From October 12: Chinese Yuan can be used for payment at the Vietnam - China border
Traders and residents of the Vietnam - China border who conduct border trade activities between the two countries can use freely convertible foreign currencies, VND or CNY, to pay for goods and services.
The State Bank has issued Circular No. 19/2018/TT-NHNN guiding foreign exchange management for Vietnam-China border trade activities. This Circular guides Decree No. 14/2018/ND-CP dated January 23, 2018 of the Government detailing border trade activities and replaces Decision No. 689/2004/QD-NHNN dated June 7, 2004 on promulgating payment regulations in the purchase, sale and exchange of goods and services in border areas and border gate economic zones of Vietnam-China.
Circular 19 will take effect from October 12, 2018.
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The State Bank of Vietnam said that the subjects of application of the Circular are Vietnamese border traders and residents, Chinese border traders and residents who conduct cross-border trade activities between Vietnam and China; Commercial banks and foreign bank branches licensed to conduct foreign exchange activities in Vietnam (referred to as licensed banks in the Circular); Branches of licensed banks located in border areas and economic zones of Vietnam and China (referred to as border bank branches in the Circular); Duty-free business organizations, service providers in isolated areas at international border gates, bonded warehouse business organizations in border areas and economic zones of Vietnam and China and other organizations and individuals related to payment activities in cross-border trade between Vietnam and China.
From October 12, 2018, traders and residents of the Vietnam-China border who conduct cross-border trade activities can use freely convertible foreign currencies, VND or Chinese Yuan (CNY) to pay for goods and services. Payment methods include payment via bank, in VND or CNY in cash.
In addition, the Circular also regulates a number of other foreign exchange activities such as payment entrustment activities in CNY, export and import activities in CNY cash and VND cash; and specifically regulates the responsibilities of the State Bank branches in border provinces, licensed banks as well as individuals, traders and other organizations to closely and effectively monitor and manage foreign exchange management activities in Vietnam - China border trade.
