The Da Nang authorities have recently taken stronger measures to deal with the problem of Chinese tourists using their yuan currency to pay for local services.  However, this issue has yet to be resolved effectively.

Local musician Nguyen Duy Khoai, who owns a beverage store on Phan Chau Trinh Street, said that his store often serves a large number of Chinese tourists during the cruise ship season.  He remarked that he has already displayed a sign, written in Vietnamese, Chinese and English, which reads: “Payments in yuan currency are unacceptable here”.

Customers at musician Khoai’s beverage store

Mr Khoai added that the majority of Chinese tourists who visit his store do bring Vietnamese banknotes with them, but they insist on using their yuan currency to pay for services at the store.  Once his store’s employees refuse, the Chinese customers eventually agree to pay in Vietnamese currency.

According to local Chinese-speaking tour guides, many traders at the Han Market do accept payments in yuan currency from Chinese buyers.

In a similar vein, some local stores selling Vietnamese specialities, and restaurants which are attractive to the Chinese tourists, are also willing to receive yuan currency.

It is reported that some other countries in the South East Asia region now accept payments in yuan.  Chinese tourists therefore assume that the same is true in Viet Nam. 

The Director of the city’s branch of the State Bank of Viet Nam (SBV), Mr Vo Minh, remarked that no illegal foreign currency exchange transactions have been reported by local banks.

Under the national laws, foreign currencies are not permitted to be used to pay for services in Viet Nam.  Any violations of the law can bring fines of between 200 million and 250 million VND.

Mr Minh also stressed the need for the city authorities to increase the monitoring of illegal transactions in foreign currencies in the city.

The focus will be on raising awareness of local residents about the national regulations on the use of foreign currencies, especially traders in local markets.