From January 1, 2029, Vietnamese residents engaging in cross-border trade, whether buying, selling or exchanging goods, will have to go through import and export procedures in person, according to the Vietnam News Agency. From January 1, 2030, goods can only be exported or imported at specific locations, including international border crossings, major border crossings (bilateral crossings), sub-border crossings, customs clearance routes, and routes designated for transporting goods at international border crossings. This means that Vietnamese enterprises will stop exporting unofficial quotas to the Chinese market from January 1, 2030 onwards.

Recently, the Vietnamese government issued Decree No. 122, which amends and supplements certain provisions of Decree No. 14 of 2018 on cross-border trade activities. According to the new decree, the Ministry of Finance in 2029 will report to the Government for a study and decision on adjusting the tax exemption limit and tax exemption amount for goods imported by border residents for cross-border trade.

Payment methods for cross-border trade have also been adjusted, and three payment methods are still allowed, including payment through banks, offset payment between exported and imported goods and services (with the balance settled through banks), and cash payment. However, under the new provision, cash payment is only applicable to the sale or exchange of goods between border residents.

In the same vein, the decree also adds a new provision on the criteria for goods in border trade activities. According to the new regulation, goods traded across the border by enterprises and border residents must meet the standards, quality requirements, traceability provisions and other conditions stipulated in the importing country's laws.

The tax exemption for Vietnam's border trade is now VND8 million per person per month, equivalent to 96 million dong per year, which translates to about 27,300 yuan or so. In order to take advantage of the tax benefits of border trade, many goods such as cassava, lychee, watermelon, etc., which are allowed to be exported under regular trade, are also exported to China through the border trade route.

Goods imported through border trade are not counted as part of the import quota, and although this is nominally a convenience for the border people, many traders have taken advantage of this policy to import and export large quantities of goods. Fresh fruits and vegetables are still traded in the "rally" mode because the transactions between the two sides are not standardized enough. The trading parties do not sign contracts, do not meet the requirements of border trade management, there are greater risks. Coupled with the strong seasonality of Vietnamese fruits and vegetables, a large number of Vietnamese businessmen scramble to transport goods to the ports during the production season, the number of which far exceeds the capacity of customs clearance, leading to congestion at the ports from time to time.