VietnameseCircular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank guiding the implementation of Decree No.63/1998/ND-CP dated August 17, 1998 of the Government on foreign exchange management
ATTRIBUTE
Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank guiding the implementation of Decree No.63/1998/ND-CP dated August 17, 1998 of the Government on foreign exchange management
| Issuing body: | State Bank of Vietnam | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 01/1999/TT-NHNN7 | Signer: | Duong Thu Huong |
| Type: | Circular | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 16/04/1999 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Finance - Banking |
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THE STATE BANK ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness ---------- |
No: 01/1999/TT-NHNN7 | Hanoi, April 16, 1999 |
CIRCULAR
GUIDING THE IMPLEMENTATION OF DECREE No.63/1998/ND-CP OF AUGUST 17, 1998 OF THE GOVERNMENT ON FOREIGN EXCHANGE MANAGEMENT
Pursuant to Article 45 of Decree No.63/1998/ND-CP of August 17, 1998 of the Government on foreign exchange management, the State Bank of Vietnam hereby guides the implementation of such Decree as follows:
Part One
GENERAL PROVISIONS
Chapter I
OBJECTS AND SCOPE OF REGULATION
SECTION I.- OBJECTS OF APPLICATION
This Circular shall apply to Vietnamese organizations and individuals on the Vietnamese territory and overseas and to foreign organizations and individuals on the Vietnamese territory that have foreign exchange and are engaged in foreign exchange transactions.
SECTION II.- THE SCOPE OF REGULATION
1. In the Socialist Republic of Vietnam, all foreign exchange transactions by organizations and individuals shall have to comply with the provisions of the Decree on foreign exchange management and comply with the State Bank’s specific guidance in this Circular and other law provisions on foreign exchange and foreign exchange transactions.
2. In the Socialist Republic of Vietnam, foreign exchange is only circulated through the State Bank, credit institutions licensed by the State Bank to conduct foreign exchange transactions and through organizations as well as individuals that are licensed to conduct foreign exchange transactions according to the provisions of this Circular.
Residents and/or non-residents that are organizations or individuals shall be allowed to receive payment in foreign currency(ies) on the Vietnamese territory under the following regulations:
a/ Residents being organizations and individuals receive payment in foreign currency(ies) transferred through bank accounts under contracts for export/import entrustment (between the entrustor and the entrustee);
b/ Residents being organizations receive payment in foreign currency(ies) transferred through bank accounts under the provisions on internal transfer of foreign currency(ies) (between units having legal person status and dependent-accounting units and vice versa);
c/ Residents and/or non-residents being organizations licensed to provide international services in the fields of aviation, navigation, post and telecommunications, insurance and tourism may receive payment in foreign currency(ies) transferred through bank accounts according to the following regulations:
Aviation: Foreign currency(ies) may be collected from:
- The sale of vouchers on the transport of passengers and cargo on international air routes to all objects;
- The sale of vouchers on the transport of passengers and cargo on domestic routes to non-residents;
- The provision of services in piloting agency, supply of fuel, foodstuff and other services for foreign air crews at Vietnam�s international airports.
Navigation: Foreign currency(ies) may be collected from:
- The sale of vouchers on the maritime transport on international sea routes to all objects;
- The sale of vouchers on the transport of passengers and cargo on domestic routes to non-residents;
- The provision of piloting services, sea port services, supply of fuel, foodstuff and other services for foreign shipping firms at Vietnam�s sea ports.
Post-telecommunications: Foreign currency(ies) may be collected from the provision of post and telecommunications services to non-residents being organizations and individuals in Vietnam.
Insurance: Premiums may be collected in foreign currency(ies) from:
- Export and import goods insurance, international aviation and navigation transport insurance and petroleum insurance for all objects;
- Insurance for organizations and individuals, that are non-residents in Vietnam.
Tourism: Foreign currency(ies) may be collected from the organization of international tours for all subjects.
d/ Residents being organizations which act as foreign exchange agents for banks shall be entitled to collect foreign currency(ies) at the foreign exchange desks. The foreign currency exchange shall comply with the State Bank�s Regulations on foreign exchange desks;
e/ Residents being organizations which sell duty-free goods and provide services in departure lounges of international border gates (airports, seaports, land bordergates) and at bonded warehouses may post up prices in foreign currency(ies) and receive payment in foreign currency(ies) from the sale of goods and the provision of services;
f/ Residents being tax agencies, customs authorities, border gate police and other agencies shall be entitled to collect taxes, entry visa fees at international border gates and other kinds of charges in foreign currency(ies) in accordance with the provisions of legislation on taxes and charges;
g/ Residents being foreign-invested enterprises or foreign parties to business cooperation contracts, which deal in business offices, working offices, hotels, international hospitals, international schools and other services may receive foreign currency(ies) transferred through bank accounts from non-residents to pay for the renting of houses, working offices and hotels or for hospital fees, school fees as well as other services;
h/ Non-residents being diplomatic missions, consulates and representations of international organizations operating in Vietnam may collect visa fees, consular fees and other fees in foreign currency(ies) in accordance with the international agreements which the Socialist Republic of Vietnam has signed or acceded to;
i/ Residents being foreign contractors may receive payments in foreign currency(ies) transferred via bank accounts from investors; subcontractors may receive payments in foreign currency(ies) transferred via bank accounts from the contractors under signed contracts;
j/ Residents being enterprises which operate in the business fields of hotels, restaurants, supermarkets and stores authorized by banks to act as units accepting international payment cards shall be entitled to receive from customers payment by cards with value in foreign currency(ies) according to international practices.
The payment between card payment banks and the units accepting cards can be effected only in VN dong.
k/ Residents being organizations may receive payments in foreign currency(ies) transferred via bank accounts from export processing enterprises and enterprises in export processing zones under contracts for goods and/or services trading;
l/ Residents and/or non-residents being individuals who are allowed to circulate foreign exchange in forms of deposit, carrying on body may receive foreign currency(ies) transferred from abroad, transfer or carry abroad foreign currency(ies) for allowed purposes, or deposit into banks in forms of personal foreign currency deposits or savings according to the provisions of this Circular;
On the Vietnamese territory, residents and non-residents, that are organizations or individuals, are forbidden to trade in, make payment and provide loans to one another in foreign currency(ies) and to post up the goods and service prices in foreign currency(ies), except where prescribed in this Circular.
m/ Residents and non-residents being foreigners are entitled to receive salaries, bonuses and allowances in foreign currency(ies) in cash or transferred via bank accounts.
n/ Other cases shall be permitted by the State Bank Governor.
For gold of international standard, the circulation thereof shall be specified in Chapter II, Part Six of this Circular.
3. The residents being organizations which have foreign currency revenues in cash as prescribed in Point 2 (e), Section II, Chapter I, Part One of this Circular must have the license to collect foreign currency(ies) in cash in the country, granted by the State Bank.
The dossiers of application for the license to collect foreign currency(ies) in cash shall be addressed to the State Bank (the Foreign Exchange Management Department), including:
a/ The application for the license to collect foreign currency(ies) in cash;
b/ The notarized copy of the decision on the establishment of the organization or the decision to open its office;
c/ The notarized copy of the business registration certificate or the decision of the competent body to permit the sale of duty-free goods or the provision of international services.
Within 15 (fifteen) working days after fully receiving the valid dossiers, the State Bank shall grant or refuse to grant the license to the organization. In case of refusal to grant the license, a written reply must be given to the organization, clearly stating the reasons therefor.
The license to collect foreign currency(ies) in cash granted by the State Bank shall serve as basis for the organization to remit the foreign currency(ies) in cash into the bank account(s).
Organizations with licenses to collect foreign currency(ies) in cash from the sale of goods and provision of services, granted by the State Bank before the effective date of this Circular, shall continue their operation under the granted licenses and have to abide by the regulations stated therein on the collection of foreign currency(ies) in cash and the scope of business activities in collecting foreign currency(ies) in cash.
Particularly, the items of foreign currency(ies) to be collected by resident and non- resident organizations provided for in Point 2.(f) and 2.(h), Section II, Chapter I, Part One of this Circular, shall be collected in accordance with the provisions of law without having to ask for permission from the State Bank; but when the foreign currency(ies) in cash is remitted into the bank, there must be the official letter clearly explaining to the bank contents of the collected amount of foreign currency(ies).
For other cases permitted to collect foreign currency(ies) defined in Point 2, Section II, Chapter I, Part One of this Circular , where arises the demand to collect foreign currency(ies) in cash, the foreign currency(ies) shall be collected in the form of foreign exchange agency for the bank. The use of foreign currency(ies) shall comply with the State Bank�s regulations on foreign exchange desks.
4. The foreign exchange transactions in the border regions between Vietnam and bordering countries and export processing zones shall comply with separate regulations of the Prime Minister.
Chapter II
APPLICATION OF INTERNATIONAL TREATIES, INTERNATIONAL PRACTICES AND FOREIGN LAWS IN FOREIGN EXCHANGE TRANSACTIONS WITH FOREIGN COUNTRIES
1. In cases where an international treaty which Vietnam has signed or acceded to contains provisions other than the provisions of the Decree on foreign exchange management, the provisions of such international treaty shall apply.
2. In cases where it is not banned by Vietnamese legislation, the parties participating in foreign exchange transactions with foreign countries may agree on the application of international practices or foreign laws provided that such application does not cause damage to Vietnam�s interests.
Chapter III
INTERPRETATION OF TERMS
In this Circular, terms defined in Decree No. 63/1998/ND-CP of August 17, 1998 of the Government on foreign exchange management shall be interpreted as follows:
1. Foreign exchange shall include:
a/ Lawful currencies of foreign countries being circulated in the forms of bank-notes and coins;
b/ Instruments of payment in foreign currencies such as checks, payment cards, bills of exchange, bank deposit certificates, postal deposit certificates and other payment instruments;
c/ Papers of foreign currency value such as government bonds, corporate bonds, term bonds, shares and other valuable papers;
d/ The special right to capital withdrawal particularly the currency issued by the International Monetary Fund to be used for reserves and international payment for member countries, which codified as "SDR";
The European common currency is the one used by member countries of the European Union for reserves and payment among such member countries.
Other common currencies used in international and regional payment;
e/ Gold of international standard specified in Point 8, Chapter III "Interpretation of terms", Part One of this Circular;
f/ The being circulated currency of the Socialist Republic of Vietnam (Vietnam dong) in cases where it is transferred in and out of the Vietnamese territory or used as instrument for international payment.
2. The residents being organizations or individuals shall include:
a/ State enterprises, private enterprises, companies, cooperatives and other economic organizations of all economic sectors of Vietnam, which are established and conduct business activities in Vietnam (hereafter referred to as Vietnamese economic organizations);
b/ Foreign-invested enterprises and foreign parties to business cooperation contracts operating under the Law on Foreign Investment in Vietnam, branches of foreign companies, foreign contractors, contractors in partnership with foreign parties and other economic organizations with foreign capital, which conduct business operations in Vietnam not under the Law on Foreign Investment in Vietnam;
c/ Vietnamese credit organizations, joint-venture credit institutions between Vietnam and foreign countries, non-bank credit organizations with 100% foreign capital, foreign banks� branches conducting business operations in Vietnam (hereafter referred to as credit institutions in Vietnam);
d/ State agencies, armed forces units, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds, Vietnamese charity funds operating in Vietnam;
e/ Vietnamese diplomatic missions, consulates, armed forces units, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and Vietnamese charity funds operating overseas; Vietnamese citizens working in these organizations and their dependents;
f/ Representative offices of Vietnamese economic organizations, representative offices of foreign-invested enterprises in Vietnam and representative offices of credit institutions in Vietnam, which operate overseas;
g/ Vietnamese citizens residing in Vietnam; Vietnamese citizens residing abroad for less than 12 months;
h/ Foreigners residing in Vietnam for 12 months or more;
i/ Vietnamese citizens going abroad for tourism, study, medical treatment or visit (regardless of duration).
3. Non-residents being organizations or individuals shall include:
a/ Foreign economic organizations established and conducting business operations overseass;
b/ Vietnamese economic organizations, foreign-invested enterprises in Vietnam conducting business activities overseas;
c/ Vietnamese credit institutions and foreign credit institutions in Vietnam set up and conducting business activities overseas;
d/ Foreign State agencies, armed forces units, political organizations, socio-political organizations, social funds and charity funds operating overseas;
e/ Foreign diplomatic missions, consulates, representative offices of international organizations, representative offices of inter-governmental organizations, representative offices of non-governmental organizations, armed forces as well as political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and charity funds operating in Vietnam; foreigners working in these organizations and their dependents;
f/ Representative offices of foreign economic organizations; and representative offices of foreign credit institutions operating in Vietnam;
g/ Foreigners residing overseas; foreigners residing in Vietnam for less than 12 months;
h/ Vietnamese citizens residing overseas for 12 months or more;
i/ Foreigners arriving in Vietnam for tourism, study, medical treatment or visits (regardless of duration).
Where organizations and/or individuals have not yet been determined as residents or non-residents, the State Bank Governor shall decide.
4. Foreign exchange transactions mean operations of foreign exchange investment, borrowing, lending, guaranty, purchase, sale and other transactions regarding foreign exchange.
5. Foreign exchange rate means the value of a foreign monetary unit calculated in Vietnam�s monetary unit.
6. Foreign currency means the currency of a foreign State or a common currency of many States.
7. Foreign currency(ies) in cash mean bank-notes, coins, traveller�s checks and other similar payment instruments in foreign currency(ies) as prescribed by law.
8. Gold of international standard means gold in cubes, ingot, bars, leaf with the quality of 99.5% or higher and the weight of 1 kg or more and with the gold producers� trade-marks recognized by Gold Association and International Gold Transaction Bureau.
The list of gold producers recognized by the Gold Association and the International Gold Transaction Bureau is prescribed in Annex 2 of this Circular.
9. Licensed banks mean commercial banks, development banks, investment banks, social policy banks, cooperation banks and banks of other forms, which are operating in Vietnam and licensed by the State Bank to conduct foreign exchange transactions.
10. Foreign exchange desks mean organizations permitted by the State Bank to carry out the activities of collecting and exchanging foreign currency(ies) in cash. The foreign exchange desks may be organized directly by the credit institutions licensed to conduct foreign exchange transactions or by other organizations acting as their authorized agents.
11. Current transactions mean transactions between residents and non-residents regarding commodities, services, revenues from direct investment, revenues from investment in valuable papers, foreign loan interests and deposit interests, one-way money transfer and other similar transactions as prescribed by law.
One-way money transfer in current transactions is construed as the transfer of money from abroad into Vietnam or from Vietnam abroad via banks and/or postal service, which is characterized by the financial support, aid, family assistance or personal use without relating to the payment for goods and services.
12. Current payment means making revenues and expenditures for current transactions specified in Annex 3 of this Circular.
13. Capital transactions mean transactions in the transfer of capital into Vietnam or from Vietnam abroad in the fields of direct investment, investment in valuable papers, foreign borrowings and payment of foreign debts, foreign loans and retrieval of foreign loans and other forms of investment under the provisions of Vietnamese law, which increase or reduce the credit assets or debit assets between residents and non-residents.
14. Capital transfer means the transfer of capital from abroad into Vietnam or from Vietnam abroad for the capital transactions specified in Annex 4 of this Circular.
15. Direct investment means the bringing into Vietnam of capital in cash or any kind of property by foreign investors to carry out investment activities according to the provisions of the Law on Foreign Investment in Vietnam or the bringing abroad of capital in cash or any kind of property by Vietnamese investors to carry out investment activities according to investment laws of Vietnam and such foreign country(ies).
16. Investment in valuable papers means the investment in shares, bonds, instruments on monetary markets and the future financial instruments to be issued in Vietnam or the investment by residents in valuable papers issued in foreign countries.
17. Foreign borrowings and payment of foreign debtsmean the residents borrow from and fulfill debt payment obligations to the non-residents in every form, which is accounted in foreign currency(ies).
18. Foreign loans and retrieval of foreign loans mean the residents provide loans to and retrieve debts from non-residents in every form, which is calculated in foreign currency(ies).
19. Oversea accounts are accounts of residents opened at banks operating outside the Vietnamese territory.
Part Two
OPENING ACCOUNTS AND USING FOREIGN CURRENCY(IES) BY RESIDENTS AND NON-RESIDENTS
Chapter I
CONDITIONS AND PROCEDURES FOR OPENING AND USING FOREIGN CURRENCY DEPOSIT ACCOUNTS IN THE COUNTRY BY RESIDENTS
SECTION I.- FOR RESIDENTS BEING ORGANIZATIONS
1. Conditions for opening accounts
Residents being organizations which have sources of foreign currency revenues from current transactions and capital transactions as well as foreign currency revenues mentioned in Point 2, Section II, Chapter I, Part One of this Circular may open and maintain foreign currency deposit accounts at licensed banks.
2. Procedures for account opening and closure.
The residents being organizations, when opening or closing their foreign currency accounts, shall comply with the procedures prescribed by the licensed banks in areas where the accounts are opened.
3. Using accounts.
Revenue: The residents being organizations which have foreign currency deposit accounts may collect foreign currency(ies) into their accounts from the following sources:
a/ Via-bank account transfer from abroad;
b/ Via-bank account transfer in the country with regard to items allowed to be collected according to the provisions in Point 2, Section II, Chapter I , Part One, this Circular;
c/ Via-bank account transfer in the country from the issuance of papers of foreign currency value; interests earned from investment in papers of foreign currecy value;
d/ Via-bank account transfer in the country from the purchase of foreign currency(ies) of credit institutions licensed to carry out foreign exchange transactions;
e/ Foreign currency(ies) in cash remitted (with regard to residents being the organizations defined in Point 2, Section II, Chapter I, Part One of this Circular or permitted by the State Bank to collect foreign currency(ies) in cash upon the export of goods and services).
f/ Foreign currency(ies) in cash brought from abroad and remitted thereinto (with certification by the border-gate customs);
g/ Other sources of foreign currency revenue in the form of via-bank transfer or remittance of foreign currency(ies) in cash when so permitted by the State Bank Governor.
Expenditure: The residents being organizations which have foreign currency deposit accounts may spend foreign currency(ies) therefrom for the following purposes:
a/ Payment for the import of goods and services to foreign parties (including costs arising in relation to goods and services export and/or import);
b/ Payment for goods and services to domestic organizations and individuals, that are permitted to collect foreign currency(ies) according to the provisions in Point 2, Section II, Chapter I, Part One of this Circular;
c/ Payment of the principals, interests, fees and other expenses arising in relation to foreign currency borrowings from domestic banks and foreign borrowings according to current regulations;
d/ Selling foreign currency(ies) to credit institutions licensed to carry out foreign exchange transactions;
e/ Investment in valuable papers issued in foreign currency(ies) and various kinds of securities prescribed by law; payment for the principals and interests for papers and securities of foreign currency value;
f/ Conversion into other payment instruments in foreign currency(ies) such as checks, payment cards and other payment instruments; or conversion into other foreign currency(ies) according to the regulations of licensed banks;
g/ Contribution of capital to the implementation of investment projects as prescribed by the legislation on foreign investment in Vietnam.
h/ Transfer of foreign currency(ies) abroad (by foreign investors) in accordance with the Law on Foreign Investment in Vietnam and other relevant regulations.
i/ Transfer of foreign currency(ies) for overseas investment as prescribed by the legislation on Vietnam’s overseas investment;
j/ Withdrawal of foreign currency(ies) in cash or via bank accounts for individuals working for the organizations when they are sent abroad and for payment of wages, bonuses and other allowances for non-residents and residents that are foreigners working for such organizations;
Residents being foreign-invested enterprises and foreign parties to business cooperation contracts and credit institutions, if their use of foreign currency(ies) is prescribed separately in other legal documents, may use foreign currency(ies) for the purposes prescribed in such documents.
SECTION II.- FOR RESIDENTS BEING INDIVIDUALS
1. Conditions for opening accounts
Residents being individuals who have foreign currency(ies) transferred via banks from abroad or brought along, when entering Vietnam with certification by the border-gate customs and have other lawful sources of foreign currency revenue in Vietnam may open and maintain foreign currency deposit accounts at licensed banks.
2. Procedures for opening and closing accounts
The procedures for opening and closing foreign currency deposit accounts of individual-residents shall be defined by the licensed banks where the accounts are opened.
3. Using accounts.
Revenue: Individual-residents with foreign currency deposit accounts may collect foreign currency(ies) into their accounts from the following sources:
a/ Via-bank account transfer from abroad according to goods and/or services export contracts or from sources of donation or aids permitted by law;
b/ Foreign currency(ies) in cash brought from abroad and remitted thereinto (with certification by the border-gate customs);
c/ Via-bank account transfer in the forms of donation, gift, inheritance under the provisions of law;
d/ Domestic collection of foreign currency(ies) via bank accounts or in cash from the payment of wages, bonuses and other allowances in foreign currency(ies) as permitted;
e/ Other foreign currency revenues permitted by the State Bank Governor.
Expenditure: Individual-residents with foreign currency deposit accounts may deduct foreign currency(ies) from their accounts for the following spending purposes:
a/ Payment for the import of goods and services for organizations and individuals in foreign countries;
b/ Payment for goods and services received by domestic organizations and individuals that are permitted to collect foreign currency(ies) under the provisions of Point 2, Section II, Chapter I, Part One of this Circular;
c/ Remittance abroad (via bank accounts or in cash) to be used for personal purposes as prescribed in Chapter IV, Part Three; Chapter V, Part Four, of this Circular;
d/ Sale to credit institutions licensed to conduct foreign exchange transactions;
e/ Withdrawal of foreign currency(ies) in cash for the purposes of keeping, savings and other purposes permitted by law;
f/ Investment in papers of foreign currency value;
g/ Conversion into other payment instruments in foreign currency(ies) such as checks, payment cards and other payment instruments or conversion into other foreign currencies as provided for by licensed banks;
h/ Donation, gifts, inheritance under the provisions of law;
i/ Residents being foreign individuals may remit abroad the amount of foreign currency(ies) available on their foreign currency accounts as prescribed in Point 3, Section II, Chapter IV, Part Three of this Circular.
4. Foreign currency savings deposit
Individual-residents having foreign currency(ies) may deposit such foreign currency(ies) in savings accounts at licensed banks. The foreign currency savings depositors are entitled to enjoy interests in foreign currency(ies) and to withdraw both principals and interests in foreign currency(ies) according to the regulations on foreign currency savings deposit.
Chapter II
CONDITIONS AND PROCEDURES FOR NON-RESIDENTS TO OPEN AND USE FOREIGN CURRENCY DEPOSIT ACCOUNTS IN THE COUNTRY
SECTION I.- FOR NON-RESIDENTS BEING ORGANIZATIONS OPERATING IN VIETNAM
1. Conditions for account opening
Non-residents being organizations operating in Vietnam that have foreign currency(ies) transferred from overseas via banks or brought along when entering Vietnam with certification by border-gate customs, as well as other lawful sources of foreign currency revenues in Vietnam may open and maintain their foreign currency deposit accounts at licensed banks.
2. Procedures for account opening and closure.
The procedures for opening and closing foreign currency deposit accounts by non-residents being organizations shall be defined by licensed banks where the accounts are opened.
3. Account using.
Revenue: Non-residents being organizations operating in Vietnam that have foreign currency deposit accounts may collect foreign currency(ies) into their accounts from the following sources :
a/ Foreign currency revenue transferred via bank accounts from abroad;
b/ Foreign currency revenue transferred from bank accounts of other non-resident(s).
c/ Foreign currency revenue transferred via bank accounts from the sale of VN dong on VN dong deposit accounts;
d/ Foreign currency revenue transferred via bank accounts, remitted cash (for non-residents being organizations allowed to collect foreign currency(ies) as prescribed at Point 2, Section II, Chapter I, Part One of this Circular);
e/ Foreign currency revenue in cash brought from abroad and remitted thereinto (with certification by border-gate customs);
f/ Other sources of foreign currency revenue permitted by the State Bank Governor.
Expenditure: Non-residents being organizations operating in Vietnam that have foreign currency deposit accounts may deduct foreign currency therefrom for the following spending purposes:
a/ Payment for the import of goods and services to organizations and/or individuals in foreign countries;
b/ Payment for the purchase of goods and services to domestic organizations and individuals that are allowed to collect foreign currency(ies) according to the provisions at Point 2, Section II, Chapter I, Part One of this Circular;
c/ Sale to credit institutions licensed to carry out foreign exchange transactions;
d/ Conversion into other foreign currency payment instruments such as checks, payment cards and other payment instruments or conversion into other kinds of foreign currency according to the regulations of the licensed banks;
e/ Transfer abroad via bank accounts;
f/ Withdrawal of foreign currency(ies) in cash via bank accounts to give to individuals working for the organizations when they are sent abroad on business mission and to pay wages, bonuses and allowances to non-residents and residents who are foreigners working for the organizations;
g/ Withdrawal of foreign currency(ies) in cash to carry abroad or spend in areas where the State Bank permits the collection of foreign currency(ies) in cash on the Vietnamese territory according to the provisions of this Circular;
h/ Transfer into foreign currency accounts of other non-residents;
i/ Donation or gifts according to the provisions of law.
SECTION II.- FOR NON-RESIDENTS BEING ORGANIZATIONS OPERATING OVERSEAS
1. Conditions for account opening
Non-residents being organizations that are operating overseas (hereafter called non-residents being organizations in foreign countries) and have foreign currency(ies) transferred from abroad into Vietnam via banks or brought along by persons who have entered Vietnam with certification by border-gate customs, and other lawful sources of foreign currency revenue may open and maintain their foreign currency deposit accounts at licensed banks.
2. Procedures for account opening and closure.
The procedures for opening and closing foreign currency deposit accounts by non-residents being organizations in foreign countries shall be defined by the licensed banks where the accounts are opened.
3. Account using.
Revenue: Non-residents being organizations in foreign countries that have foreign currency deposit accounts may collect foreign currency(ies) into their accounts from the following sources:
a/ Via-bank account transfer from abroad;
b/ Via-bank account transfer from foreign currency accounts of domestic organizations and individuals that make payments under goods and/or services import and/or export contracts.
Expenditure: Non-residents being organizations in foreign countries that have foreign currency deposit accounts may deduct foreign currency(ies) therefrom for the following spending purposes:
a/ Payment transferred overseas via bank accounts;
b/ Payment to organizations and individuals in Vietnam for their goods and services under goods and/or services export and/or import contracts.
SECTION III.- FOR NON-RESIDENTS BEING INDIVIDUALS
1. Conditions for account opening
Non-residents being individuals who have foreign currency(ies) transferred from abroad into Vietnam via banks or brought along when entering Vietnam with certification by the border-gate customs, and other lawful sources of foreign currency revenue in Vietnam may open and maintain their foreign currency deposit accounts at licensed banks.
2. Procedures for account opening and closure.
The procedures for opening and closing foreign currency deposit accounts by non-residents being individuals shall be defined by the licensed banks where the accounts are opened.
3. Account using
Revenue: Non-residents being individuals that have foreign currency deposit accounts may collect foreign currency(ies) into their accounts from the following sources:
a/ Via-bank account transfer from overseas thereinto;
b/ Foreign currency(ies) in cash brought from abroad and remitted thereinto (with certification by border-gate customs);
c/ Foreign currency revenue transferred via bank accounts or in cash from the payment of wages, bonuses and allowances by domestic organizations, and other sources of foreign currency revenue permitted by Vietnamese law;
d/ Foreign currency revenue transferred via bank accounts from the sale of VN dong on VN dong accounts for foreign currency(ies);
e/ Other sources of foreign currency revenue permitted by the State Bank Governor.
Expenditure: Non-residents being individuals who have foreign currency deposit accounts may deduct foreign currency(ies) therefrom for the following spending purposes :
a/ Transfer abroad via bank accounts;
b/ Payment to domestic organizations and individuals that are allowed to collect foreign currency(ies) as prescribed at Point 2, Item II, Chapter I, Part One of this Circular for the purchase of their goods and services;
c/ Sale to credit institutions licensed to carry out foreign exchange transactions;
d/ Conversion into other payment instruments in foreign currency(ies) such as checks, payment cards and other payment instruments; conversion into other kinds of foreign currency according to the regulations of the licensed banks;
e/ Withdrawal of foreign currency(ies) in cash to bring along when leaving the country or to spend in areas where the State Bank permits the collection of foreign currency(ies) in cash;
f/ Transfer into foreign currency accounts of other non-residents in the country;
g/ Donation, gift or inheritance as prescribed by law.
Chapter III
INDIVIDUALS� RIGHTS TO USE FOREIGN CURRENCY(IES)
1. Residents and non-residents being individuals that have foreign currency(ies) transferred from overseas via banks or brought along when entering Vietnam with certification by the border-gate customs, and other lawful sources of foreign currency revenue in Vietnam are entitled to:
a/ To keep and/or carry them along;
b/ To deposit them in banks in the form of opening personal foreign currency deposit accounts;
c/ To deposit them in banks in the form of foreign currency savings deposits (applicable only to residents);
d/ To sell them to credit institutions licensed to carry out foreign exchange transactions or to foreign exchange desks.
Foreign currency(ies) in the personal foreign currency deposit accounts may be used for the purposes prescribed in Point 3, Section II, Chapter I, and Point 3, Section III, Chapter II, Part Two of this Circular.
2. Residents being individuals that have foreign currency(ies) not from the sources of revenue mentioned in Point 1 above shall not be allowed to open personal foreign currency deposit accounts but only to deposit them in banks in the form of foreign currency savings deposits.
3. Residents and non-residents having personal foreign currency deposit accounts at banks before this Circular takes effect may continue to use the foreign currency(ies) in their accounts for the purposes defined for the opening and using personal foreign currency deposit accounts ( Point 3, Section II, Chapter I and Point 3, Section III, Chapter II, Part Two of this Circular).
As from the date this Circular takes effect, banks shall have to comply with the guidance in this Circular when effecting the opening of personal foreign currency deposit accounts or receiving the foreign currency savings deposits.
Chapter IV
CONDITIONS AND PROCEDURES FOR OPENING AND USING VIETNAM DONG DEPOSIT ACCOUNTS IN THE COUNTRY BY NON-RESIDENTS
1. Conditions for account opening
Non-residents being organizations or individuals in Vietnam that earn Vietnam dong from the sale of foreign currency(ies) to credit institutions and have other sources of revenue in Vietnam dong as permitted by Vietnamese laws may open and maintain their Vietnam dong deposit accounts at banks.
2. Procedures for account opening and closure
The procedures for opening and closing Vietnam dong deposit accounts of non-residents shall be defined by banks where the accounts are opened.
3. Account using
Revenue: The non-residents being organizations or individuals that have Vietnam dong deposit accounts may collect Vietnam dong into their accounts from the following sources:
a/ The sale of foreign currency(ies) on accounts to credit institutions licensed to carry out foreign exchange transactions;
b/ The goods and services supply and different kinds of fees permitted by Vietnamese law.
c/ The receipt of wages, bonuses and other allowances (for individuals entitled to receive such amounts in Vietnam dong at domestic organizations);
d/ Other sources of revenue in Vietnam dong prescribed by Vietnamese law.
Expenditures: The non-residents being organizations or individuals that have Vietnam dong deposit accounts may deduct Vietnam dong therefrom for the following spending purposes:
a/ Payment to residents and non-residents that are domestic organizations or individuals for the purchase of their goods and services;
b/ Payment for the purchase of foreign currency(ies) of credit institutions for transfer abroad;
c/ Withdrawal of Vietnam dong for spending in Vietnam;
d/ Donation, gifts or inheritance as prescribed by law.
Chapter V
OPENING AND USING OVERSEAS ACCOUNTS OF RESIDENTS
SECTION I.- FOR RESIDENTS BEING VIETNAMESE ECONOMIC ORGANIZATIONS, FOREIGN-INVESTED ENTERPRISES AND CREDIT INSTITUTIONS IN VIETNAM
Residents being Vietnamese economic organizations, foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam and credit institutions in Vietnam shall be licensed by the State Bank to open and use foreign currency accounts abroad according to the following regulations:
1. Vietnamese economic organizations licensed to conduct international business activities in the fields of aviation, navigation, post, insurance, tourism, labor export, and to contract overseas projects that require the opening of overseas accounts to make regular revenue-expenditure items, deposits, custodies to guarantee the performance of international bidding contracts; clearance payment or implement international treaties and agreements already signed with foreign countries shall have to send their dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (Department for Management of Foreign Exchange).
The dossiers shall include:
a/ The application for the license to open and use the overseas foreign currency account;
b/ The notarized copies of the decision to set up the enterprise and the business registration certificate;
c/ Other documents issued by the competent bodies of the foreign country(ies) or Vietnam, related to the request, objective and necessity to open overseas foreign currency accounts.
2. Vietnamese economic organizations and foreign-invested enterprises have the demand to open overseas foreign currency accounts in order to make medium- and long-term borrowings valued at 5,000,000 (five million) USD or more or other foreign currency of equivalent value. All these borrowings must be accepted for registration by the State Bank and the lending party requests the opening of foreign currency accounts in order to manage the sources of borrowed capital and monitor the debt repayment. The organizations shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Management of Foreign Exchange).
Such a dossier shall include:
a/ The application for license to open and use overseas foreign currency account;
b/ The notarized copy of the decision on the establishment of the enterprise, the business registration certificate and the investment license;
c/ The capital borrowing contract signed with foreign party and the State Bank�s permit for borrowing registration;
d/ Documents evidencing that the foreign lending party has requested the opening of overseas foreign currency account.
3. Economic organizations permitted by the competent bodies of Vietnam to open overseas branches or representative offices shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Management of Foreign Exchanges).
Such a dossier shall include:
a/ The application for the license to open and use overseas foreign currency accounts;
b/ The notarized copy of the establishment decision and the business registration certificate.
c/ The notarized copy of the Vietnamese competent body�s decision permitting to open the overseas branches or representative offices.
4. Credit institutions wishing to open and use overseas foreign currency accounts to effect the foreign exchange business operation abroad shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Banks and Non-Bank Credit Institutions).
Such a dossier shall include:
a/ The application for the license to open and use overseas foreign currency accounts;
b/ The notarized copy of the establishment and operation license of the credit institution;
c/ The copy of the foreign exchange transaction license granted by the State Bank.
5. Organizations other than subjects operating in the above-said fields and scope, if having demand to open and use overseas foreign currency accounts, shall have to obtain the written consent of the Prime Minister.
SECTION II.- FOR RESIDENTS BEING STATE BODIES, ARMED FORCES UNITS, POLITICAL ORGANIZATIONS, SOCIO-POLITICAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, SOCIO-PROFESSIONAL ORGANIZATIONS, SOCIAL FUNDS, CHARITY FUNDS OF VIETNAM OPERATING IN VIETNAM
Residents being State bodies, armed forces units, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and charity funds of Vietnam, which operate in Vietnam and have the demand to open and use overseas foreign currency accounts to effect foreign borrowings and repayment of foreign debts of the Government, to receive foreign aids or perform other tasks permitted by the Prime Minister shall be licensed by the State Bank to open and use overseas foreign currency accounts. Such organizations shall have to send the dossiers of application for the license to the State Bank (the Department for Foreign Exchange Management).
Such a dossier shall include:
a/ The application for license to open and use overseas foreign currency account;
b/ The notarized copy of the establishment decision;
c/ One of the following documents :
- For the Government’s borrowings and debt repayment: The copy of the contract on the Government�s borrowings and debt repayment, stipulating the opening of overseas foreign currency accounts;
- For reception of aid in foreign countries: The document evidencing that the foreign party requests the opening of overseas foreign currency accounts to receive aid capital of foreign countries;
- The Prime Minister’s written approval of the opening of overseas foreign currency accounts for other cases.
SECTION III.- REPORTING RESPONSIBILITY
Residents being organizations licensed by the State Bank to open and use the overseas foreign currency accounts shall have to report to the State Bank on the situation of opening the overseas foreign currency accounts according to the following regulations:
1. Organizations already licensed by the State Bank to open and use the overseas foreign currency accounts before the effective date of this Circular may continue to use the granted licenses without having to fill in the procedures for new licenses.
2. Organizations licensed after the effective date of this Circular shall, within 15 (fifteen) working days after the opening of the overseas foreign currency accounts, have to report to the State Bank (the Foreign Exchange Management Department) on the opening and use of the overseas foreign currency accounts.
3. The opening, use and closure of overseas foreign currency accounts of organizations licensed by the State Bank to open overseas foreign currency accounts shall comply with the reporting contents and regime prescribed in the licenses.
SECTION IV.- FOR RESIDENTS BEING DIPLOMATIC MISSIONS, CONSULATES, ARMED FORCES OFFICES, REPRESENTATIVES OF POLITICAL ORGANIZATIONS, SOCIO-POLITICAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, SOCIO-PROFESSIONAL ORGANIZATIONS, SOCIAL FUNDS AND CHARITY FUNDS OF VIETNAM OR VIETNAMESE CITIZENS WHILE IN FOREIGN COUNTRIES
Residents being diplomatic missions, consulates, armed forces offices and representatives of political organizations, socio-poitical organizations, social organizations, socio-professional organizations, social funds and charity funds of Vietnam or Vietnamese citizens, while in foreign countries, may open and use overseas foreign currency accounts according to the laws of such countries.
Upon the termination of their overseas stays, the above-said organizations and individuals shall have to close the accounts opened in foreign countries and transfer all the foreign currency balances on the accounts (if any) back to the home country. Where there is a need to leave the foreign currency(ies) abroad in any forms, there must be the written approval of the State Bank Governor.
Chapter VI
MANAGEMENT OF THE OPENING AND USE OF RESIDENTS� DOMESTIC AND OVERSEAS FOREIGN CURRENCY DEPOSIT ACCOUNTS AND THE NON-RESIDENT�S FOREIGN CURRENCY AND VIETNAM DONG DEPOSIT ACCOUNTS
SECTION I.- MANAGEMENT OF THE OPENING AND USE OF RESIDENTS� DOMESTIC AND OVERSEAS FOREIGN CURRENCY DEPOSIT ACCOUNTS AND NON-RESIDENTS� FOREIGN CURRENCY AND VIETNAM DONG DEPOSIT ACCOUNTS
1. The opening and use of the residents’ domestic and overseas foreign currency deposit accounts and the non-residents’ foreign currency deposit accounts and Vietnam Dong deposit accounts shall comply with the provisions in Chapter I, Chapter II, Chapter IV and Chapter V, Part Two of this Circular.
2. The State Bank, depending on the seriousness of violations, shall decide to withdraw the license for the opening of overseas foreign currency deposit accounts already granted to the residents being organizations, that have committed the following acts of violations:
a/ Constantly failing to report on the use of overseas foreign currency accounts according to regulations on the reporting regime;
b/ Using foreign currency in the accounts not for the right purposes prescribed in the licenses;
c/ Continuing to maintain the overseas foreign currency accounts when finishing their term of operation overseas without the approval of the State Bank Governor.
3. Residents being organizations or individuals that operate or live in foreign countries may open and use foreign currency accounts according to laws of such countries.
Where the period of living or operating overseas terminates or expires, a failure to close such accounts or to transfer the remaining balance back home, or a deliberate attempt to leave foreign currency(ies) overseas without the permission of the State Bank Governor shall all be considered acts of violating the regulations on foreign exchange management and be handled according to the current regulations.
SECTION II.- MONITORING AND ACCOUNTING BOOKS
1. The State Bank (the Finance and Accountancy Department) shall elaborate the regime of accounting foreign currency deposit accounts of residents and non-residents, the Vietnam dong deposit accounts of non-residents, which have been opened at banks operating in Vietnam according to the revenue-expenditure contents prescribed in this Circular.
2. Basing themselves on the documents guiding the regime of accounting the foreign currency deposit accounts of residents and non-residents as well as the Vietnam dong deposit accounts of non-residents, banks shall open books to monitor and settle accounts for residents and non-residents that have opened accounts at their respective places.
3. When opening accounts for customers, the banks shall request the account owners to use the foreign currency(ies) thereon (revenue-expenditure) in strict accordance with the regulations of this Circular and other relevant provisions of law.
SECTION III.- TIME-LIMIT FOR GRANTING LICENSES TO OPEN AND USE OVERSEAS FOREIGN CURRENCY ACCOUNTS
Within 15 (fifteen) working days after fully receiving the valid dossiers, the State Bank shall grant or refuse to grant the licenses for opening overseas foreign currency accounts. In case of refusal to grant such license to any organization or individual, the State Bank shall have to reply in writing, clearly stating the reasons therefor.
Part Three
CURRENT TRANSACTIONS
Chapter I
TRANSFERRING FOREIGN CURRENCY(IES) BACK TO VIETNAM FROM SOURCES OF CURRENT TRANSACTIONS
SECTION I.- WITH REGARD TO SOURCES OF FOREIGN CURRENCY COLLECTION VIA BANK ACCOUNTS
1. Residents being organizations that have foreign currency revenues from the export of goods and services or from other current transactions overseas shall have to transfer back home such foreign currency amounts into their foreign currency deposit accounts opened at licensed banks operating in Vietnam. (The money transfer by telegraph, mail and other forms shall comply with international practices. The money transfer for payment by letter of credit (L/C) shall comply with the time-limit stated in the contracts).
2. Residents being organizations licensed by the State Bank to open and use overseas foreign currency accounts, when having sources of foreign currency revenue overseas, may retain part or whole of the collected amounts of foreign currency(ies) and deposit them into their overseas foreign currency accounts for use for the purposes defined in the licenses granted by the State Bank. The remaining foreign currency amount shall be transferred back to the country.
SECTION II.- WITH REGARD TO THE COLLECTION OF FOREIGN CURRENCY(IES) IN CASH
1. Residents being organizations licensed by the State Bank to sell goods and provide services for collecting foreign currency(ies) in cash such as duty-free shops, units providing services for non-residents in isolation areas at international bordergates, bonded warehouses, collecting taxes and charges in foreign currency(ies) shall have to remit the collected foreign currency amount in cash into their foreign currency deposit accounts at licensed banks within 7 (seven) working days after the collection of foreign currency in cash ( except for the foreign currency amount left for daily-use fund, which is agreed upon by the head of the unit and the bank that manages the account).
2. Residents being organizations which have foreign currency revenues in cash in foreign countries from the export of goods, the provisions of services, the organization of trade fairs, exhibitions... shall have to deposit the collected foreign currency amounts into their foreign currency deposit accounts at licensed banks within 7 (seven) working days after such foreign currency amounts are brought back to the country with certification by the bordergate customs.
Chapter II
ORGANIZATION-RESIDENTS� OBLIGATION TO SELL FOREIGN CURRENCY(IES)
1. Residents being Vietnamese economic organizations, foreign-invested enterprises and foreign parties to business cooperation contracts which are guaranteed by the Vietnamese Government’s support for the balance of their foreign currency demand, branches of foreign companies, foreign contractors, contractors in partnership with foreign parties, State bodies, armed forces units, political organizations, socio-poitical organizations, social organizations, socio-professional organizations, social funds and charity funds of Vietnam shall have to sell the foreign currency amounts they have collected from current revenue sources to the licensed banks at the rate prescribed by the Prime Minister for each period.
2. The rate and time-limit for fulfilling the obligation to sell foreign currency(ies) collected from current revenue sources by organization-residents shall comply with the Prime Minister�s decision in each period and with guiding documents of the State Bank.
3. Foreign-invested enterprises and foreign parties to business cooperation contracts, which have not been guaranteed with the Vietnamese government’s support for the balance of their foreign currency demand, shall not have to sell the foreign currency amounts they have collected from current revenue sources and shall have to ensure by themselves the balance of their foreign currency demand for their own business operations
Chapter III
ORGANIZATIONS’ RIGHT TO BUY FOREIGN CURRENCY(IES)
SECTION I.- FOR ORGANIZATION- RESIDENTS
1. Residents being Vietnamese economic organizations, branches of foreign companies, foreign contractors, foreign parties to business cooperation contracts, contractors in partnership with foreign parties, credit institutions in Vietnam, State bodies, armed forces units, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and charity funds of Vietnam may buy foreign currency(ies) at licensed banks to satisfy the requirements of payment for current transactions or for other permitted transactions on the basis that they produce relevant valid papers.
2. Residents being foreign-invested enterprises and foreign parties to business cooperation contracts may buy foreign currency(ies) at licensed banks to satisfy their requirements of payment for current transactions or for other permitted transactions according to the provisions of legislation on the management of foreign exchange in the field of foreign investment in Vietnam.
3. The right to buy foreign currency(ies) of residents being organizations defined at Points 1 and 2 above shall comply with the Prime Minister’�s separate stipulations as well as guiding documents of the State Bank.
SECTION II.- FOR NON-RESIDENTS BEING ORGANIZATIONS
Non-residents being foreign diplomatic missions, consulates, representations of international organizations, representations of inter-governmental organizations, representations of non-governmental organizations, armed forces and political organizations, socio-political organizations, social organizations, socio-professional organizations, representative offices of foreign economic organizations and representative offices of foreign credit institutions operating in Vietnam with sources of revenue in Vietnam dong from the visa granting, the collection of charges or from the sale of foreign currency(ies) to credit institutions and sources of revenue in Vietnam dong permitted by Vietnamese laws may buy foreign currency(ies) at licensed banks. When buying and transferring foreign currency(ies) abroad, the non-residents being organizations shall have to send to the licensed banks the following papers:
1. The application for the purchase of foreign currency(ies) clearly stating the purpose and demand of purchasing the foreign currency(ies);
2. Relevant papers evidencing that the Vietnam dong revenues have been collected from sources permitted by Vietnamese law;
3. In case of termination of operation or dissolution and return home ahead of time, when foreign currency(ies) is (are) purchased, there must be documents of the competent tax authority certifying the fulfillment of the financial obligations towards the Vietnamese State;
After the non-residents being organizations have fully produced to the licensed banks the above-mentioned necessary papers, the licensed banks shall have to examine the validity of such papers and effect the sale of foreign currency(ies) to the non-residents and transfer the foreign currency(ies) abroad according to current procedures.
Chapter IV
BUYING AND TRANSFERRING ABROAD FOREIGN CURRENCY(IES) OF INDIVIDUALS
SECTION I.- FOR RESIDENTS BEING VIETNAMESE CITIZENS
1. Vietnamese citizens who have foreign currency(ies) may transfer or carry them abroad for use for the purposes of tourism, study, visits, medical treatment, payment of membership and other fees to foreign countries, or support or bequeathal to families or relatives overseas according to the following regulations:
a/ With regard to the transfer of foreign currency(ies) abroad to pay for tourism, study, business trips, visits, medical treatments undertaken by themselves, their families or relatives or membership as well as other fees to foreign countries:
In cases where the transfer is made from the foreign currency balance on the foreign currency deposit accounts opened at licensed banks, concerned Vietnamese citizens shall have to address the dossiers to the licensed banks (the banks that effect the money transfer) for consideration of the transfer of foreign currency(ies) abroad.
In cases where the transfer is made from other sources of foreign currency(ies), the concerned Vietnamese citizens shall have to send the dossiers to the State Bank (the Foreign Exchange Management Department) for consideration and approval.
The dossier sent to the licensed bank (the bank that transfers the money) or to the State Bank (the Foreign Exchange Management Department) according to cases mentioned above shall include:
- The application for the transfer of foreign currency(ies) abroad;
- The valid papers evidencing the actual demand for spending foreign currency(ies) overseas such as school fee notices, certification of hospital fees by hospitals, notices on collection of foreign charges, fees and other charges;
- The notarized copy of the decision on overseas trips for business or study (for persons sent abroad for business and/or study) or other relevant papers issued by competent body permitting the exit.
The licensed banks (the banks that transfer the money) shall examine the validity of the papers used for the above-mentioned purposes and effect the transfer of foreign currency(ies) abroad according to the addresses requested by the money transferrers. For cases approved by the State Bank (the Foreign Exchange Management Department) there must be the permit of the State Bank. On the basis of the State Bank�s permits, the licensed banks shall effect the transfer of foreign currency(ies) for the requester.
The transfer of foreign currency(ies) abroad to families and relatives mentioned in this Circular means the transfer of foreign currency(ies) to persons of blood ties: fathers, mothers, wives, husbands, offsprings, siblings.
b/ Transfer of foreign currency(ies) abroad for the purpose of supporting or bequeathing to families and relatives overseas;
Vietnamese citizens wishing to transfer foreign currency(ies) abroad to support or bequeath to their families and relatives overseas must obtain the written approval by the State Bank.
When their demand to transfer foreign currency(ies) abroad for the above-mentioned purposes arises, Vietnamese citizens shall have to send the dossiers to the State Bank (the Foreign Exchange Management Department). Such a dossier includes papers defined at Point 1.(a) above in addition to the local administration�s certification of the family relationship or documents of competent bodies on the division of inherited estates.
The foreign currency amount permitted to be transferred abroad annually to support families and relatives shall not exceed 5,000 (five thousand) USD or the equivalent value for other foreign currencies.
The foreign currency amount permitted to be transferred abroad annually for the purpose of bequeathal shall not exceed 10,000 (ten thousand) USD or the equivalent value for other foreign currencies.
The remaining foreign currency amount (if any) shall be deposited at licensed banks and transferred abroad gradually with the annual amount not exceeding the levels prescribed above.
The amounts of foreign currency(ies) to be transferred abroad according the above prescribed levels may be transferred in a lumpsum or many installments as requested by the money transferrers.
The licensed banks shall effect the transfer of foreign currency(ies) abroad for the purposes of supporting or bequeathing to families or relatives overseas only after the written approval by the State Bank is obtained.
c/ Vietnamese citizens who have the demand to carry foreign currency (ies) in cash abroad (with the amount exceeding the level that requires the bordergate customs declaration) for use for the purposes prescribed at Points 1.(a) and 1.(b) above shall be granted by the banks the permit to carry foreign currency(ies) in cash abroad according to the following regulations:
- The foreign currency(ies) in cash to be brought overseas are those withdrawn from personal foreign currency deposit accounts at licensed banks: There must be the permit to bring foreign currency(ies) in cash abroad granted by the licensed banks that permit the withdrawal of foreign currency(ies) in cash.
- The foreign currency(ies) in to be brought overseas cash are not those withdrawn from personal foreign currency deposit accounts: There must be the permit to bring foreign currency(ies) in cash abroad, granted by the State Bank (the Foreign Exchange Management Department).
2. Vietnamese citizens who need foreign currency(ies) for transfer and carrying abroad for the purposes prescribed at Point 1 above may contact licensed banks to buy foreign currency(ies) after sending to the banks their application for the purchase of foreign currency(ies) and relevant papers (the dossier of application for the purchase of foreign currency(ies) also include such papers as the application for transfer of foreign currency(ies) abroad defined at Points 1.(a) and 1.(b) above).
3. The time-limit for the bank to effect the transfer of money abroad or to grant the permit to carry foreign currency(ies) in cash abroad to Vietnamese citizens who have so demanded shall be 5 (five) working days at most after the banks fully receive the valid papers related to the purchase, transfer and carrying of foreign currencies. In case of refusal, the banks shall have to notify the applicants of the reasons therefor.
4. The banks entitled to grant permits for carrying foreign currency(ies) in cash abroad shall have to notify their seals and the signatures of their general directors (directors) (or persons authorized to sign the permits) to the General Department of Customs and the bordergate customs for supervision, management and monitoring.
SECTION II.- FOR NON-RESIDENTS AND RESIDENTS BEING FOREIGNERS
1. Non-residents being individuals who have foreign currency(ies) in their foreign currency deposit accounts at banks may transfer or carry foreign currency(ies) abroad according to the following regulations:
a/ Via-bank transfer: shall comply with the money transfer procedures set by the banks that transfer the money.
b/ Carrying along foreign currency(ies) in cash when on exit: The non-residents are permitted to withdraw foreign currency(ies) in cash from their foreign currency deposit accounts to carry along when on exit. If the amount of foreign currency(ies) in cash carried along exceeds the limit that requires the bordergate customs declaration, there must be the permit to carry foreign currency(ies) abroad, granted by the banks that permit to withdraw the foreign currency(ies) in cash.
c/ Upon the expiry of their working terms in Vietnam or the termination of their labor contracts signed with Vietnamese parties, the non-resident foreigners who have the demand to transfer abroad their entire revenue in foreign currency(ies) they have earned during their stay in Vietnam shall, when filling the procedures for money transfer, have to produce to the money-transferring banks the documents of the competent tax authorities certifying that they have fulfilled their financial obligations in Vietnam.
d/ When having the demand to carry abroad foreign currency(ies) in cash from other revenue sources permitted by Vietnamese law (not those withdrawn from foreign currency deposit accounts opened at banks) with the amount of foreign currency(ies) in cash exceeding the level that requires the bordergate customs declaration, there must be the written approval of the State Bank (the Foreign Exchange Management Department).
2. Non-residents being individuals who have revenue in Vietnam dong from salaries, wages, bonuses, allowances or other sources of revenue in Vietnam dong permitted by Vietnamese law may use such Vietnam dong amount to buy foreign currency(ies) at licensed banks and transfer such foreign currency (ies) abroad when they have such demand.
Upon the expiry of their working terms in Vietnam or termination of their labor contracts signed with Vietnamese parties, the non-residents who have the demand to transfer the entire amount of their purchased foreign currency(ies) abroad shall have to produce to the money-transferring banks the documents of the competent tax authorities certifying that they have fulfilled their financial obligations in Vietnam.
The foreign currency(ies) to be transferred abroad may be purchased via bank account transfer or in cash. Where the foreign currency(ies) in cash is purchased with an amount larger than the level that requires the bordergate customs declaration, there must be the permit to carry foreign currency(ies) abroad, granted by the banks that sell the foreign currency(ies).
3. The residents being foreigners working in organizations in Vietnam who have foreign currency(ies) in their foreign currency deposit accounts opened at banks may transfer the foreign currency(ies) abroad in forms of via-bank account transfer or withdrawal of foreign currency(ies) in cash for carrying along when on exit.
a/ The residents being foreigners who finish their working terms in Vietnam or terminate the labor contracts signed with Vietnamese parties and have the demand to transfer their entire foreign currency revenues earned during their stays in Vietnam shall have to produce to the bank which transfer the money the documents of the competent tax authorities certifying that they have fulfilled the financial obligations in Vietnam.
The money-transferring banks shall examine the validity of the above papers and fill in the procedures for transferring foreign currency(ies) abroad to the addresses requested by the money transferrers.
b/ The residents being foreigners who have foreign currency deposit accounts at banks may withdraw the foreign currency(ies) in cash to carry them along when on exit if they have such demand. If the foreign currency amount exceeds the level that requires the bordergate customs declaration there must be the permit to carry the foreign currency(ies) abroad, granted by the banks that permit the withdrawal of foreign currency(ies) in cash.
In cases where the foreign currency(ies) in cash carried abroad have originated from other sources of revenue permitted by Vietnamese law (not those withdrawn from the foreign currency deposit accounts at banks) with the amount larger than the level that requires the bordergate customs declaration, there must be the written approval of the State Bank (the Foreign Exchange Management Department).
c/ The residents being foreigners who receive salaries, wages, bonuses, allowances and other lawful incomes in Vietnam dong, when having the demand to convert such money into foreign currency(ies) may buy foreign currency(ies) at licensed banks for transfer abroad.
The licensed bank shall sell foreign currency(ies) and fill in the procedures for the transfer or carrying of the foreign currency(ies) abroad according to the regulations at Points 3.(a) and 3.(b) above.
4. The banks which grant permits to carry foreign currency(ies) in cash abroad to non-residents or residents being foreigners who withdraw foreign currency(ies) in cash from their foreign currency deposit accounts opened at the banks shall have to notify their seals and the signatures of their general directors (directors) (or persons authorized to sign the permits) to the General Department of Customs and the bordergate customs for supervision, management and monitoring.
Chapter V
CARRYING ALONG FOREIGN CURRENCY(IES) IN CASH, VIETNAM DONG IN CASH AND GOLD OF INTERNATIONAL STANDARD WHEN ON EXIT OR ENTRY
1. Basing him/herself on the practical situation in each period, the State Bank Governor prescribes the levels of foreign currency(ies) in cash, Vietnam dong in cash and gold of international standard, which individuals may carry out of or into the country when on exit or entry without having to declare to the bordergate customs, and guides the implementation of the regulations on carrying along foreign currency(ies) in cash, Vietnam dong in cash and gold of international standard when leaving and entering the country.
2. Individuals, when entering Vietnam and carrying foreign currency(ies) in cash, Vietnam dong in cash and/or gold of international standard with the amount exceeding the levels set by the State Bank Governor shall have to fill in the procedures for bordergate customs declaration. For individuals being residents who wish to deposit the foreign currency(ies) in cash into their foreign currency deposit accounts at licensed banks they must get the bordergate customs�s certification of the foreign currency amount brought from overseas into the country. Individuals being non-residents may deposit the foreign currency(ies) in cash into their foreign currency deposit accounts with the amount below the customs declaration level; in cases where such amount is larger than the customs declaration level, there must be the bordergate customs�s certification of the foreign currency amounts brought from abroad into the country or papers evidencing their lawful sources of income in Vietnam.
3. Individuals who leave the country and carry along foreign currency(ies) in cash, Vietnam dong in cash and/or international standard gold with the amount exceeding the customs declaration levels or exceeding the amounts they have brought in and declared with the customs when entering the country shall have to obtain the State Bank�s permits.
4. Individuals who carry along foreign currency(ies) in cash, Vietnam Dong in cash and/or international standard gold upon their exit and/or entry in each period shall have to comply with the separate regulations of the State Bank Governor.
5. Individuals, when leaving and/or entering Vietnam, carry along different types of payment instruments and other papers of value in foreign currency(ies) or Vietnam dong, which are not cash, shall not have to fill in the bordergate customs declaration procedures.
Part Four
CAPITAL TRANSACTIONS
Chapter I
TRANSFERRING FOREIGN CURRENCY REVENUES FROM CAPITAL TRANSACTIONS BACK TO VIETNAM
Organization-residents that have foreign currency revenues from capital transactions abroad such as contributed capital (legal capital, capital contributed to business cooperation contracts and other forms of overseas direct investment), foreign borrowed capital, retrieval of foreign loans (including the form of issuance of international bonds) shall have to transfer all back to Vietnam and deposit into their foreign currency accounts opened at licensed banks according to the tempo and time limit already approved by competent bodies.
Organization-residents that have foreign currency revenues from capital transactions abroad but have the demand to leave them in foreign countries and do not transfer them back home yet according to the above-mentioned regulations (including the partial remittance or non-remittance according to time-table) shall have to obtain the written approval from the State Bank.
The sale of foreign currency(ies) earned from capital transactions to licensed banks may be effected on the basis of mutual agreement. Foreign currency(ies) collected from capital transactions and deposited in the foreign currency deposit accounts may be used for the purposes prescribed in Section I, Chapter I, Part Two of this Circular.
Chapter II
MANAGEMENT OF BORROWINGS AND DEBT REPAYMENT, LOANS AND RETRIEVAL OF FOREIGN LOANS
The management of foreign borrowings and payment of foreign debts and retrieval of foreign loans shall comply with separate provisions of law.
The transfer of money to effect the foreign borrowings and payment of foreign debts, foreign loans and retrieval of foreign debts of Vietnamese economic organizations, foreign-invested enterprises and credit institutions in Vietnam must be effected through licensed banks and only after it is registered with the State Bank.
Chapter III
DIRECT INVESTMENT
SECTION I.- DIRECT INVESTMENT IN VIETNAM
1. Foreign investors are encouraged to transfer their investment capital in foreign exchange from abroad into Vietnam according to the provisions of the Law on Foreign Investment in Vietnam.
2. Foreign investors shall have to transfer their capital into their accounts opened at licensed banks operating in Vietnam according to the time-table prescribed in the joint-venture contracts, the business cooperation contracts or enterprises’ charters already approved by competent bodies and may use capital for the right purposes prescribed in the investment licenses already granted by competent bodies of Vietnam.
3. During the course of operation, the foreign-invested enterprises and the foreign parties to business cooperation contracts shall have to report once every six months on January 15 and July 15 at the latest every year to the State Bank (the Foreign Exchange Management Department and the State Bank’s provincial/municipal branches in the localities on the situation of implementation of investment capital (in property and/or in cash) and reinvestment capital, profit transfer back to the country.
4. Foreign investors may transfer their profits and divided turnovers (for business cooperation contracts based on division of turnover) and other lawful revenues abroad after fulfilling their financial obligations towards the Vietnamese State.
a/ When effecting the transfer of profits, divided turnover and other lawful revenues abroad, the foreign investors shall have to produce to the eligible banks the following papers:
- The notarized copy of the financial report with certification by the Audit;
- The report of the Management Board (or the project-managing board with regard to the business cooperation contracts) on the division of profits (or division of turnover);
- The document of the competent tax authority certifying the fulfillment of the financial obligations towards the Vietnamese State;
b/ When transferring the legal capital, reinvestment capital, capital for implementation of business cooperation contracts abroad, the foreign investors shall have to produce to the licensed banks the following papers:
- The notarized copy of the report on the liquidation of the enterprise or the business cooperation contract, which is approved by the investment-licensing body;
- The document of the competent tax authority certifying the fulfillment of the financial obligations towards the Vietnamese State.
Where the amount of money transferred abroad is larger than the legal capital, the capital for the implementation of a business cooperation contract and/or the reinvestment capital, the increased amount of money shall be transferred abroad only when there is the certification by the investment-licensing body.
c/ Foreign-invested enterprises and foreign parties to business cooperation contracts may transfer foreign currency(ies) abroad for repayment of foreign debts, including both the principals, interests and assorted charges according to the borrowing contract signed with the foreign lending party. The transfer of foreign currency(ies) for debt payment shall have to comply with the provisions of legislation on foreign borrowings and payment of foreign debts.
The purchase of foreign currency(ies) for the transfer of profits, divided turnover, investment capital and reinvestment capital of investors in foreign countries shall comply with the provisions in Section I, Chapter III, Part Three of this Circular.
SECTION II.- DIRECT INVESTMENT INTO FOREIGN COUNTRIES
1. Residents being enterprises which have been established and operating under the Vietnamese law may make overseas direct investment (hereafter referred to as the Vietnamese investor) and transfer foreign currency(ies) in their foreign currency deposit accounts abroad for investment according to Vietnamese legislation on overseas direct investment.
The Vietnamese investor shall have to open a foreign currency deposit account at a licensed bank in Vietnam and register the account number as well as the bank where the account is opened with the State Bank’s provincial/municipal branch in the locality (where the Vietnamese investor having overseas investment capital is headquartered) and through this account the money is transferred overseas for investment capital contribution or the investment capital, reinvestment capital, profits, divided turnover and other lawful revenues abroad are transferred back to the country.
2. The Vietnamese investor shall have to register the money transfer with the State Bank’s provincial/municipal branch in the locality and effect the investment capital transfer (in cash and property) abroad according to the capital contribution timetable stated in the charter or the joint-venture contract or the business cooperation contract already approved by the competent agency of the investment-receiving country.
The Vietnamese investor may transfer abroad the foreign currency(ies) earned from the export of goods and services for investment capital contribution; where Vietnam dong is converted into foreign currency(ies) for overseas investment capital contribution, it must be permitted by the State Bank.
3. Annually, the Vietnamese investor abroad shall have to transfer back to the country the profits and other lawful revenues within six months after the end of the fiscal year of the investment-receiving country.
Upon the completion of a project, the early dissolution or non-implementation of the project, the Vietnamese investor shall have to transfer back to the country the investment capital, the reinvestment capital and the post-liquidation earnings within six months after the completion of the liquidation.
Upon the end of the fiscal year or the completion or termination of the overseas investment, the Vietnamese investor shall have to report to the State Bank on the situation of transfer of capital, profits and other lawful revenues back to Vietnam.
4. Where the Vietnamese investor uses the profits for reinvestment or prolong the overseas investment duration, he/she shall have to register with the State Bank�s provincial/municipal branch (in the locality where the Vietnamese investor has opened the account) the use of dividends for reinvestment or the prolongation of the investment duration.
Chapter IV
INVESTMENT IN VALUABLE PAPERS
SECTION I.- INVESTMENT IN VALUABLE PAPERS, WHICH ARE ISSUED IN VIETNAM
The non-residents may invest in papers of foreign currency value which are permitted to be issued in Vietnam. The conditions and procedures for investment in valuable papers shall comply with the provisions of the legislation on securities and other relevant provisions of law.
SECTION II.- INVESTMENT IN VALUABLE PAPERS, WHICH ARE ISSUED ABROAD BY NON-RESIDENTS
When approved by the State Bank, the resident may invest in papers of foreign currency value, issued abroad by non-residents.
Chapter V
MANAGEMENT OF FOREIGN EXCHANGE IN CASE OF PERMANENT RESIDENCE
SECTION I.- FOR RESIDENTS BEING VIETNAMESE CITIZENS RESIDING OVERSEAS
1. Vietnamese citizens who have foreign currency(ies) transferred from abroad via banks into the country or carried along when entering Vietnam with the bordergate customs’s certification and have other lawful sources of foreign currency revenue in Vietnam being deposited in personal foreign currency deposit accounts or foreign currency savings accounts at banks or kept by themselves, when allowed to leave the country for residing abroad, may carry along such amount of foreign currency(ies) in service of their life in foreign countries. The transfer or carrying of such foreign currency amount abroad shall comply with the following regulations:
a/ Transfer of foreign currency(ies) abroad via banks
When transferring foreign currency(ies) abroad, Vietnamese citizens shall have to send to licensed banks (which effect the transfer of foreign currency(ies)) the following valid papers:
- The application for transfer of foreign currency(ies);
- The notarized copy of the competent agency�s decision permitting the departure for living permanently overseas;
- The passport with entry visas (for countries where entry and exit visas are required);
- The notoraized copies of papers proving that the foreign currency(ies) have been transferred from abroad or lawfully earned in Vietnam such as the customs declaration with the border-gate customs�s certification of the foreign currency amount carried into the country upon their entry, the notice on the foreign currency(ies) transferred from abroad, and other papers certifying that the foreign currency(ies) have been earned from lawful sources prescribed by Vietnamese law.
The banks shall have to examine the validity of the above-mentioned papers in order to effect the transfer of foreign currency(ies) abroad via the banks for Vietnamese citizens who are allowed to leave the country for permanent residence abroad according to the current regulations on foreign currency transfer.
b/ Carrying foreign currency(ies) in cash abroad:
Vietnamese citizens who are allowed to leave the country for residence overseas and carry foreign currency(ies) in cash with an amount below the border-gate customs declaration level shall not need the permit to carry foreign currency(ies) in cash abroad issued by banks.
Vietnamese citizens who are allowed to leave the country for residence overseas and wish to carry foreign currency(ies) in cash with an amount larger than the border-gate custom declaration level shall apply for the permit to carry foreign currency(ies) in cash according to the following regulations:
- For the foreign currency(ies) in cash withdrawn from personal foreign currency deposit accounts opened at banks, there must be the permit to carry foreign currency(ies) in cash abroad, issued by the licensed banks that permit the withdrawal of foreign currency(ies) in cash:
Vietnamese citizens shall have to send to the licensed banks where the foreign currency(ies) are withdrawn the following papers:
+ The application for the permit to carry foreign currency(ies) abroad;
+ The notarized copy of the competent body’s decision permitting the departure for overseas residence;
+ The passport with entry visa(s) (for countries where exit and entry visas are required);
The banks shall have to examine the validity of the above-mentioned papers and grant the permits to carry foreign currency(ies) in cash abroad to Vietnamese citizens who are allowed to leave the country for residence overseas.
- For currency(ies) transferred from abroad or earned lawfully in Vietnam, which is (are) deposited in savings accounts or kept by oneself, there must be the permit to carry foreign currency(ies) in cash abroad, issued by the State Bank (the Foreign Exchange Management Department):
The Vietnamese citizens shall have to send to the State Bank (the Foreign Exchange Management Department) the following papers:
+ The application for the permit to carry foreign currency(ies) abroad;
+ The notarized copy of the competent body�s decision permitting the departure for overseas residence;
+ The passport with entry visa(s) (for countries where the exit and entry visas are required);
+ The notarized copies of papers evidencing that the foreign currency(ies) has (have) been transferred from abroad or earned lawfully in Vietnam, such as the customs declaration with the border-gate customs�s certification of the foreign currency amount brought in upon the entry, the notice on the arrival of foreign currency(ies) from abroad and other papers certifying the sources of foreign currency(ies) permitted by Vietnamese law.
The State Bank (The Foreign Exchange Management Department) shall consider and grant the permit to carry foreign currency(ies) in cash to Vietnamese citizens who are allowed to leave the country for overseas residence.
2. Vietnamese citizens who are allowed to leave the country for overseas residence and have Vietnam dong shall be considered by the State Bank (The Foreign Exchange Management Department) for the purchase of foreign currency(ies) at licensed banks for transfer or carrying abroad with the maximum amount of no more than 15,000 (fifteen thousand) USD or equivalent in other foreign currency(ies).
Vietnamese citizens who are allowed to leave the country for overseas residence and have the demand to buy foreign currency(ies) shall have to send the dossiers of application for the purchase of foreign currency(ies) to the State Bank (The Foreign Exchange Management Department).
Such a dossier shall include the following papers:
- The application for purchase or transfer of foreign currency(ies);
- The notarized copy of the competent body�s decision permitting the departure for overseas residence;
- The passport with entry visa(s) (for countries where the exit and entry visas are required);
On the basis of the State Bank�s written approval of the foreign currency purchase, the licensed banks shall base themselves on their foreign currency capability to effect the sale and transfer abroad the foreign currency(ies) at the request of the foreign currency buyers. Where foreign currency(ies) is (are) sold in cash, the buyers shall be granted to permits to carry foreign currency(ies) in cash abroad (except where the amount of foreign currency(ies) in cash carried abroad is below the border-gate customs declaration level).
Vietnamese citizens may deposit the remaining amount of Vietnam dong left after buying foreign currency(ies) for transfer abroad with the above-prescribed amounts in banks in the form of savings and are entitled to use such Vietnam dong to annually buy not more than 10,000 (ten thousand) USD or equivalent in other foreign currency(ies) for gradual transfer abroad. For each time of application for the purchase and transfer of foreign currency(ies) abroad, there must be the written approval by the State Bank (the Foreign Exchange Management Department).
3. The residents who are allowed to leave the country for overseas residence may carry along the amount of international standard gold they have lawfully owned (brought from abroad with the border-gate customs�s certification, bought at credit institutions or gold and silver companies, or inherited by law). When on exit, they shall have to declare them and produce to the border-gate customs all valid papers related to the origin of the international standard gold amount.
4. The time-limit for the bank to transfer the foreign currency(ies) abroad or grant the permit to carry foreign currency(ies) in cash abroad shall be no more than 5 (five) working days, as prescribed, after fully receiving the valid papers related to the purchase and transfer of foreign currency(ies) according to the above regulations. In case of refusal, the bank shall have to notify the reasons therefor to persons who requested the purchase and transfer of the foreign currency(ies).
The banks which grant permits to carry foreign currency(ies) in cash abroad shall have to notify their seals and the signatures of their general directors (directors) (or persons authorized to sign the permits) to the General Department of Customs and the border-gate customs for supervision, management and monitoring.
5. The residents being Vietnamese citizens who are allowed to leave the country for overseas residence and have the demand to purchase and transfer foreign currency(ies) with the amounts exceeding the above-prescribed levels must obtain the written approval by the State Bank Governor.
SECTION II.- FOR NON-RESIDENTS BEING FOREIGNERS WHO PERMANENTLY RESIDE IN VIETNAM
The non-residents being foreigners who are permitted to enter Vietnam for permanent residence may carry or transfer into Vietnam foreign currency(ies) and international standard gold; where the amount carried into the country is higher than the prescribed level, the border-gate customs declaration procedures must be filled in.
Foreign currency(ies) carried along and declared to the border-gate customs or transferred through banks and international standard gold brought into Vietnam may be used according to the regulations of this Circular and other relevant regulations on foreign exchange management.
Part Five
FOREIGN EXCHANGE TRANSACTIONS BY CREDIT INSTITUTIONS AND FOREIGN EXCHANGE DESKS
Chapter I
LICENSING THE FOREIGN EXCHANGE TRANSACTIONS
SECTION I.- COMPETENCE TO GRANT FOREIGN EXCHANGE TRANSACTION LICENSES
The State Bank Governor is competent to grant, amend, renew and withdraw the foreign exchange transaction licenses of credit institutions.
Directors of the State Bank’s provincial/municipal branches are competent to grant, amend, extend and withdraw the licenses to act as foreign exchange desk agents for credit institutions licensed to carry out foreign exchange transactions.
SECTION II.- THE TIME FOR CONSIDERING THE LICENSE GRANTING
The time for considering the granting of foreign exchange transaction license shall be 15 (fifteen) working days for credit institutions and 7 (seven) working days for foreign exchange desks, after fully receiving the valid dossiers of application for the license.
Within such time-limits, the State Bank or its authorized branches shall grant or refuse to grant the licenses. In case of refusal, the bank shall have explain in writing the reasons therefor.
SECTION III.- AMENDING AND EXTENDING LICENSES
The State Bank or its authorized provincial/municipal branches shall consider and effect the amendment or extension of licenses already granted to credit institutions and foreign exchange desks in the following cases:
1. The credit institutions and/or foreign exchange desks apply for the expansion or shrinkage of the scope of their foreign exchange transactions;
2. The credit institutions and foreign exchange desks fail to satisfy the requirements and fail to abide by the regulations of the State Bank on the foreign exchange transaction contents stated in the licenses;
3. The licenses granted to credit institutions and/or foreign exchange desks have expired and the credit institutions and/or foreign exchange desks have applied for the extension thereof.
4. The credit institution is the one that has been divided, split up or merged.
SECTION IV.- WITHDRAWAL OF LICENSES
The State Bank or its authorized provincial/municipal branches shall consider and decide the withdrawal of licenses already granted to credit institutions and/or foreign exchange desks in the following cases:
1. The credit institution or foreign exchange desk is suspended from a number of foreign exchange transactions but deliberately continues to carry out such transactions;
2. The credit institution is placed under the special control by the State Bank;
3. The credit institution has its operation license withdrawn by the State Bank;
4. Serious violations of the regulations on foreign exchange management have been committed.
Chapter II
THE SCOPE OF FOREIGN EXCHANGE TRANSACTIONS
Credit institutions which are branches of foreign banks, joint-venture banks, joint-venture non-bank credit institutions and non-bank credit institutions with 100% foreign capital may carry out foreign exchange transactions within the permitted scope stated in their granted operation licenses.
Credit institutions which are banks and non-bank credit institutions other than those mentioned above may carry out foreign exchange transactions only after they are granted the foreign exchange transaction licenses.
Credit institutions which are rural joint stock commercial banks are not allowed to conduct foreign exchange transactions.
1. For commercial banks
The commercial banks are entitled to perform several or all of the following foreign exchange transactions when they are so permitted by the State Bank:
a/ Buying and selling various kinds of foreign currencies on the domestic market; collecting and exchanging foreign currencies and organizing foreign exchange desks;
b/ Taking foreign currency deposits and savings of customers;
c/ Providing foreign currency loans to domestic and foreign organizations;
d/ Borrowing foreign currency capital from domestic and foreign organizations;
e/ Providing services on treasury payment in foreign currency(ies) such as opening domestic foreign currency accounts for customers, domestic payment in foreign currency(ies); providing services on foreign currency collection and payment in cash to customers;
f/ Receiving entrusted investment capital in foreign currency(ies) from foreign organizations and individuals;
g/ Providing security for domestic and foreign loans in foreign currency(ies);
h/ Issuing by themselves or as agents papers of foreign currency value;
i/ Discounting, rediscounting or pledging commercial papers and papers of foreign currency value;
k/ Trading by themselves or as agents all kinds of securities in foreign currency(ies);
l/ Providing foreign exchange consultation services to customers;
m/ Providing international payment services;
n/ Buying and selling different kinds of foreign currencies on foreign markets;
o/ Trading in gold of international standard on domestic and foreign markets.
2. For non-bank credit institutions
a/ For financial leasing companies.
The financial leasing companies may perform several or all of the following foreign exchange transaction contents when they are so permitted by the State Bank:
- Receiving foreign currency deposits with terms of one year or more;
- Issuing bonds and papers of foreign currency value;
- Borrowing foreign currency capital from domestic and foreign credit institutions;
- Providing financial lease;
- Providing guarantee in foreign currency(ies);
- Performing services on consignment and management of property in foreign currency(ies).
b/ For financial companies
Financial companies may perform several or all of the following foreign exchange transaction contents when so permitted by the State Bank
- Taking foreign currency deposits with term of one year or more;
- Issuing bonds or papers of foreign currency value;
- Borrowing capital in foreign currency(ies) from domestic and foreign credit institutions;
- Providing guarantee in foreign currency(ies);
- Providing services on consignment and management of property in foreign currency(ies);
- Providing short-term, medium-term and long-term loans in foreign currency(ies);
- Discounting, rediscounting or pledging commercial papers and papers of foreign currency value;
- Trading in or acting as agent of trading in various kinds of securities in foreign currency(ies);
- Providing foreign exchange consultation services for customers;
3. For foreign exchange desks
Credit institutions licensed to carry out foreign exchange transactions may organize foreign exchange desks in areas necessary for the foreign currency exchange for customers.
Credit institutions may authorize economic organizations to act as their foreign exchange agents. The foreign exchange desk agency authorization shall comply with the regulations on foreign exchange desks issued by the State Bank.
The foreign exchange desks may only buy foreign currency(ies) from customers but not sell foreign currency(ies) to them.
Particularly the foreign exchange desks at the offices of licensed banks and the separation areas at international border-gates may re-exchange Vietnam dong with foreign currency(ies) for non-residents and residents being foreigners. If the re-exchanging amount is below 500 (five hundred) USD or equivalent in other foreign currency(ies), the subject persons shall not have to produce the foreign currency exchange receipt; if such amount is over 500 (five hundred) USD or equivalent in other foreign currency(ies), the subject persons shall have to produce foreign currency exchange receipt and be entitled to the maximum amount equal to the already changed amount inscribed on the receipt.
Chapter III
CONDITIONS FOR BEING LICENSED TO CONDUCT FOREIGN EXCHANGE TRANSACTIONS
SECTION I.- CONDITIONS
1. For the commercial banks that wish to conduct foreign exchange transactions according to the contents prescribed in from Point 1(a) to Point 1(l), Chapter II, Part Five of this Circular:
a/ Being granted the establishment and operation license by the State Bank;
b/ There is in the area of operation really the demand for foreign exchange transactions.
2. For the commercial banks that have the requirement to conduct foreign exchange transactions according to the contents prescribed at Point 1(m) and 1(n), Chapter II, Part Five of this Circular.
In addition to conditions 1(a) and 1(b) above, the following conditions must also be met:
a/ Having the operation duration of at least 03 years;
b/ Having capital as prescribed below:
- For State-owned commercial banks: It is equal to the legal capital amount prescribed in Decree No.82/1998/ND-CP of October 3, 1998 of the Government;
- For joint stock commercial banks: Having enough minimum charter capital of 70 billion Vietnam dong.
c/ Having the healthy financial situation, having done business with profits for the latest 3 years;
d/ Having a strong administrative, managerial and internal control apparatus, meeting the conditions and criteria prescribed by law;
e/ Having enough equipment and material conditions in order to satisfy the contents of applying for license to conduct foreign exchange transactions.
f/ Having the manager and staff members fully qualified and knowledgeable about fields of foreign exchange business transactions and capable of providing international payment and international credit services;
g/ Not violating the current regulations on foreign exchange management and other regulations of the State.
3. For non-bank credit institutions
a/ Non-bank credit institutions wishing to be licensed for foreign exchange transactions shall have to satisfy the following conditions:
- Being granted the establishment and operation license by the State Bank;
- Really having the demand for foreign exchange transactions.
b/ Particularly for foreign exchange activities on foreign markets, in addition to the above conditions, the financial companies shall also have to meet the following conditions:
- Having the operation duration of at least 3 years;
- Having the minimum charter capital of 50 billion Vietnam dong;
- Their financial situation is healthy; having not violated the regulations on operation safety; having done business with profits for the latest 3 years;
- Having a strong administrative, managerial and internal control apparatus which meets the conditions and criteria prescribed by law;
- Having enough equipment and material conditions to perform the foreign exchange transactions as applied for;
- Having qualified manager and personnel, who are knowledgeable about foreign exchange business transactions;
- Having not violated the current regulations on foreign exchange management and other regulations of the State.
4. Credit institutions wishing to carry out foreign exchange transactions according to the contents related to international-standard gold shall have to meet all conditions prescribed in Section II, Chapter II, Part Six of this Circular.
5. For foreign exchange desks
a/ Having enough equipment and material conditions to perform the exchange of foreign currency(ies) in cash;
b/ Having personnel who are knowledgeable about treasury activities and capable of performing the money changing operations;
c/ Having signed agency contract with a credit institution which is licensed to conduct foreign exchange transactions.
SECTION II.- DOSSIER OF APPLICATION FOR FOREIGN EXCHANGE TRANSACTION LICENSES
1. For commercial banks which have the demand to conduct foreign exchange transactions according to the contents prescribed in Point 1(a) to Point 1(l), Chapter II, Part Five of this Circular.
Commercial banks wishing to conduct foreign exchange transactions shall send their application dossiers to the State Bank (The Department for Banks and Non-Bank Credit Institutions).
Such a dossier shall include:
a/ The application for foreign exchange transactions;
b/ The foreign exchange transactions plan, clearly determining the contents, business mode, business location... The foreign exchange business plan must be feasible and efficient. (This plan must be adopted by the shareholders’ congress, with regard to joint stock credit institutions);
c/ The copies of the establishment and operation license and the business registration certificate;
d/ The comments of the State Bank’s branch in the province or city where the commercial bank is headquartered on the necessity of the application for foreign exchange transactions by the commercial bank.
2. For commercial banks which have the demand to conduct foreign exchange transactions according to the contents prescribed at Points 1(m) and 1(n), Chapter II, Part Five of this Circular.
Commercial banks having the demand to conduct foreign exchange transactions shall have to send the application therefor to the State Bank (the Department for Banks and Non-Bank Credit Institutions).
Such a dossier shall include
a/ The application for foreign exchange activities;
b/ The resolution of the shareholders’ congress approving the application for the performance of foreign exchange transactions (for joint stock credit institutions);
c/ The foreign exchange transactions plan (for joint stock credit institutions, such plan must be approved by the shareholders’ congress);
d/ The report on the latest annual settlement of accounts which has been already audited and the latest asset balance;
e/ The summary of the qualifications, capabilities and skills of the contingent of officials who shall perform the applied foreign exchange transaction contents;
f/ The comments of the State Bank�s branch in the province or city where the credit institution is headquartered on the necessity for the credit institution to carry out the foreign exchange transaction;
g/ Other relevant documents clarifying the above matters at the request of the State Bank.
3. For non-bank credit institutions
a/ Non-bank credit institutions wishing to apply for the foreign exchange transaction license shall have to send their dossiers to the State Bank (the Department for Banks and Non-Bank Credit Institutions).
Such a dossier shall include:
- The application for foreign exchange transactions;
- The foreign exchange transactions plan, clearly determining the contents, business mode, business location... Such plan must be feasible and efficient;
- The copies of the establishment and operation license and the business registration certificate;
- The comments of the State Bank�s branch in the province or city where the credit institution is headquartered on the necessity for the application for the foreign exchange transactions by the credit institution.
b/ Particularly, the non-bank credit institutions which wish to conduct the purchase and sale of foreign currency(ies) on domestic and/or foreign markets shall have to send their dossiers to the State Bank (the Department for Banks and Non-Bank Credit Institutions).
Such a dossier shall include:
- The application for foreign exchange transactions;
- The resolution of the Managing Board or the shareholders� congress approving the application for the performance of foreign exchange transactions (for joint-stock non-bank credit institutions);
- The foreign exchange transactions plan (which must be adopted by the Managing Board or the shareholders’ congress with regard to joint stock non-bank credit institutions);
- The summary of the qualifications and capability of the contingent of officials who shall perform the foreign exchange transactions applied for;
- The comments of the State Bank�s branch in the province or city where the non-bank credit institution is headquartered on the necessity for such credit institution to conduct the foreign exchange transactions;
- Other relevant documents further clarifying the above matters at the request of the State Bank.
4. Credit institutions which wish to perform foreign exchange transactions related to international standard gold shall have to send their dossiers of application for the license to the State Bank according to the regulations in Section II, Chapter II, Part Six of this Circular.
5. For foreign exchange desks
Enterprises wishing to apply for the license to act as foreign exchange agents shall send their dossiers to the State Bank�s provincial/municipal branches in their respective localities.
Such a dossier shall include:
a/ The application for foreign currency exchange agency;
b/ The notarized copy of the establishment decision or the business registration certificate;
c/ The foreign currency exchange agency contract signed with the credit institution.
Chapter IV
PROVIDING FOREIGN CURRENCY LOANS AND RETRIEVING DOMESTIC FOREIGN CURRENCY DEBTS
1. Credit institutions conducting foreign exchange transactions may provide foreign currency loans to residents to pay for the import of supplies, goods, machinery, equipment and services for foreign parties in service of their business activities.
2. Loans in any foreign currency(ies) must be repaid in such foreign currency(ies). Where the debt is repaid in another foreign currency or Vietnam dong, it must be agreed upon between the credit institution and the customer and converted at the exchange rate or according to the principle of determining the exchange rate agreed upon in the credit contract. Foreign-invested enterprises which balance their foreign currency demand by themselves shall not be entitled to repay their debts in Vietnam dong.
Chapter V
ISSUING PAPERS OF FOREIGN CURRENCY VALUE
Credit institutions licensed to conduct foreign currency transactions, which have the demand to mobilize capital and wish to issue or act as agents to issue different kinds of valuable papers such as bank time bonds, treasury bills, shares, bonds, deposit certificates or other papers of foreign currency value, must obtain the written approval of the State Bank Governor.
The issuance of such valuable papers must comply with the current legal documents of the State Bank, the State Securities Commission or ministries and branches authorized by the Government.
Credit institutions which issue securities of different kinds abroad must obtain the written approval of the State Bank Governor.
Banks which join international financial and monetary organizations and wish to act as agents to issue international credit cards of different types must obtain the written approval of the State Bank Governor.
Chapter VI
EXPORT AND IMPORT OF FOREIGN CURRENCY(IES) IN CASH AND PAPERS OF FOREIGN CURRENCY VALUE
1. Export
Licensed banks which have the demand to export foreign currency(ies) in cash to foreign countries must obtain permission from the State Bank.
Licensed banks may export payment vouchers and valuable papers in service of their foreign exchange business activities according to their granted foreign exchange transaction licenses.
2. Import
Licensed banks which have the demand to import foreign currency(ies) in cash must obtain permission from the State Bank.
Licensed banks which import blank checks or bank payment vouchers of various kinds shall not have to ask for permission from the State Bank but shall have to fill in the procedures for border-gate customs declaration on the imported goods.
Chapter VII
MAINTAINING THE FOREIGN EXCHANGE STATUS AND VIETNAM DONG STATUS
Credit institutions licensed to conduct foreign exchange transactions shall have to maintain the foreign exchange status or the Vietnam dong status as provided for by the State Bank. Daily, the credit institutions shall have to report to the State Bank on the foreign exchange status or the Vietnam dong status as well as foreign exchange transactions from abroad into Vietnam and from Vietnam to foreign countries as provided for by the State Bank Governor.
Chapter VIII
LICENSED BANKS� RESPONSIBILITY IN POSTING UP THE FOREIGN CURRENCY BUYING AND SELLING RATES
Daily, the licensed banks shall have to post up the foreign currency buying and selling rates at transaction counters.
When customers have appropriate demand for foreign currency(ies), the licensed banks permitted to carry out foreign exchange transactions shall have to fully and promptly satisfy their demand within the limit of their existing foreign currency sources. Priority should be given first to the meeting of requirement of importing important goods items.
Chapter IX
EXAMINATION OF VOUCHERS
When effecting transactions of foreign currency revenues and/or expenditures on foreign currency deposit accounts of customers as well as foreign currency buying, selling or transferring transactions with customers, licensed banks shall have to check the following papers:
1. Revenues and expenditures on foreign currency deposit accounts of organization- residents:
a/ Revenue:
- Revenues through domestic bank account transfer: Depending on each specific case, the licensed banks may check: the contract on entrusted export and import, decision on internal transfer of capital, and other vouchers related to permitted sources of foreign currency revenue as provided for at Point 2, Section II, Chapter I, Part I of this Circular.
- Depositing foreign currency(ies) in cash into bank accounts: The licenses for goods and services sale with the collection of foreign currency(ies) in cash as payment, the customs declarations certifying foreign currency(ies) in cash brought into the country from abroad, the licenses granted by the State Bank permitting the payment to be made in foreign currency(ies) in cash and other papers related to every concrete revenue source.
b/ Expenditures:
- Payment to foreign parties for the import of goods and services: The import permits (for goods which require the permit), contracts for import of goods and/or services signed with foreign parties, the customs declarations and other relevant papers;
- Payment to domestic organizations and individuals for the purchase of their goods and/or services: The contracts for entrusted export and/or import, decisions on internal capital transfer, contracts and/or receipts on goods/services purchase and other relevant papers depending on each purpose conformable with the provisions at Point 2, Section II, Chapter I, Part One of this Circular.
- Payment of principals, interests and fees in foreign currency(ies) for domestic loans from licensed banks as well as foreign debts: The contracts on capital borrowings and debt acknowledgement papers. There must also be the State Bank�s written certification of the registered loans with regard to foreign loans which must be registered with the State Bank as prescribed.
- Capital contributions for the execution of investment projects under the Law on Foreign Investment in Vietnam: The investment licenses granted by the Ministry of Planning and Investment and the joint-venture contracts or the contracts for business cooperation with foreign parties, already approved by competent bodies;
- Transferring abroad foreign currency profits, investment capital and/or deprecations (if any) according to the provisions of legislation on foreign investment in Vietnam. Depending on every specific purpose of the money transfer, to produce such necessary relevant vouchers as the investment license, the written certification of the fulfillment of financial obligations towards the Vietnamese State, the contract prescribing the mode of dividing the business results, the liquidation reports with the certification by the Ministry of Planning and Investment, the auditing reports as prescribed by law and other relevant papers;
- Transferring foreign currency(ies) abroad for investment according to the provisions of Vietnam�s legislation on overseas investment: To produce the contracts signed with foreign parties and the certification permitting the overseas investment granted by competent agencies, the investment license granted by competent foreign agencies;
- Withdrawing foreign currency(ies) in cash or via bank accounts for officials or employees of the organization when they are sent abroad for official missions or for payment of salaries, wages, rewards and/or allowances for the non-residents or residents who are foreign individuals working for such organization: To produce the labor contracts, certification of wage scales, detailed list of allowances, the decisions on sending people abroad for business mission or study, other relevant papers.
2. Revenues and expenditures on foreign currency deposit accounts of residents being individuals:
a/ Revenues:
- Remitting foreign currency(ies) in cash into bank accounts: The border-gate customs declarations certifying of the amounts of foreign currency(ies) brought into the country from abroad as provided for at Point 2, Chapter V, Part Three or this Circular of papers evidencing the lawful revenues in Vietnam;
- Revenues via bank accounts from donations, gifts and/or inheritance in foreign currency(ies): Papers evidencing the lawful revenues such as gifts, inheritance;
- Revenues via bank accounts and/or in cash in the country from wages, rewards, allowances (for residents being foreigners): The labor contracts, certification of salary/wage scale, decisions on rewards, and other relevant papers.
b/ Expenditures:
- Payment to organizations and individuals in foreign country(ies) for their goods and/or services: Papers evidencing the purchase of goods and/or services and other relevant papers.
- Payment to domestic organizations and individuals that are allowed to collect foreign currency(ies) for the purchase of their goods and/or services: Depending on specific purposes prescribed at Point 2, Section II, Chapter I, Part One of this Circular, to produce proper papers such as the contracts for entrusted import and/or export and other relevant papers.
- Overseas transfer or withdrawal of foreign currency(ies) in cash for carrying abroad: Papers prescribed in Chapter IV, Part Three, Chapter V, Part Four of this Circular.
- Donations, gifts and inheritance under the provisions of law: Papers evidencing the donations, gifts and/or inheritance.
3. Revenues and expenditures on foreign currency deposit accounts of non-residents being organizations operating in Vietnam:
a/ Revenues:
- Depositing cash into accounts: The border-gate customs declarations certifying the amount of foreign currency(ies) brought into the country from abroad or papers evidencing lawful revenues in foreign currency(ies) in Vietnam such as charges and fees, as well as other relevant papers.
- Foreign currency revenues transferred from bank accounts of residents: The list of lawful revenues in Vietnam such as charges, fees, or other papers related to sources of foreign currency revenues.
b/ Expenditures:
- Transferring money abroad: The certification by competent bodies of the fulfillment of financial obligations under the provisions of Vietnamese laws.
- Withdrawing foreign currency(ies) in cash or via bank accounts to pay for overseas trips by individuals working for the organization when they are sent abroad; to pay salary, rewards and allowances to non-residents and residents who are foreigners: The decisions on overseas trips for business missions, the list of salary, reward and allowance payees who work at organizations being non-residents.
4. Revenues and expenditures on foreign currency deposit accounts of non-residents being organizations operating overseas.
a/ Revenues:
Revenues transferred from foreign currency deposit accounts of organizations and individuals in the country: The contracts on goods and/or services export, the customs declarations and other relevant papers.
b/ Expenditures:
Via-bank account transfer abroad: The tax authorities� certification of the fulfillment of the financial obligations towards the Vietnamese State.
5. Revenues and expenditures on foreign currency deposit accounts of non-residents being individuals:
a/ Revenues:
Remitting foreign currency(ies) in cash into bank accounts: The border-gate customs declarations certifying of the amount of foreign currency(ies) brought in from abroad according to the provisions at Point 2, Chapter V, Part Three of this Circular or the labor contracts, the certification of the wage scales, the reward decisions or papers evidencing the lawful sources of revenues.
b/ Expenditures:
Transferring foreign currency(ies) abroad: The competent bodies’ certification of the fulfillment of the financial obligations towards the Vietnamese State as prescribed at Point 1, Section II, Chapter IV, Part Three of this Circular.
6. Revenues and expenditures on Vietnam dong deposit accounts of non-residents being organizations:
a/ Revenues:
- From bank accounts of residents being organizations and individuals: Contracts for purchase/sale of goods and services, invoices, the competent bodies’ documents permitting non-residents to provide goods and services, the list of collected charges and fees of residents, papers evidencing other lawful sources of revenue from residents;
- Payment of Vietnam dong in cash into bank accounts: The list of collected charges and fees, papers evidencing other lawful sources of revenue.
b/ Expenditures
Payment for the conversion into foreign currency(ies) for overseas transfer. The competent tax authority’s certification of the fulfillment of financial obligations towards the Vietnamese State.
7. Revenues and expenditures on Vietnam dong deposit accounts of non- residents being individuals:
a/ Revenue
- Via-bank account collection of Vietnam dong from the provision of goods and services, collection of charges and fees permitted by Vietnamese law: The competent bodies� documents permitting the provision of goods and/or services or collection of charges in Vietnam; goods sale contracts or invoices, charge collection receipts.
- Via-bank account collection of Vietnam dong from the reception of salaries and wages, rewards and allowances: The labor contracts, the managing agencies’ certification of wage scales, rewards and allowances and other relevant papers evidencing the lawful sources of revenue in Vietnam.
- Collection of Vietnam dong in cash from the reception of revenues from other lawful sources: Papers evidencing the lawful sources of revenue in Vietnam.
b/ Expenditures
- Expenditure on purchase of foreign currency(ies): The competent tax authority’s certification of the fulfillment of financial obligations towards the Vietnamese State according to the provisions at Point 2, Section II, Chapter IV, Part Three of this Circular.
Chapter X
INSPECTION, SUPERVISION AND REPORTING
Credit institutions engaged in foreign exchange transactions and foreign exchange desks shall be subject to the inspection and supervision of the State Bank Inspectorate according to the provisions of law. The State Bank Inspectorate may, within its respective functions and tasks, conduct regular or irregular inspection of credit institutions engaged in foreign exchange transactions and foreign exchange desks.
Credit institutions engaged in foreign exchange transactions and the foreign exchange desks shall have to implement and strictly observe the reporting regime of the State Bank.
Part Six
MANAGEMENT OF INTERNATIONAL STANDARD GOLD
Chapter I
TASKS AND POWERS OF THE STATE BANK IN THE MANAGEMENT OF INTERNATIONAL STANDARD GOLD
The State Bank is the body exercising the State management over the activities of dealing in, export and import of international standard gold.
In the management of international standard gold, the State Bank have the following tasks and powers:
1. Elaborating and submitting to competent bodies draft legislation and other projects on the management of international standard gold, issuing according to its competence legal documents on the management of international standard gold;
Other bodies which elaborate and submit to competent agencies legal documents on international standard gold or settle matters related to international standard gold not provided for in this Circular should coordinate with and obtain comments from the State Bank before promulgating and implementing them.
2. Granting and withdrawing international standard gold business licenses within and without the country of credit institutions and gold dealing enterprises;
3. Organizing and managing the domestic international standard gold market;
4. Granting and withdrawing international standard gold export and/or import permits of credit institutions and gold dealing enterprises
5. Controlling the international standard gold business activities of credit institutions and gold dealing enterprises;
6. Examining and inspecting the observance of law provisions on the management of international standard gold;
7. Purchasing and selling international standard gold on domestic and foreign market; exporting and importing international standard gold and effecting other international standard gold transactions according to the provisions of law;
8. Performing other tasks and exercising other powers on the management of international standard gold according to the provisions of law.
The State Bank Governor may authorize directors of its provincial/ municipal branches to perform tasks and exercise powers defined at Points 2, 3, 4, 5, 6, 7 and 8, Chapter I, Part Six of this Circular within their respective localities.
Chapter II
USING INTERNATIONAL STANDARD GOLD
SECTION I.- BY THE STATE BANK
1. To build the State reserve on foreign exchange and make international payment;
2. To effect purchases, sales and other transactions with credit institutions and enterprises licensed to deal in international standard gold;
3. For other purposes when permitted by the Prime Minister.
SECTION II.- BY CREDIT INSTITUTIONS AND ENTERPRISES LICENSED TO DEAL IN INTERNATIONAL STANDARD GOLD
Credit institutions and enterprises licensed to deal in, export and/or import international standard gold may use international standard gold to effect purchases, sales and other transactions with the State Bank, credit institutions and other licensed international gold dealing enterprises in accordance with the State Bank’s regulations and for other purposes when permitted by the Prime Minister.
Credit institutions and enterprises engaged in international standard gold trading, import/export must obtain licenses/permits from the State Bank.
The State Bank shall consider and grant the international standard gold business licenses, export and/or import permits and the licenses for dealing in international standard gold overseas according to the following regulations:
1. The international standard gold business license
a/ Conditions for being granted such license
Credit institutions and enterprises established and operating according to Vietnamese laws and fully meeting the following conditions shall be considered by the State Bank for the granting of international standard gold business licenses:
- Being the organization permitted to deal in gold;
- Having the minimum charter capital of 10 billion Vietnam dong (for organizations with gold trading as their main function); having the minimum gold business turnover of 30 billion Vietnam dong for the preceding year (for organizations with gold trading not as their main function).
- Having operated in the field of gold business for at least 2 years after officially starting its operation;
- Having a healthy financial situation.
b/ Licensing procedures
Credit institutions and enterprises meeting all the conditions mentioned above and wishing to deal in international standard gold shall send their dossiers to the State Bank (the Foreign Exchange Management Department).
Such a dossier shall include:
- The application for international standard gold business license with recommendations by the agency in charge;
- The notarized copy of the establishment decision and the operation charter;
- The notarized copy of the gold business registration certificate;
- The reports on the situation of gold business activities and the financial situation of the unit for the two latest years.
c/ Business scope
Credit institutions and enterprises having the international standard gold business licenses may operate in the following fields:
- Buying lawful international standard gold from all subjects.
- Buying and selling international standard gold with the State Bank, the credit institutions and other licensed international standard gold dealing enterprises.
- Performing other transactions with the State Bank, credit institutions and other licensed international standard gold dealing enterprises.
2. International standard gold export/import permit
a/ General provisions
The international standard gold export and/or import permit shall be considered and granted by the State Bank (the Foreign Exchange Management Department) for each exportation and/or importation by credit institutions and enterprises dealing in gold.
When issuing international standard gold export/import permits to credit institutions and enterprises, the State Bank shall have to notify the permit- granting situation to its branches in relevant provinces and/or cities for coordinated management and supervision of the export, import and use of international standard gold by units.
b/ Conditions for being granted the permits
- Having the international standard gold business license granted by the State Bank;
- Having operated with prestige on the market and with business efficiency in the latest year, strictly abided by the State Bank�s regulations on management of foreign exchange and gold business management.
c/ Permit-granting procedures
Credit institutions and enterprises having fully met the conditions mentioned above shall send their dossiers of application to the State Bank (the Foreign Exchange Management Department)
Such a dossier shall include:
- The application for export and/or import of international standard gold;
- The notarized copy of the international standard gold business license granted by the State Bank;
- The reports on the international standard gold business situation and the financial situation of the economic unit for the latest year (for exporting and importing units, they must regularly report on the gold business situation and the financial situation for the latest quarter);
- The plan for using the volume of international standard gold to be imported (if applying for gold import).
3. Permits for international standard gold trading overseas
Credit institutions and enterprises which have prestige and experience in international standard gold export and/or import activities shall be considered and permitted by the State Bank to deal in international standard gold abroad when they fully meet the following conditions:
a/ Conditions for being granted the permit
- Having the international standard gold business license;
- Having engaged in the international standard gold business for at least 2 years and having done business with profits;
- Having personnel fully qualified for international standard gold dealing overseas;
- Having the plan for international standard gold business overseas.
b/ Licensing procedures
Credit institutions and enterprises wishing to conduct international standard gold business overseas shall send to the State Bank (the Foreign Exchange Management Department) the following papers:
- The application for international standard gold business overseas.
- The notarized copy of the international standard gold business license;
- The report on the business situation in the latest year;
- The plan for international standard gold business overseas.
- Diplomas and certificates evidencing the qualifications of personnel conducting international standard gold business overseas.
SECTION III.- RESIDENTS AND NON-RESIDENTS BEING ORGANIZATIONS AND/OR INDIVIDUALS THAT LAWFULLY OWN INTERNATIONAL STANDARD GOLD MAY KEEP, TRANSPORT, DEPOSIT AT OR SELL TO CREDIT INSTITUTIONS AND/OR ENTERPRISES LICENSED TO CONDUCT INTERNATIONAL STANDARD GOLD BUSINESS
SECTION IV.- TO STRICTLY FORBID THE PURCHASE AND SALE OF INTERNATIONAL STANDARD GOLD ON THE DOMESTIC MARKET OUTSIDE THE SCOPE PRESCRIBED IN CHAPTER II, PART SIX OF THIS CIRCULAR AND FORBID THE USE OF INTERNATIONAL STANDARD GOLD FOR EXCHANGE, PAYMENT FOR THE PURCHASE OF GOODS AND SERVICES ACROSS THE BORDER IN ANY FORM
Chapter III
MANAGEMENT OF GOLD OTHER THAN THE INTERNATIONAL STANDARD GOLD
The management of gold other than the international standard gold shall comply with separate provisions of law.
Part Seven
FOREIGN EXCHANGE RATE FOR VIETNAM DONG
SECTION I.- PRINCIPLE FOR DETERMINING EXCHANGE RATES
The exchange rates of Vietnam dong against other foreign currencies are formulated on the basis of foreign currency supply and demand on the market with the State regulation.
SECTION II.- DETERMINING AND ACCOUNTING THE EXCHANGE RATES
1. Daily, the State Bank announces the average exchange rate on the interbank foreign currency market between Vietnam dong and US dollar on mass media.
Basing itself on the objectives of the monetary policy in each period, the State Bank shall set the fluctuation amplitude against the average exchange rate on the interbank foreign currency market so that the banks may set the buying and selling rates between Vietnam dong and US dollar.
2. The average transaction exchange rate on the interbank foreign currency market between Vietnam dong and the US dollar may apply in the following cases:
a/ It serves as basis for the general directors (directors) of the eligible banks to set and post up the buying and selling rate between Vietnam dong and the US dollar within the amplitude permitted by the State Bank;
b/ The import tax and/or export tax on goods are calculated;
c/ It serves as basis for the State Bank to periodically announce the exchange rates between Vietnam dong and other foreign currencies, applicable to the calculation of export tax and/or import tax;
d/ Bids for national projects are evaluated at the time of bid evaluation;
e/ It serves as basis for the State Bank and the Ministry of Finance to unifiedly set the exchange rates in other cases.
3. The licensed banks shall have to post up the exchange rate and effect the transaction between Vietnam dong and the US dollar within the fluctuation amplitude permitted by the State Bank.
The payment, purchase and sale of foreign currency(ies) between licensed banks and individuals must be effected at the exchange rate posted up by the licensed banks at the time the transaction is effected.
The payment, purchase and sale of foreign currency(ies) between licensed banks and organizations shall be effected according to the buying and selling exchange rates mutually agreed upon.
Part Eight
INFORMATION AND REPORTING
SECTION I.- ORGANIZATIONS AND INDIVIDUALS� RESPONSIBILITY TO PROVIDE INFORMATION
1. The residents in Vietnam or foreign countries and the non-residents in Vietnam that have conducted activities related to foreign exchange shall have to supply information and date to the State bank or credit institutions according to the regulations of this Circular.
2. In addition to the periodic provision of information, in case of necessity the residents being organizations or individuals shall have to supply information on foreign exchange to the State Bank or competent bodies according to the provisions of law.
3. The information sent to the State Bank or credit institutions by organizations and individuals must be adequate, transparent and truthful as prescribed for each type of report. The heads of reporting units shall have to take responsibility before law for the information in their reports.
SECTION II.- THE RIGHTS AND RESPONSIBILITIES OF THE STATE BANK
1. In case of necessity, the State Bank may request residents in Vietnam or in foreign countries and non-residents in Vietnam to provide necessary information and data related to foreign exchange and foreign exchange transactions.
2. The State bank shall have to promulgate, amend and supervise the implementation of, the regulations on information provision and reporting, and analyze the information forecast on the foreign exchange situation and foreign exchange transactions at home and abroad in order to serve the work of building and managing the foreign exchange transactions by the State.
The State Bank may exchange and provide services on information regarding foreign exchange and foreign exchange transactions for organizations and individuals in conformity with the provisions of law.
3. The State Bank Governor may authorize in writing directors of the State bank’s provincial/municipal branches to request organizations and/or individuals to supply information and data on foreign exchange and foreign exchange transaction in their respective localities.
4. The State Bank’s officials and employees shall have to keep secret and take responsibility for the information on the list of the branch’s secrets which they have received according to the regulations in this Circular.
SECTION III.- CREDIT INSTITUTIONS� RESPONSIBILITY TO PROVIDE INFORMATION
1. Credit institutions conducting foreign exchange activities shall have to regularly or irregularly supply information and data on foreign exchange activities to the State Bank.
2. Credit institutions conducting foreign exchange activities may request residents in Vietnam or foreign countries and non-residents in Vietnam to supply information on foreign exchange and/or foreign exchange transactions to effect business operation according to the regulations of the credit institutions or to serve the reporting to the State Bank.
3. Credit institutions conducting foreign exchange transactions may exchange and provide services on information regarding foreign exchange and foreign exchange transactions for organizations and individuals in conformity with the regulations in this Circular.
4. Credit institutions and their employees shall have to keep secret the data, documents and information on foreign exchange and foreign exchange transactions supplied by residents being organizations or individuals, except where otherwise requested by the State Bank or competent State bodies according to the provisions of law.
Part Nine
COMMENDATION AND HANDLING OF VIOLATIONS
SECTION I.- COMMENDATION
Organizations and individuals that have achievements in foreign exchange transactions, thus contributing to boosting the development of the national economy, have merits in detecting, denouncing and preventing acts of violating legislation on foreign exchange management or assist the competent State bodies in detecting acts of violating regulations on foreign exchange and foreign exchange transactions, shall be commended according to the provisions of law. The commendation shall be considered after the issuance of handling decision by the competent body.
SECTION II.- ACTS OF VIOLATION REGARDING FOREIGN EXCHANGE AND FOREIGN EXCHANGE TRANSACTIONS
Acts of violating the management of foreign exchange and foreign exchange transactions shall include:
1. Dealing in foreign exchange without licenses or not in line with the contents inscribed in the licenses granted by the State Bank;
2. Conducting foreign exchange transactions when such transactions have already been suspended or terminated or when the licenses have been withdrawn or have expired;
3. Opening and using foreign currency accounts overseas without permission;
4. Having foreign currency(ies) deposited abroad without permission or beyond the prescribed limits;
5. Transferring or carrying foreign currency(ies) abroad or purchasing, selling, paying and lending foreign currency(ies) in contravention of regulations;
6. Failing to abide by the regulations on foreign exchange status or Vietnam dong status as well as on the posting up of foreign exchange rates; buying and selling foreign currency(ies) not at the posted-up exchange rates as prescribed;
7. Covering or acting in collusion with the violations of the legislation on foreign exchange and foreign exchange transactions;
8. Failing to sell the foreign currency(ies) earned from current transactions according to the rates prescribed by the State;
9. The residents being Vietnamese economic organizations, foreign-invested enterprises and credit institutions in Vietnam, when borrowing and repaying debts or when providing loans and retrieving overseas loans, have failed to register them and report on the implementation of the borrowings with the State Bank as prescribed;
10. Transferring abroad the investment capital in cash or property (in forms of intangibles or tangibles) of Vietnamese economic organizations without registering them with the State Bank;
11. Using international standard gold contrarily to the purposes defined in this Circular; exporting and/or importing international standard gold without licenses granted by the State Bank or not in accordance with the contents inscribed in the licenses;
12. Licensed banks have failed to seriously examine papers and vouchers which must be produced in transactions related to foreign exchange;
13. Failing to supply information, data and/or reports according to the regulations on information provision and reporting;
14. Other acts of violation of the regulation on the management of foreign exchange.
SECTION III.- FORMS OF HANDLING VIOLATIONS
1. Organizations and individuals that have committed acts of violation defined in Section II, Part Nine of this Circular shall, depending on the nature and seriousness of the violations, be disciplined, have the material evidence confiscated, their operation suspended or their operation licenses withdrawn, or be administratively handled or examined for penal liability; if damage is caused, the compensation therefor must be made according to the provisions of law.
2. If the competent bodies, when handling violations of the regulations on foreign exchange and foreign exchange transactions, deem that the acts of violation bear signs of criminal offenses, they shall have to immediately forward the dossiers thereon to bodies competent to handle criminal cases for handling and at the same time inform the State Bank of such acts of violation for coordination in the handling thereof.
SECTION IV.- COMPETENCE TO HANDLE VIOLATION OF REGULATIONS ON FOREIGN EXCHANGE MANAGEMENT
1. The competence of the State Bank Inspectorate
The State Bank Inspectorate is competent to handle administrative violations committed by organizations and individuals in the fields of foreign exchange and foreign exchange transactions in such main forms of administrative sanctions as warning or pecuniary fine, and forms of additional sanctions such as definite suspension, confiscation of material evidence and means used in the administrative violations and other measures prescribed by the Ordinance on Handling of Administrative Violations.
2. Competence of concerned bodies
a/ Concerned bodies shall, within their respective jurisdiction, have to handle cases of violating the regulations on foreign exchange management and notify such cases of violation to the banks of the same level.
b/ In the course of inspection and handling, if detecting that licenses were granted ultra vires or their contents are contrary to laws, the handling bodies shall have to temporarily seize them immediately and at the same time notify the State Bank thereof.
SECTION V.- COMPLAINT, LITIGATION ABOUT DECISIONS ON HANDLING ADMINISTRATIVE VIOLATIONS
1. Organizations and/or individuals that have been sanctioned for administrative violations in the field of foreign exchange management and foreign exchange transactions may complain about administrative violation handling decisions with competent State bodies or take action at court. The complaining and litigation shall comply with the provisions of law.
2. During the period of complaining or litigation, the administratively sanctioned organizations and/or individuals still have to execute the administrative violation handling decisions. When decisions on the settlement of complaints are made by the competent State bodies or the court�s judgements or rulings take legal effect, such decisions, judgements or rulings shall apply.
SECTION VI.- HANDLING OF TEMPORARILY SEIZED FOREIGN EXCHANGE
1. When applying the form of temporary seizure of material evidence being foreign exchange, the persons with temporary seizure competence shall have to make report thereon, clearly stating the names, quantities and categories of the seized foreign exchange, the serial numbers (if any), status and quality of such foreign exchange, the signatures of the persons who have effected the temporary seizure, the persons and representatives of the organizations that have their material evidence temporarily seized and the witnesses. Within 7 (seven) working days after the temporary seizure, the agencies competent to order the temporary seizure shall have to deposit the foreign exchange being the material evidence of the violations in the nearest bank and notify it to the competent bodies for handling.
2. The handling bodies shall have to coordinate with functional agencies in conducting an expertise to see if the seized foreign exchange are real or fake, then pack them with seals before the persons or representatives of the organizations that have possessed such temporarily seized things and the witnesses;
3. After being expertised and sealed up, the material evidences of the violation which are foreign exchange must be immediately deposited in the nearest State-run commercial bank. When receiving the violation foreign exchange, such bank shall have to make a report on the handover, based on the temporary seizure report. The handover report must clearly inscribe what have been inscribed in the seizure report. The handover report shall be made in two copies, with one being handed to the seizing organization or individual and the other being kept by the bank.
4. When receiving the violation foreign exchange, the concerned bank shall have to account them into the account "Tam giu va cho xu ly" (temporarily seized and awaiting the handling). Pending the handling, the violation foreign exchange must not be used for any purpose. When the handling decision is made, the concerned bank shall have to account them as follows:
a/ If the violation foreign exchange is fully confiscated, the bank, after deducting a part as reward according to regulations, shall have to make the final settlement of the account "tam giu va cho xu ly" (temporarily seized and awaiting the handling) and the confiscated foreign exchange amount under the decision of the competent State body must be immediately remitted into the State budget.
b/ If the material evidence of the violation is partly confiscated as decided, the bank shall make the final settlement of the account "tam giu va cho xu ly" (temporarily seized and awaiting the handling) and account the portion awaiting the decision on confiscation as provided for above while the remaining foreign exchange portion will be returned to the involved party(ies).
c/ If it is decided to return the entire violation foreign exchange, the bank shall make the final settlement of the account "tam giu va cho xu ly" and return the temporarily seized foreign exchange to the involved party(ies).
d/ If the violation foreign exchange is fake foreign currency or not longer valid for circulation, the bank shall make the final settlement of the account "tam giu va cho xu ly" (temporarily seized and awaiting the handling) and seize such foreign exchange for destruction according to the regulations of the State Bank.
Part Ten
IMPLEMENTATION PROVISIONS
1. This Circular takes effect 15 days after its signing.
Circular No. 33/NH-TT of March 15, 1989 of the State Bank guiding the implementation of the Regulation on management of foreign exchange, issued together with Decree No. 161/HDBT of October 18, 1988 of the Council of Ministers (now the Government) and the previous regulations on foreign exchange management, which are contrary to the provisions of this Circular, are all annulled.
2. Organizations and individuals engaged in foreign exchange transactions shall have to implement this Circular.
3. Directors of the Departments and the Office as well as the chief inspector of the State Bank, directors of the State Bank’s provincial/municipal branches and the general directors (directors) of the credit institutions shall, within their respective functions, have to organize and guide the implementation of, and implement, this Circular.
THE STATE BANK GOVERNOR DEPUTY-GOVERNOR Duong Thu Huong |
ANNEX 2
LIST OF GOLD PRODUCERS RECOGNIZED BY INTERNATIONAL GOLD ASSOCIATION AND GOLD TRANSACTION OFFICE
Ordinal number | Country | Company | Ordinal number | Country | Company |
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 | Belgium France Germany Germany Germany Italy Italy Netherlands Netherlands Romania Spain Sweden Switzerland Switzerland Switzerland Switzerland Switzerland Switzerland Switzerland Switzerland Britain Britain Canada Canada Canada USA USA USA USA USA USA USA | Union Miniere Engelhard-CLAL Degussa Heraeus Norddeutsche Chimet Metalli Preziosi Drijfhout Schone Phoenix SEM PSA Boliden Argor-Heraeus Cendres & Metaux Metalor PAMP Credit Suisse FB SBC UBS Valcambi Engelhard-CLAL Johnson Matthey Johnson Matthey Noranda RCM ASARACO Engelhard Engelhard-CLAL H & H Refinering Homestake Johnson Matthey Heraeus | 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 | USA USA Brazil Brazil Brazil Brazil Brazil Brazil Colombia Mexico Hong Kong Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Republic of Korea Philippines Singapore Indonesia South Africa Zimbaabwe Australia Australia Australia Uzbekistan China | Metalor Sabin Casa da Moeda Degussa Goldmine MMV CRM Ourinvest Banco Republica Met-Mex Penoles Heraeus Mitsui Mitsui Ishifuku Nippon Sumitomo Tanaka Tokuriki Chugai Dowa Matsuda LG Metals Central Bank Degussa Logam Mulia Rand Refinery Fidelity AGR Golden West Johnson Matthey Navoi Refinery of China |
ANNEX 3
LIST OF CURRENT TRANSACTIONS
Revenue | Expenditure | Transaction contents |
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue | Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure | Revenue from export of goods, including the advance payment or deferred payment Reimbursement of money already paid for the export such as price reduction, damages, compensations and other expenses for goods export Payment for import of goods including freight and insurance, advance payment for the import of goods, payments related to investment in the form of machinery and equipment Revenue from temporary import for re-export Customs duty paid for goods sale and purchase, expenses for packing, goods loading and unloading expenses, and storing expenses Freight for water, air, land and train transportation (including costs for goods loading and unloading, transport of equipment and container); commissions and other expenses, payment for ship wreckage and salvage; payment for fares, expenses for post, telecommunications, information, media and T.V. services, aviation and navigation expenses Expenses related to tourist services Payment for tourist accommodation and related services (including restaurant services, tourist services, car rental, ferry and yard service charges) Expenses for study and meetings (including fees for attending study courses, seminars and meetings) Medical expenses Expenses for technical consulation, management, maintenance and repair (licensing fee, fees for technological knowhow transfer, administrative fees, charges for use of trademarks, designs and labels) and surveying fees Payment for services contracts (expenses for professional services, banking services, market-probing fees, and other expenses) Legal consultation fees Arising expenses related to designing and building projects as well as purchase of goods and services from sub-contracts Commissions related to purchase/sale of goods and services, hirings, fees for quality inspection and evaluation and escrow classification, insurance premiums and brokerage fees, payment for the added parts of future goods trading contracts, optional contracts, time contracts and other goods bartering contract Expenses for advertisement, marketing, T.V, programs, photos and films overseas (including salaries and wages, business space renting, administrative expenses, insurance premiums, payment to marketing company by investing company) Expenses for maintenance and repair of machines, equipment (ship, aircraft, and transport vehicles of different kinds) Expenses for branches and representative offices (office rentals and other expenses for their operations) Production rights, copy rights Payment for transport insurance, re-insurance (premiums for ship hull, aircraft and other transport means, damages) Fines in foreign trade activities Payment of wages, salaries, bonuses and other allowances Expenses for operating hired machinery and equipment Interests, dividends and other related revenues from direct investment (including loans provided by the parent company) Loan interests and deposit interest Interests on securities investment Transferring back home profits earned from direct investment Financial assistance, non-refundable aids from international organizations, non-governmental organizations Membership fees, prizes Financial support by the Government |
ANNEX 4
LIST OF CAPITAL TRANSACTIONS
Revenue | Expenditure | Transaction contents |
Revenue Revenue Revenue Revenue Revenue Revenue | Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure | Cash transfer and assignment of securities Assignment of shares and transfer of long-term capital from the company to its branches Assignment of contributed capital in the direct investment project Transferring back home sources of contributed capital from direct investment and investment in the purchase of shares and other valuable papers Borrowings and debt payment; loans and retrieval of loans Transactions on real estates |
THE STATE BANK GOVERNOR DEPUTY-GOVERNOR Duong Thu Huong |
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