Vietnam allows use of yuan at Chinese border
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Vietnamese can trade in yuan at the border with China, the State Bank of Vietnam has decreed.
It means the transactions that traders and residents have been doing informally in the yuan for long along the border gets legal sanction from October 12.
Economist Nguyen Tri Hieu said “There have not been any specific regulations on using the yuan in transactions. This will be the first.”
The new regulation would also allow Chinese tourists to pay for goods and services in their own currency in border areas, he added.
Vietnam recently became China’s largest trade partner in Southeast Asia. Bilateral trade in the first half of this year rose 17 percent year-on-year to $46.82 billion, with Vietnam’s exports accounting for $16.62 billion.
Exports to China had risen 61.5 percent against 2016 to $35.46 billion in 2017, according to data from the International Monetary Fund.
The Ministry of Industry and Trade said it is likely that two-way trade would hit $100 billion this year.
Questions & Answers
Q.What specifically does the new Vietnamese regulation permit regarding the Chinese yuan?
What specifically does the new Vietnamese regulation permit regarding the Chinese yuan?
The new regulation permits Vietnamese citizens to use the yuan for trade along the border with China. It also allows Chinese tourists to pay for goods and services in their own currency within these border regions.
Q.How significant is China as a trade partner for Vietnam currently?
How significant is China as a trade partner for Vietnam currently?
Vietnam has recently become China's largest trade partner in Southeast Asia. Bilateral trade reached $46.82 billion in the first half of this year, with a projected total of $100 billion for the entire year.
Q.When did the informal use of the yuan along the border become formally sanctioned?
When did the informal use of the yuan along the border become formally sanctioned?
The informal transactions that traders and residents had been conducting in yuan along the border received legal sanction from October 12. Economist Nguyen Tri Hieu noted this was the first specific regulation.
Q.What was the growth in Vietnam's exports to China recently?
What was the growth in Vietnam's exports to China recently?
Vietnam's exports to China increased by 61.5 percent in 2017 compared to 2016, reaching $35.46 billion. In the first half of this year, Vietnam's exports accounted for $16.62 billion of total bilateral trade.
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