Circular 23/2022/TT-NHNN amend documents to decentralize settlement of administrative procedures in foreign exchange management

CIRCULAR

Amending and supplementing a number of articles of legal documents for delegation of powers to settle administrative procedures in the field of foreign exchange management^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions; and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange; and the March 18, 2013 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 102/2022/ND-CP of December 12, 2022, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Foreign Exchange Management Department,

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of legal documents for delegation of powers to settle administrative procedures in the field of foreign exchange management.

Article 1. To amend and supplement a number of articles of Circular No. 21/2014/TT-NHNN of August 14, 2014, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange activities and conditions, order and procedures for approval of foreign exchange activities of credit institutions and foreign bank branches (below referred to as Circular No. 21/2014/TT-NHNN)

1. To add the following Article 4a:

“Article 4a. Competence to approve foreign exchange activities

1. The Governor of the State Bank of Vietnam is competent to approve foreign exchange activities and extension of foreign exchange activities for the following entities:

a/ Commercial banks, cooperative banks, banks for social policies, general finance companies, factoring finance companies, consumer credit finance companies, and financial leasing companies;

b/ Foreign bank branches subject to micro-safety inspection and supervision by the Banking Supervision Agency.

2. Directors of the State Bank’s provincial-level branches are competent to approve foreign exchange activities and extension of foreign exchange activities for foreign bank branches whose head offices are located in the provinces or cities, except the foreign bank branches specified at Point b, Clause 1 of this Article.”

2. To amend and supplement Clause 1, Article 12 (which was amended and supplemented under Clause 12, Article 1 of Circular No. 28/2016/TT-NHNN of October 5, 2016, of the Governor of the State Bank of Vietnam, amending and supplement a number of articles of Circular No. 21/2014/TT-NHNN (below referred to as Circular No. 28/2016/TT-NHNN)) as follows:

“1. A commercial bank that wishes to carry out foreign exchange activities in the domestic or international market shall make 1 dossier set specified in Article 11 of this Circular and send it by post or hand-deliver it to the State Bank’s Single-Window Division. In case such dossier is incomplete, within 10 working days after receiving it, the State Bank shall request in writing the commercial bank to supplement the dossier.”

3. To amend and supplement Article 19 (which was amended and supplemented under Clause 18, Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

“Article 19. Dossiers, order and procedures for requesting the approval of basic foreign exchange activities in the domestic and international markets

A foreign bank branch that wishes to carry out basic foreign exchange activities in the domestic or international market shall make 1 dossier set and send it by post or hand-deliver it to the State Bank’s Single-Window Division or the State Bank’s provincial-level branch according to the competence specified in Article 4a of this Circular. The dossier, order and procedures for requesting the approval of basic foreign exchange activities in the domestic and international markets are the same as those for commercial banks as specified in Clauses 1, 2 and 3, Article 11, and Article 12, of this Circular.”

4. To amend and supplement Article 20 (which was amended and supplemented under Clause 19, Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

“Article 20. Dossiers, order and procedures for requesting the approval of other foreign exchange activities in the domestic and international markets

A foreign bank branch that wishes to carry out other foreign exchange activities in the domestic or international market shall make 1 dossier set and send it by post or hand-deliver it to the State Bank’s Single-Window Division or the State Bank’s provincial-level branch according to the competence specified in Article 4a of this Circular. The dossier, order and procedures for requesting the approval of other foreign exchange activities and the extension of other foreign exchange activities in the domestic and international markets are the same as those for commercial banks as specified in Clauses 1, 4 and 5, Article 11, and Article 12, of this Circular.”

5. To amend and supplement Article 36 (which was amended and supplemented under Clause 35, Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

a/ To amend and supplement Clause 1 as follows:

“1. The Banking Supervision Agency shall:

a/ Act as a focal point for receiving and sending documents for solicitation of opinions of the State Bank’s related units, and appraise and submit to the State Bank Governor dossiers of request for approval of foreign exchange activities or approval of extension of foreign exchange activities of credit institutions and foreign bank branches specified in Clause 1, Article 4a of this Circular;

b/ Act as a focal point for solving problems relating to the approval of foreign exchange activities or approval of extension of foreign exchange activities of credit institutions and foreign bank branches specified in Clause 1, Article 4a of this Circular.”

b/ To add the following Clause 6:

“6. The State Bank’s provincial-level branches shall:

a/ Receive and send documents for solicitation of opinions of related units (if any), and appraise dossiers of request for approval of foreign exchange activities or approval of extension of foreign exchange activities of foreign bank branches specified in Clause 2, Article 4a of this Circular;

b/ Act as a focal point for solving problems relating to the approval of foreign exchange activities or approval of extension of foreign exchange activities of foreign bank branches specified in Clause 2, Article 4a of this Circular.”

6. To replace Appendices 01 and 04 to Circular 21/2014/TT-NHNN with Appendices 01 and 02 to this Circular.

Article 2. To amend and supplement a number of articles of the Regulation on payment for purchase, sale and exchange of goods and commercial services in the Cambodia-Vietnam border areas promulgated together with Decision No. 17/2004/QD-NHNN of January 05, 2004, of the Governor of the State Bank of Vietnam

1. To amend and supplement Clause 1, Article 8 (which was amended and supplemented under Article 3 of Circular No. 29/2015/TT-NHNN of December 22, 2015, of the Governor of the State Bank of Vietnam, amending and supplementing a number of the State Bank of Vietnam’s legal documents specifying dossier components requiring certified copies) as follows:

“1. The use of freely convertible foreign currencies in cash for making payment for purchase, sale and exchange of goods and commercial services in the border areas between Vietnamese traders and Cambodian traders only applies in case payment cannot be made via banks; and only applies to Vietnamese traders entitled to receive foreign-currency payments in cash for goods sale and service provision to Cambodian traders, but does not apply to Vietnamese traders entitled to use foreign currencies in cash for making payment for goods imported from and services provided by Cambodian traders.

A Vietnamese trader that wishes to receive foreign-currency amounts in cash shall make 1 dossier set and send it by port or hand-deliver it to the single-window division of the State Bank’s provincial-level branch where its/his/her head office is located for grant of a permit for receipt of foreign currencies in cash from exported goods to Cambodia. Such a dossier must comprise:

- A written request for receipt of foreign-currency amounts in cash from exported goods to Cambodia, made according to the form provided in Appendix 01 to this Circular;

- A copy of the competent agency’s written approval, for goods suspended from export or goods subject to conditional export;

- A copy of the commercial contract signed with the Cambodian trader, including an agreement on payment in freely convertible foreign currencies in cash (certified by the lawful representatives of the two traders).

Within 7 working days after receiving a complete and valid dossier, the State Bank’s provincial-level branch shall issue a permit for receipt of foreign currencies in cash from goods exported to Cambodia for the Vietnamese trader, which is made according to the form provided in Appendix 02 to this Circular. In case of refusal, the State Bank’s provincial-level branch shall reply in writing, clearly stating the reason.

A Vietnamese trader shall remit a foreign currency amount received in cash into its foreign-currency deposit account opened at a licensed bank within 3 working days after receiving such amount as certified by the border-gate customs office. After doing so, the Vietnamese trader shall submit a copy of the cash deposit slip to the State Bank’s provincial-level branch that has granted the permit for receipt of foreign currencies in cash.

Upon remitting a foreign-currency amount in cash into its/his/her account, in addition to a permit for receipt of foreign currencies in cash, the Vietnamese trader shall submit to a commercial bank the following papers:

- The original customs declaration (certified by the border-gate customs office of the foreign-currency amount in cash carried from abroad);

- A copy of the export goods declaration (submitted after the goods are exported).”

2. To replace Appendix 1 to Decision No. 17/2004/QD-NHNN of January 05, 2004, of the Governor of the State Bank of Vietnam, promulgating the Regulation on payment for purchase, sale, and exchange of goods and commercial services in the Cambodia-Vietnam border areas, with Appendix 03 to this Circular.

Article 3. Responsibility for organization of implementation

The Chief of the Office, Director of the Foreign Exchange Management Department, and heads of units of the State Bank of Vietnam, credit institutions, foreign bank branches and Vietnamese traders shall implement this Circular.

Article 4. Implementation provisions

1. This Circular takes effect on February 15, 2023.

2. From the effective date of this Circular, the following articles and clauses cease to be effective:

a/ Article 3 of Circular No. 29/2015/TT-NHNN of December 22, 2015, of the Governor of the State Bank of Vietnam, amending and supplementing the State Bank of Vietnam’s legal documents specifying dossier components requiring certified copies.

b/ Clauses 18 and 19, Article 1, and Clause 1, Article 2 of Circular No. 28/2016/TT-NHNN of October 5, 2016, of the Governor of the State Bank of Vietnam, amending and supplementing a number of articles of Circular No. 21/2014/TT-NHNN, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange activities, and conditions, order and procedures for approval of foreign exchange activities of credit institutions and foreign bank branches.-

For the Governor of the State Bank of Vietnam
Deputy Governor
PHAM THANH HA

* The Appendices to this Circular are not translated.