From September 15, 2025, Vietnam will officially eliminate the use of cash in border trade transactions with China. The move is part of a revised regulation just signed by the Governor of the State Bank of Vietnam.

Circular No. 17/2025/TT-NHNN, known as Circular 17, amends Circular No. 19/2018/TT-NHNN on foreign exchange management for cross-border trade between Vietnam and China.

The most significant change introduced by Circular 17 is the repeal of Article 5 in Circular 19, which previously allowed cash payments in either Vietnamese Dong (VND) or Chinese Yuan (CNY).

According to the new rule, permitted payment methods now include bank transfers using freely convertible foreign currencies, transfers in CNY through border bank branches, and transfers in VND through border bank branches.

Additionally, clearing payments - where traders settle only the difference between the value of imports and exports - will also be allowed, but must go through licensed banks.

The circular also removes several provisions related to the collection and handling of cash in border trade.

In an earlier explanation during the consultation phase, the State Bank of Vietnam stated that the removal of cash payments is intended to bring the regulation in line with the country’s overall legal system, reflect the reality of modern cross-border commerce, reduce smuggling and commercial fraud, and ensure national monetary security.

Circular 17 will officially take effect on September 15, 2025.

Tuan Nguyen