviet Union.
Such dependency posed serious national security risks. By 1991, amid growing pressure for monetary autonomy, the Party and State made a strategic decision: Vietnam had to be self-reliant in banknote production. That year, the National Money Printing Factory was officially inaugurated.
The decision was not only economically driven but also a response to the alarming prevalence of counterfeit currency.
Former Prime Minister Vo Van Kiet laid the foundation for Vietnam’s currency innovation.
In the early 1990s, fake money flooded the market. The Ministry of Public Security’s Economic Synthesis Department launched investigations and arrests. In 1993, a major operation codenamed “TG93” dismantled a trafficking ring smuggling 15 tons of counterfeit bills hidden in two containers from the northern border.
General Nguyen Khanh Toan, former Deputy Minister of Public Security, oversaw the case, while Lieutenant General Vu Hai Trieu, then Director of the Economic Security Department, directly led the operation.
Counterfeiting even extended to promissory notes. In 1994, over a million counterfeit 1-million-dong notes were discovered, prompting an emergency recall by the central bank. By 1995, large volumes of counterfeit money from overseas were entering Vietnam.
After visiting Australia in 1993, Prime Minister Vo Van Kiet returned with a polymer AUD 5 bill and summoned Governor Cao Sy Kiem. Handing him the note, he issued a commanding instruction: “Study and research this material and technology to protect the Vietnamese currency.”
Kiem was momentarily stunned.
Luong Ngoc Anh and his company Q&T pioneered Vietnam’s PolySecure technology.
He understood that the small note in his hand carried the weight of national trust and security.
That moment sparked sleepless nights filled with complex questions and intense pressure. He began to feel that the country’s hope for monetary independence rested on this next bold step.
Soon afterward, 18 inter-ministerial delegations were sent to study anti-counterfeiting technologies in countries with advanced monetary systems. Twelve of them reported strong support for adopting polymer banknotes, citing advantages such as durability, counterfeit resistance, and resilience in Vietnam’s humid, flood-prone climate.
Cao Sy Kiem recalled how the late Prime Minister remained deeply engaged and hands-on in steering the initiative.
Despite many hurdles, on December 17, 2003, Vietnam officially issued its first polymer banknotes, effectively curbing counterfeiting and marking a turning point in the nation’s monetary security.
However, a new dependency emerged: all polymer substrates had to be imported, leaving Vietnam vulnerable to external price fluctuations and delivery timelines.
Vietnam conquers PolySecure technology
Vietnam launched its own polymer notes in 2003 to counter widespread counterfeiting.
From 2023, Vietnam ended its reliance on imported substrate for currency printing.
Looking back on those challenging early days, Luong Ngoc Anh, Chairman of Q&T High-Tech Polymer Company - the supplier of substrates to the National Money Printing Factory - spoke of the formidable path to mastering a technology that only Australia and the UK had previously controlled.
“In the beginning, accessing polymer currency technology was nearly impossible. Every formula and material was top secret,” he said.
But those very challenges became the proving ground for Vietnamese engineering determination.
"Why don't we produce our own polymer substrate when it's a billion-dollar market directly tied to national security?" Ngoc Anh asked himself, setting out on a journey no one else in Vietnam had dared take.
He knew the obstacles went beyond high-tech requirements; skepticism about whether a 100% Vietnamese company could do what global giants had monopolized for decades was just as daunting.
The journey resembled scaling a perilous summit. But Ngoc Anh believed Vietnam could never advance if it remained perpetually reliant on others.
After years of research, in 2022, his company announced a historic achievement: the development of PolySecure technology, making Vietnam the world’s third country capable of independently producing multilayer polymer banknote substrates. Their product not only met but exceeded international standards.
From August 2023, Vietnam’s National Money Printing Factory began using domestically produced substrates based on Vietnamese-owned technology, ending more than two decades of import reliance.
The next breakthrough came with PolySecure - Shield, a revolutionary advancement that embeds anti-counterfeiting features within the substrate layers, instead of merely printing them on the surface. This results in enhanced security, longer currency lifespan, and significantly reduced production costs.
According to Tran Le Hong, Deputy Director of the Intellectual Property Office under the Ministry of Science and Technology, Q&T has filed 18 patent applications, of which 5 have been granted patents and 1 utility solution has been registered.
Monetary security through made-in-Vietnam technology
In the past, Vietnam had to wait 6 to 9 months for imported substrates. Now, domestic suppliers can meet orders within a month.
This agility eliminates risks in the global supply chain and shields Vietnam from price and timing manipulations by foreign monopolies.
Q&T’s cooperation with Crane Currency marked a strategic partnership with the U.S.
At a macro level, this represents a major safeguard for national monetary security. In a world of geopolitical and financial instability, owning core technology is a shield against external risks.
Economically, the impact is equally profound. Over the past 20 years, Vietnam spent around $1 billion importing banknote substrate. With PolySecure, that foreign currency remains in Vietnam, supporting the local economy and creating thousands of skilled jobs.
Over 90% of materials used are sourced domestically, creating an entirely new value chain for Vietnam’s high-tech industry.
And Vietnam is now looking beyond its borders.
In March 2023, Q&T signed a strategic partnership with Crane Currency, the world’s top banknote company and exclusive supplier of paper for the US dollar.
US Ambassador Marc E. Knapper described the collaboration as "a vivid demonstration of the Vietnam-US strategic partnership in high-security sectors."
Vietnam’s production facility at Hoa Lac Hi-Tech Park has since welcomed diplomatic delegations from countries like Pakistan, Nigeria, and South Africa, all eager to learn more about PolySecure.
Vietnam has officially placed its name on the world map for polymer currency production, competing on equal footing with the global giants.
In a globalized world, mastering advanced technology not only reflects national capacity but also affirms Vietnam’s vision and determination to rise through homegrown innovation.
Bringing Resolution 57 to life
The journey of Vietnam’s polymer banknotes is more than a technological achievement. It is a living embodiment of the innovative spirit outlined in Resolution 57-NQ/TW: “Liberate scientific thinking and promote innovation for national prosperity.”
Mr. Cao Sy Kiem.
When a nation dares to think big and stay the course, it can rise to global leadership. This is the essence of Resolution 57, which positions science, technology, and innovation as the essential path to becoming a developed nation.
Cao Sy Kiem expressed his pride that Vietnam can now independently produce polymer banknote substrates.
He emphasized how Vietnam’s polymer currency outperforms the previous paper versions in both durability and anti-counterfeiting measures.
This technological milestone reflects the Vietnamese spirit of refusing dependency and daring to take the hard path toward global standing.
With internationally recognized patents, collaborations with top-tier global companies, and diplomatic astonishment at Vietnam’s achievements, the nation has asserted a new position on the world’s technological map.
Enterprises: At the heart of innovation
Tran Le Hong noted that the PolySecure case proves Vietnamese enterprises can compete globally.
Vietnamese companies are now capable of mastering core technologies, building robust intellectual property strategies, and commercializing breakthroughs effectively.
When science, technology, and intellectual property rights converge with supportive policy, scientific potential becomes a real driver of economic and social progress - exactly as envisioned in Resolution 57.
Vietnamnet.vn
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