On August 28, 1818, the State Bank issued Circular No. 19/2018/TT-NHNN guidelines on foreign exchange management of border trade activities between Vietnam and China. This Circular takes effect on October 12, 2018.
Accordingly, the State Bank shall issue licenses for banks located in the border of Vietnam. At these branches traders, Vietnamese as well as Chinese may set up accounts, withdraw money, send money, pay and other banking activities with both VND and CYN to serve their business activities, exchange of goods. In particular, the State Bank of Vietnam now allows border banks to enter into an agreement with the Bank of China to perform the mandated payment for commercial activities in the border area..
Thus, with the issuance of Circular No. 19/2018/TT-NHNN, residents and traders of the two countries Vietnam and China in the border area can make the payment quickly, It also helps to reduce tax losses and strengthen foreign exchange control, ensuring national currency security.