A bank clerk counts Chinese yuan banknotes at a branch of Industrial and Commercial Bank of China in Huaibei, Anhui province. Photo by Reuters /Stringer
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 told VnExpress International: “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% year-on-year to US$46.82 billion, with Vietnam’s exports accounting for US$16.62 billion.
Exports to China had risen 61.5% against 2016 to US$35.46 billion in 2017, according to data from the International Monetary Fund, as cited by Bloomberg.
The Ministry of Industry and Trade said it is likely that two-way trade would hit US$100 billion this year.