Circular No. 31/2018/TT-NHNN dated December 18, 2018 of the State Bank of Vietnam on guiding foreign exchange management for outward investment in petroleum industry

THE STATE BANK OF VIETNAM

Circular No. 31/2018/TT-NHNN dated December 18, 2018 of the State Bank of Vietnam on guiding foreign exchange management for outward investment in petroleum industry

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

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on investment dated November 26, 2014 and the Law dated November 22, 2016 on amendments to Article 6 and Appendix 4 regarding the list of business lines subject to specific business conditions of the Law on investment;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005 and the Ordinance on amendments to the Ordinance on Foreign Exchange dated March 18, 2013;

Pursuant to the Government’s Decree No. 124/2017/ND-CP dated November 15, 2017 on outward investment in petroleum industry;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates a Circular guiding foreign exchange management for outward investment in petroleum industry.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular provides guidance on foreign exchange management for outward investment in petroleum industry, including: transfer of foreign currency abroad before the issuance of the outward investment registration certificate by investors in the petroleum industry (hereinafter referred to as “pre-investment transfer of foreign currency abroad”); opening and use of foreign currency accounts serving the transfer of investment funds abroad before and after the issuance of the outward investment registration certificate; registration and modification of registration of forex transactions by investors after the issuance of the outward investment registration certificate; transfer of investment funds, profits and lawful incomes earned from petroleum operations from foreign countries to Vietnam.

2. The foreign exchange management for outward investment projects in petroleum industry in the form prescribed in Point d Clause 1 Article 52 of the Law on investment shall not be governed by regulations herein.

Article 2. Subject of application

1. Investors, including institutional residents (excluding credit institutions) and individual residents making outward investment in petroleum industry in the forms prescribed in Points a, b, c, dd Clause 1 Article 52 of the Law on investment (hereinafter referred to as “investors”).

2. Other organizations and individuals involved in the outward investment in petroleum industry.

Article 3. Interpretation of terms

For the purpose of this Circular, the terms below are construed as follows:

1. “Licensed credit institution” refers to a credit institution or branch of a foreign bank that is licensed to trade or provide forex service in accordance with regulations of the State Bank of Vietnam (hereinafter referred to as “SBV”).

2. “Investment capital account” refers to the investor’s payment account in foreign currency or VND opened at a licensed credit institution in Vietnam after the project is granted the outward investment registration certificate in the petroleum industry for making collections and payments in accordance with regulations herein.

3. “Pre-investment foreign currency account” refers to the investor’s payment account in foreign currency opened at a licensed credit institution in Vietnam for transferring foreign currency abroad before the investment as regulated in Clause 1 and Clause 4 Article 5 of the Government’s Decree No. 124/2017/ND-CP dated November 15, 2017.

4. “Registration of outward investment-related forex transactions in petroleum industry” refers to the investor carrying out the registration of information concerning the investor, investment funding, investment capital account opened at the licensed credit institution and the progress of transfer of investment funding in cash abroad with.

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