According to the circular issued by the State Bank of Vietnam on Tuesday, individuals and certain kinds of organisations can use yuan for purchasing goods and services starting October 12. The payment can be made via banks or in cash in yuan or in Vietnamese Dong, Xinhua news agency reported.
"The new circular has completed a legal framework for payment in border areas, and has standardized foreign exchange activities in the areas," Can Van Luc, Vietnamese banking and finance expert, senior advisor to the Chairman of the Bank for Industry and Development of Vietnam, said on Thursday.
"The implementation of the new circular will facilitate payment in Vietnam-China border areas, encourage and promote their border trade," he said.
"Payment in yuan through banks and in cash in border areas is convenient. So the new circular is good for us because it formalizes the payment," she said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)