Illustrative image (Source: VNA)
Lao Cai (VNA) – A conference discussing the management of foreign exchange activities in Vietnam-China border trade took place in the northern mountainous province of Lao Cai on May 26

The event underscored the need to amend Decree 89/2016/ND-CP stipulating requirements for foreign currency exchange agents and payment services of economic organisations, and the draft Circular in place of Decision No.689.2004/QD-NHNN on payment regulations in trade of goods and services in border areas and border economic zones between Vietnam and China.

Nguyen Ngoc Canh, Director of the State Bank of Vietnam (SBV)’s Foreign Currency Management Department, expressed concern over shortcomings in the management of Chinese yuan exchange, particularly in border areas.

Licensing requirements for individual foreign exchange desks remain too simple, resulting in their massive presence that makes it hard for the State management, he said, adding that it is necessary to issue particular conditions and requirements to ensure close control and effectively uphold the use of currencies of border-sharing countries.

The draft amended decree rules that individual foreign exchange desks could continue their activities within one year since the decree takes into force. After such duration, they must apply for business establishment so that the SBV could consider licensing their currency exchange activities.

Meanwhile, the draft circular also revokes regulations on licensing the collection of Chinese yuan in cash for duty-free shops and providers of services for foreigners.-VNA