The State Bank of Vietnam issued Circular No. 19/2018/TT-NHNN guiding foreign exchange management for border trade between Vietnam and China.

According to Circular No. 19/2018/TT-NHNN of the State Bank of Vietnam, the Vietnamese trader conducting cross-border trade between Vietnam and China may use a CNY payment account opened at the bordering branch to make collections and payments as follows:

1. Collections:

- Revenue in CNY from cross-border sales through transfer;

- Collection of CNY in cash from export through the auxiliary border checkpoint or bordering crossing between Vietnam and China as prescribed in Article 5 herein;

- Revenue in CNY from payment for the difference in value between exports and imports through transfer;

- Transfer of CNY to payment account of the same trader opened in another bordering branch;

- Depositing of CNY in cash by the employee working in China to the account opened at the bordering branch from which cash was withdrawn. When depositing the cash to the account, the trader must present the documents relating to the money withdrawal and the entrance-exit declaration on which the amount of CNY in cash is certified by the checkpoint customs. CNY in cash must be deposited to the account within 60 days from the entrance date specified in the entrance-exit declaration;

- Revenue from purchase of CNY transferred through a bordering branch.

2. Payments:

- Payment in CNY by transfer for goods and services purchased across the Vietnam – China border;

- Payment in CNY by transfer for the difference in value between the exports and imports;

- Transfer of CNY cash to a CNY payment account opened by the same trader at another bordering branch;

- Withdrawal of CNY in cash by a Vietnamese trader’s employee working in China;

- Sale of CNY to a bordering branch.

View more at Circular No. 19/2018/TT-NHNN of the State Bank of Vietnam, effective from October 12, 2018.

- Thanh Lam -

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