Mixuebingcheng’s digital transformation in Vietnam drives ASEAN expansion
Published: Feb 2025
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Mixuebingcheng Group
Photo of Jiang Jianwei, Mixuebingcheng Group and Manoj Dugar, HSBC.
Zhang Yu
Treasurer
Jiang Jianwei
Head of Global Treasury Team
Wu Kunheng
Head of Global Financial System Construction Team
Mixuebingcheng (MXBC), founded in 1997 and headquartered in Henan, is a national chain brand which focuses on creating ice cream and tea drinks targeting young people and students’ groups. MXBC is present in 11 markets in Asia, with over 32,000 stores across China.
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The challenge
Mixuebingcheng’s (MXBC’s) overseas expansion in ASEAN has been extremely rapid. Since opening its first store in Hanoi, Vietnam, in 2018, the company has grown its presence to more than 4,000 stores across Indonesia, Vietnam, the Philippines, Singapore and Thailand. As MXBC’s business grew in the region, it sold more franchises, with new accounts and banking relationships opened locally, while disparate ERP systems were also setup in each market, giving rise to an increasingly fragmented treasury infrastructure.
At group treasury level, MXBC had selected a new global ERP vendor, Yonyou, and developed its own online franchisee purchasing system to streamline the procurement process for its buyers (franchisees), which were to be implemented across all 11 markets – as part of its digital transformation.
However, embarking on the transformation in ASEAN posed challenges, given the diversity in language, cultures, currencies and regulatory regimes of each individual market. With the popularity of digital payments in the region, MXBC had also relied on multiple local third-party payment service providers (PSP) for collections in each market – this not only required manual reconciliation efforts, but also increased overall costs for the firm.
MXBC sought a banking partner with an extensive footprint in ASEAN to streamline its collections approach in the region. It was also critical that any new banking solution be integrated with MXBC’s new ERP and TMS systems.
The solution
MXBC mandated HSBC as its main collection bank in ASEAN to pilot the transformation project in Vietnam. Running in parallel with the set-up of its new ERP and TMS system, MXBC adopted HSBC’s dynamic QR code solution via API connectivity – a key component to digitalising collections.
This allows MXBC’s buyers (franchise store owners) in Vietnam to order raw materials via MXBC’s TMS platform and simply scan a dynamic QR code on the portal to make payments. The dynamic QR code enables MXBC’s buyers to make payments via NAPAS, Vietnam’s 24/7 real-time payment rail. This includes payments from all NAPAS member banks as well as e-wallet providers that support VietQR. The dynamic nature of the QR means payment details (ie amount and reference info) are pre-filled so buyers can simply review and confirm the payment.
This has enabled sales proceeds to be instantaneously credited into MXBC’s account 24/7, without the need to be routed through third-party PSPs. With real-time collections, MXBC has benefited from enhanced working capital while also digitalising payments to reduce risks associated with manual cash handling.
Daily collection reports embed order reference numbers into MXBC’s new ERP and TMS systems via HSBC’s automated file delivery solution, facilitating the automatic reconciliation of collections via MXBC’s own ERP. This has been a game-changer for MXBC as overseas cash can now be visible within the same system.
With the successful pilot in Vietnam, MXBC is expanding the solution to Indonesia, Thailand, the Philippines and Malaysia by the end of 2024.
China Construction Bank supports MXBC’s daily collections and payments business.
Best practice and innovation
MXBC’s adoption of the dynamic QR collection solution in Vietnam marks a significant step towards simplifying its treasury infrastructure in ASEAN and globally. With its rapid expansion plans and increasing number of franchise stores, it is important that MXBC continue to modernise its payment methods to keep up with the fast-evolving landscape while ensuring a simple, convenient and secure customer experience.
Key benefits
Cost savings.
Headcount savings.
Number of banking partners/bank accounts reduced.
Process efficiencies.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Shirley Leong
Head of Commercial Banking Sales, Asia Pacific, Global Payments Solutions, HSBC
At HSBC, we have been working closely with Mixuebingcheng to bridge key operational gaps and deliver more seamless payment experiences for their end customers while enhancing reconciliation with enriched information.
A big congratulations to Mixuebingcheng on their successful pilot in Vietnam that seamlessly integrates real-time payments via NAPAS with their new ERP and TMS systems. The positive results validate their readiness to embark on the next phase of transformation and we look forward to continuing our partnership as they replicate the solution across other markets in ASEAN.
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