Traders trading across borders with China are not allowed to pay in cash.

This is the content of the draft Circular that the State Bank of Vietnam is seeking comments on. Border residents, when buying and selling goods across the border, can still pay in CNY or VND in cash.

The State Bank of Vietnam (SBV) is seeking comments on the draft Circular amending and supplementing a number of articles of Circular 19/2018/TT-NHNN dated August 28, 2018 (Circular 19) guiding foreign exchange management for Vietnam-China border trade activities.

According to the draft, traders are only allowed to pay via banks when trading and exchanging goods across borders. The Vietnam Banking Association proposed to keep the content of "Payment in VND cash or CNY cash" of Circular 19.

However, the State Bank of Vietnam said that the removal of payment methods in CNY or VND cash for cross-border trading and exchange of goods by traders is to comply with the provisions of Point c, Clause 2, Decree 122/2024/ND-CP (Cash payment only applies to trading and exchange of goods by border residents).

According to the State Bank, there are currently no cash payments for exporting goods through secondary border gates and border openings of Vietnamese traders.

The Banking Association also suggested that when amending Circular 19, the State Bank should review and reconsider the regulations on buying and selling CNY by Vietnamese traders and buying VND/VND, buying CNY by Chinese traders (Articles 6 and 7 of Circular 19).

According to the Association, it should be regulated that traders can conduct transactions at "licensed banks" instead of only buying and selling with "border bank branches" to create more favorable conditions in terms of procedures and paperwork when conducting foreign currency transactions for customers.

However, the State Bank did not accept this proposal because the purchase and sale of VND and CNY in Article 6 and Article 7 of Circular 19 are related to Vietnam - China border trade activities, so it is only implemented through border bank branches to ensure compliance with relevant legal provisions (Payment and Cooperation Agreement between the State Bank of Vietnam and the People's Bank of China signed in 1993 (re-signed in 2003), Foreign Exchange Ordinance 2005 (amended and supplemented), Circular 19/2018/TT-NHNN (amended and supplemented by Circular 55/2024/TT-NHNN).

Source: https://baodautu.vn/thuong-nhan-giao-dich-bien-mau-voi-trung-quoc-khong-duoc-thanh-toan-bang-tien-mat-d297888.html