Vietnamese03 circumstances foreign investor leave collateral by foreign currency in auction
On March 29, 2019, the State Bank of Vietnam issues the Circular No. 03/2019/TT-NHNN ON amending and supplementing a number of articles of the State Bank Governor’s Circular No. 32/2013/TT-NHNN of December 26, 2013, guiding the implementation of the regulations on limited use of foreign exchange in the Vietnamese territory.
Accordingly, this Circular supplement the regulation of circumstances which a foreign investor may leave a deposit or provide a collateral in a foreign currency by the method of account transfer when participating in an auction in the following cases:
- Purchasing shares in a state-owned enterprise to be equitized as approved by the Prime Minister;
- Purchasing the state’s shares or capital contributions in a state-owned enterprise or an enterprise with state capital undergoing divestment as approved by the Prime Minister;
- Purchasing shares or capital contributions in a state-owned enterprise invested in other enterprises undergoing divestment of state capital as approved by the Prime Minister.
In case of winning the auction, the foreign investor shall transfer investment capital under the regulations on foreign exchange management to pay for the value of purchased shares or capital contributions. In case of failure at the auction, the foreign investor may transfer abroad the foreign-currency deposit or collateral after subtracting related expenses (if any).
This Circular takes effect on May 13, 2019.
Circular 03/2019/TT-NHNN DOC (Word)
Circular 03/2019/TT-NHNN PDF (Original)
