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

CIRCULAR

Guiding foreign exchange management concerning offshore investment in petroleum activities^[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 November 26, 2014 Law on Investment and the November 22, 2016 Law Amending and Supplementing Article 6 and Appendix 4 on the List of Sectors and Trades Subject to Conditional Business Investment of the Law on Investment;

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. 124/2017/ND-CP of November 15, 2017, prescribing offshore investment in petroleum activities;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, 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 guiding foreign exchange management concerning offshore investment in petroleum activities.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides foreign exchange management concerning offshore, investment in petroleum activities, including outbound transfer of foreign currencies by investors for petroleum activities before obtaining an offshore investment registration certificate (below referred to as pre-investment outbound transfer of foreign currencies); opening and use of foreign-currency accounts to transfer investment capital abroad before or after obtaining an offshore investment registration certificate; registration of foreign exchange transactions or registration of change of foreign exchange transactions by investors after obtaining an offshore investment registration certificate; and transfer of investment capital, profits and lawful incomes from overseas petroleum activities back to Vietnam.

2. This Circular does not regulate foreign exchange management concerning offshore petroleum investment projects in the form prescribed at Point d, Clause 1, Article 52 of the Law on Investment.

Article 2.Subjects of application

1. Investors, including institutional residents (excluding credit institutions) and individual residents making offshore investment in petroleum activities in the forms prescribed at Point a, b, c and dd, Clause 1, Article 52 of the Law on Investment (below referred to as “investors”).

2. Other organizations and individuals involved in offshore investment in petroleum activities.

Article 3.Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Licensed credit institution means a credit institution or foreign bank branch that is licensed to conduct foreign exchange business and provide foreign exchange services in accordance with regulations of the State Bank of Vietnam (below referred to as the State Bank).

2. Offshore investment capital account (below referred to as investment capital account) means a foreign-currency or Vietnam-dong payment account opened by an investor at a licensed credit institution in Vietnam to conduct collection and payment transactions in accordance with this Circular after its/his/her project is granted an offshore investment registration certificate for petroleum activities.

3. Foreign-currency account opened before obtaining an offshore investment registration certificate for petroleum activities (below referred to as pre-investment foreign-currency account) means a foreign-currency payment account opened by an investor at a licensed credit institution in Vietnam to make pre-investment outbound transfer of foreign currencies under Clauses 1 and 4, Article 5 of the Government’s Decree No. 124/2017/ND-CP of November 15, 2017, prescribing offshore investment in petroleum activities (below referred to as Decree No. 124/2017/ND-CP).

4. Registration of foreign exchange transactions related to offshore investment in petroleum activities means an investor registering with the State Bank information about itself/himself/herself, its/his/her investment capital and investment capital account opened at a licensed credit institution to make overseas investment in petroleum activities, and the schedule of outbound transfer of investment capital under Article 21 of Decree No. 124/2017/ND-CP and this Circular.

5. Registration of change of foreign exchange transactions related to offshore investment in petroleum activities means an investor registering any change with the State Bank under Clauses 1 and 2, Article 22 of Decree No. 124/2017/ND-CP and this Circular.

6. Certification of registration of foreign exchange transactions related to offshore investment in petroleum activities means the State Bank’s written certification of an investor’s registration of foreign exchange transactions related to offshore investment in petroleum activities in accordance with Decree No. 124/2017/ND-CP and this Circular.

7. Certification of registration of change of foreign exchange transactions related to offshore investment in petroleum activities means the State Bank’s written certification of an investor’s registration of change of foreign exchange transactions related to offshore investment in petroleum activities in accordance with Decree No. 124/2017/ND-CP and this Circular.

Article 4.Currencies used for offshore investment in petroleum activities

Currencies used for offshore investment in petroleum activities include:

1. The foreign currencies on accounts opened at licensed credit institutions or purchased from licensed credit institutions or foreign currencies from other lawful sources as prescribed by law.

2. Vietnam dong in case of transfer of investment capital to a host country or territory with which Vietnam has concluded a bilateral or multilateral agreement permitting the use of Vietnam dong in payment and money transfer transactions.

Chapter II

PRE-INVESTMENT OUTBOUND TRANSFER OF FOREIGN CURRENCIES

Article 5.Principles of pre-investment outbound transfer of foreign currencies

1. Before obtaining an offshore investment registration certificate for petroleum activities, an investor may transfer abroad foreign currencies to carry out market research, opportunity seeking and investment preparation activities prescribed in Clauses 1 and 4, Article 5 of Decree No. 24/2017/ND-CP.

2. Pre-investment outbound transfer of foreign currencies must be conducted via investors’ pre-investment foreign-currency accounts under Articles 7 and 8 of this Circular.

3. The foreign-currency limit for pre-investment outbound transfer of a project prescribed in Clauses 2 and 4, Article 5 of Decree No. 124/2017/ND-CP is the total foreign-currency amount to be transferred abroad before making investment of such project. In case an overseas investment project involves more than one investor, the foreign-currency limit for pre-investment outbound transfer is the total foreign-currency amount to be transferred abroad by the investors participating in such project.

4. The aggregate of the foreign-currency amount transferred abroad before making investment and the amount registered for outbound transfer after obtaining an offshore investment registration certificate of each project must not exceed the project’s total offshore investment capital stated in the certificate. In case an overseas investment project involves more than one investor, the aggregate of the foreign-currency amount transferred abroad before making investment and the amount registered for outbound transfer after obtaining an offshore investment registration certificate of each investor must not exceed the proportion of its/his/her contributed capital amount stated in the certificate.

5. In case of failure to set up an investment project or to further implement, or obtain an offshore investment registration certificate for, an offshore investment project, the investor shall transfer back to Vietnam the rest of the foreign-currency amount already transferred abroad (if any) and then close its/his/her pre-investment foreign-currency account.

6. Investors shall take responsibility before law for legality, purposes and efficiency of foreign-currency amounts transferred abroad before making investment.

Article 6.Principles of approval of pre-investment outbound transfer of foreign currencies

1. Investors shall perform procedures of request for the State Bank (Foreign Exchange Management Department)’s approval of pre-investment outbound transfer of foreign currencies according to the order, procedures and dossiers prescribed in Article 7 of Decree No. 124/2017/ND-CP. In case an investment project involves more than one investor, every investor shall perform procedures of request for the State Bank’s approval of pre-investment outbound transfer of foreign currencies. Written requests for pre-investment outbound transfer of foreign currencies shall be made according to the form provided in Appendix 01 to this Circular.

2. The State Bank shall consider and issue written approval of investors’ pre-investment outbound transfer of foreign currencies, made according to the form provided in Appendix 02 to this Circular.

3. The State Bank of Vietnam shall certify the foreign-currency amounts investors have transferred abroad before making investment in the written registrations of foreign-currency transactions related to offshore investment in petroleum activities.

Article 7. Principles of opening and use of pre-investment foreign-currency accounts

1. An investor may open only 1 (one) pre-investment foreign-currency account at 1 (one) licensed credit institution, except the case prescribed in Clause 4 of this Article. In case an overseas investment project involves more than one investor, each of these investors shall open 1 (one) pre-investment foreign-currency account at the same licensed credit institution to make pre-investment outbound transfer of foreign currencies.

2. An investor making pre-investment outbound transfer of foreign currencies for more than one offshore investment project shall open one separate pre-investment foreign-currency account for each project.

3. After its/his/her project obtains an offshore investment registration certificate, the pre-investment foreign-currency account prescribed in Clauses 1 and 2 of this Article shall be used as investment capital account.

4. An investor that wishes to change either the type of the foreign currency on its/his/her pre-investment foreign-currency account or the licensed credit institution where such account is opened shall follow the following principles:

a/ To open a pre-investment foreign-currency account in another foreign currency or at another licensed credit institution;

b/ Within 5 (five) working days after opening a pre-investment foreign-currency account in another foreign currency, the investor shall convert the whole balance of the old pre-investment foreign-currency account into the new type of foreign currency and then transfer such amount to the new pre-investment foreign-currency account and concurrently close the old one. Within 5 (five) working days after opening a pre-investment foreign-currency account at another licensed credit institution, the investor shall transfer the whole balance of the old pre-investment foreign-currency account to the new account and concurrently close the old one;

c/ The investor may conduct collection and payment transactions on the new pre-investment foreign-currency account only after the old account has been closed (except the receipt of the balance transferred from the old pre-investment foreign-currency account and the receipt of the balance in the new foreign currency converted from the balance transferred from the old account, for case of changing the type of foreign currency of the pre-investment foreign-currency account);

d/ Within 15 (fifteen) days after completing the procedures specified at Points a and b of this Clause, the investor shall notify the State Bank (the Foreign Exchange Management Department) of change of the pre-investment foreign-currency account, for cases of requesting for approval of pre-investment transfer of foreign currencies specified at Article 6 of this Circular.

5. All collection and payment transactions specified in Article 8 of this Circular must be conducted via pre-investment foreign-currency accounts.

6. The procedures for opening and closing pre-investment foreign-currency accounts must comply with the State Bank’s regulations on the opening and use of payment accounts at payment service providers.

Article 8. Collection and payment transactions on pre-investment foreign-currency accounts

1. Collection transactions:

a/ Collecting money transferred from investors’ foreign-currency accounts;

b/ Collecting foreign currencies purchased from licensed credit institutions in accordance with law;

c/ Collecting foreign currencies for transfer back to Vietnam in case investors have not yet used up the amount transferred abroad to carry out market research, opportunity seeking and investment preparation activities before obtaining an offshore investment registration certificate under Clauses 1 and 4, Article 5 of Decree No. 124/2017/ND-CP or a foreign partner refunds expenses for setting up the overseas petroleum investment project;

d/ Collecting the foreign-currency balance from the old pre-investment foreign-currency account, in case of changing the pre-investment foreign-currency account under Clause 4, Article 7 of this Circular;

dd/ Other foreign-currency collection transactions related to offshore investment activities before obtaining an offshore investment registration certificate.

2. Payment transactions:

a/ Making outbound transfer of foreign currencies for the purposes prescribed in Clauses 1 and 4, Article 5 of Decree No. 124/2017/ND-CP;

b/ Selling foreign currencies to licensed credit institutions;

c/ Transferring money into investors’ foreign-currency account.

Chapter III

OPENING AND USE OF INVESTMENT CAPITAL ACCOUNTS

Article 9. Principles of opening and use of investment capital accounts

1. After being granted an offshore investment registration certificate, an investor shall open 1 (one) investment capital account in 1 (one) type of foreign currency that meets its/his/her demand for outbound transfer of investment capital for petroleum activities at 1 (one) licensed credit institution (except the case prescribed in Clause 3, Article 7 of this Circular). All collection and payment transactions prescribed in Articles 10 and 11 of this Circular must be conducted via such investment capital account.

2. In case of transferring investment capital abroad in Vietnam dong, an investor may concurrently open and use 1 (one) Vietnam-dong investment capital account and 1 (one) foreign-currency investment capital account at 1 (one) licensed credit institution.

3. An investor that has more than one overseas investment project shall open a separate investment capital account for each project.

4. In case an overseas investment project involves more than one investor, each of these investors shall open a separate investment capital account for outbound transfer of its/his/her capital.

5. An investor that wishes to change either the type of foreign currency on its/his/her investment capital account or the licensed credit institution where such account is opened shall follow the following principles:

a/ To open an investment capital account in another foreign currency or at another licensed credit institution;

b/ To register change of foreign exchange transactions related to offshore investment in petroleum activities with the State Bank under Clause 2, Article 22 of Decree No. 124/2017/ND-CP and Chapter IV of this Circular;

c/ Within 5 (five) working days after the State Bank certifies the registration of change of the type of foreign currency on the investment capital account, the investor shall convert the whole foreign-currency balance of the old investment capital account into the new foreign currency then transfer such amount to the new account, and concurrently close the old one. Within 5 (five) working days after the State Bank certifies the registration of change of investment capital account to another credit institution, the investor shall transfer the whole balance of the old investment capital account to the new account and concurrently close the old one;

d/ To use the new investment capital account for conducting the collection and payment transactions specified in Articles 10 and 11 of this Circular only after completing the procedures prescribed at Points a, b and c of this Clause (except the receipt of the balance transferred from the old investment capital account and the receipt of the balance in the new foreign currency changed from the foreign currency balance of the old account in case of changing the type of foreign currency of the investment capital account);

6. The procedures for opening and closing investment capital accounts must comply with the State Bank’s regulations on the opening and use of payment accounts at payment service providers.

Article 10. Collection and payment transactions on foreign-currency investment capital accounts

1. Collection transactions:

a/ Collecting foreign currencies transferred from investors’ foreign-currency accounts;

b/ Collecting foreign currencies purchased from licensed credit institutions in accordance with law to serve offshore petroleum investment;

c/ Collecting foreign-currency amounts received  by investors as recovered capital (cost) under Clause 5, Article 3 of Decree No. 124/2017/ND-CP;

d/ Collecting overseas investment capital amounts transferred back to Vietnam in case of transfer of overseas investment capital, reduction of investment capital, or liquidation or termination of overseas investment activities;

dd/ Collecting profits and lawful incomes from offshore investment in petroleum activities for transfer back to Vietnam;

e/ Collecting principals and interests on loans provided by investors to the legal entities that implement investment projects in overseas petroleum activities in accordance with law;

g/ Collecting debts from the guaranteed which are related to guarantee amounts provided by investors to the legal entities that implement investment projects in overseas petroleum activities in accordance with law;

h/ Collecting the balance of the old investment capital account, in case of change of the investment capital account prescribed in Clause 5, Article 9 of this Circular;

i/ Other lawful collection transactions related to offshore investment in petroleum activities.

2. Payment transactions:

a/ Making outbound transfer of investment capital for petroleum activities;

b/ Providing loans to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

c/ Making payment for fulfilling the guarantee obligation related to guarantee amounts provided by investors to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

d/ Selling foreign currencies to licensed credit institutions;

dd/ Transferring money into investors’ foreign-currency accounts;

e/ Other lawful payment transactions related to offshore investment in petroleum activities.

Article 11.Collection and payment transactions on Vietnam-dong investment capital accounts

1. Collection transactions:

a/ Collecting money transferred from Vietnam-dong accounts of investors;

b/ Collecting principals and interests on loans provided by investors to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

c/ Collecting debts from the guaranteed which are related to guarantee amounts provided by investors to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

d/ Collecting Vietnam-dong amounts received by the investor as recovered capital under Clause 5, Article 3 of Decree No. 124/2017/ND-CP;

dd/ Collecting overseas investment capital amounts in Vietnam dong for transfer back to Vietnam in case of transfer of overseas investment capital, reduction of investment capital, or liquidation or termination of overseas investment in petroleum activities;

e/ Collecting profits and lawful incomes in Vietnam dong from offshore investment in petroleum activities for transfer back to Vietnam;

g/ Collecting the balance of the old investment capital account, in case of change of the investment capital account prescribed in Clause 5, Article 9 of this Circular;

i/ Other Vietnam-dong lawful collection transactions related to offshore investment in petroleum activities.

2. Payment transactions:

a/ Making outbound transfer of Vietnam-dong investment capital for petroleum activities;

b/ Transferring money into Vietnam-dong accounts of investors;

c/ Providing loans to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

d/ Making payment for fulfilling the guarantee obligation related to guarantee amounts provided by investors to the legal entities that implement overseas investment projects in petroleum activities in accordance with law;

dd/ Other lawful Vietnam-dong payment transactions related to offshore investment in petroleum activities.

Chapter IV

REGISTRATION AND REGISTRATION OF CHANGE OF FOREIGN EXCHANGE TRANSACTIONS RELATED TO OFFSHORE INVESTMENT IN PETROLEUM ACTIVITIES

Article 12.Registration and registration of change of foreign exchange transactions

1. After being granted an offshore investment registration certificate, an investor shall register with the State Bank’s provincial-level branch in the locality foreign exchange transactions related to offshore investment in petroleum activities or register with and notify the latter upon occurrence of changes of foreign exchange transactions related to offshore investment in petroleum activities and according to the order, procedures and dossiers prescribed in Articles 21 and 22 of Decree No. 124/2017/ND-CP. In case a project involves more than one investor, every investor shall make such registration with the State Bank’s provincial-level branch in the locality where it is headquartered, for institutional investors, or where he/she registers permanent residence, for individual investors, or make such registration and notification of changes with the latter.

2.A written registration for foreign exchange transactions related to offshore investment in petroleum activities or a written registration for change of foreign exchange transactions related to offshore investment in petroleum activities shall be made according to Appendices 03 and 04 to this Circular, respectively.

Article 13.Competence to certify the registration and registration of change of foreign exchange transactions

1. The State Bank’s provincial-level branches may certify the registration and registration of change of foreign exchange transactions related to offshore investment in petroleum activities for institutional investors which are headquartered and individual investors who register permanent residence in their localities (made according to the form provided in Appendices 05 and 06 to this Circular, respectively).

2. In case a change related to the investor of a project results in the change of the State Bank’s provincial-level branch competent to certify the registration of foreign exchange transactions related to offshore investment in petroleum activities, the State Bank’s initial provincial-level branch certifying the registration and registration of change of foreign exchange transactions shall:

a/ Receive the investor’s dossier for registration of change of foreign exchange transactions related to offshore investment in petroleum activities;

b/ Within 3 (three) working days after receiving the dossier, send all originals of the papers in this dossier and copies of the papers in the previous dossier (if any) for registration or registration for change to the State Bank’s competent provincial-level branch defined in Clause 1 of this Article for further processing and, at the same time, notify the investor of the sending of its/his/her/dossier of registration of change of foreign exchange transactions related to offshore investment in petroleum activities to the State Bank’s new competent provincial-level branch.

Article 14. Validity of written certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities

1. The State Bank’s written certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities shall automatically expire when the competent agency issues a decision invalidating the investor’s offshore investment registration certificate or when an investor withdraws from an investment project in case the project involves more than one investor and has its/his/her offshore investment registration certificate modified by the competent agency. In this case, the investor may continue to use its/his/her investment capital account for collecting overseas profits, lawful incomes and investment capital for transfer back to Vietnam.

2. When a competent agency concludes that the dossier and documents for registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities are forged, the agency competent to certify registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities defined in Article 13 of this Circular shall send a written notice on invalidation of the written certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities to the investor and the credit institution where the investor’s investment capital account is opened, stating the reason.

Chapter V

TRANSFER OF OVERSEAS PROFITS, LAWFUL INCOMES AND INVESTMENT CAPITAL BACK TO VIETNAM

Article 15. Transfer of profits, lawful incomes and investment capital back to Vietnam

1. Investors shall transfer overseas profits, lawful incomes and investment capital to Vietnam via their investment capital accounts in accordance with this Circular after liquidating or terminating investment projects, reducing investment capital or transferring investment projects.

2. In case of termination of an offshore investment project specified at Point d, Clause 1, Article 62 of the Law on Investment, before terminating the project and transferring the whole overseas investment capital amount to a foreign investor, the investor shall notify such the State Bank’s provincial-level branch of the locality where it/he/she registers foreign exchange transactions related to offshore investment in petroleum activities.  

Article 16.  Use of profits overseas

1. An investor that uses profits earned from overseas investment activities for increasing capital or expanding overseas investment activities shall carry out procedures for modification of offshore investment registration certificates at Vietnamese competent agencies in accordance with the current law on offshore investment, and send reports to the State Bank’s provincial-level branch of the locality where it/he/she registers foreign exchange transactions related to offshore investment in petroleum activities within 30 (thirty) days after being granted a modified offshore investment registration certificate.

2. An investor that uses profits earned from an overseas investment project for implementing another overseas investment project in petroleum activities, after being granted an offshore investment registration certificate for the new project, shall register foreign exchange transactions related to offshore investment in petroleum activities with the State Bank under Article 21 of Decree No. 124/2017/ND-CP and Chapter IV of this Circular.

Chapter VI

RESPONSIBILITIES OF RELATED PARTIES

Article 17. Responsibilities of investors

1. To comply with regulations on offshore investment in petroleum activities, and conduct outbound and inbound transfer of capital and implement contents related to offshore investment in petroleum activities in accordance with this Circular.

2. To honestly and fully declare collection and payment transactions on pre-investment foreign-currency accounts and investment capital accounts; to supply documents related to offshore investment in petroleum activities as requested and guided by licensed credit institutions.

3. To transfer capital abroad under the State Bank’s written certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities.

4. To conduct pre-investment outbound transfer of foreign currencies after obtaining the State Bank’s written approval (for cases prescribed at Points b and d, Clause 2 and Points a and c, Clause 4, Article 5 of Decree No. 124/2017/ND-CP).

5. To take responsibility for the accuracy and truthfulness of documents and contents of registration or registration ofchange of foreign exchange transactions related to offshore investment in petroleum activities in accordance with this Circular and relevant laws.

6. To take responsibility for the use of money on pre-investment foreign-currency accounts and investment capital accounts for the purposes notified to licensed credit institutions and registered with the State Bank and stated in the State Bank’s certification of registration or registration for change certified by the State Bank.

7. To comply with the reporting regime prescribed in Article 21 of this Circular and relevant laws.

8. To submit to supervision and inspection of the observance of the State Bank’s current regulations on foreign exchange management.

Article 18. Responsibilities of licensed credit institutions

1. To guide investors in  carrying out procedures for opening, closing and using investment capital accounts and pre-investment foreign-currency accounts in accordance with this Circular and relevant laws.

2. To open or close investment capital accounts and pre-investment foreign-currency accounts and conduct collection and payment transactions on such accountsat the request of investors in accordance with this Circular.

3. To make pre-investment outbound transfer of foreign currency amounts to investors under Clauses 1, 2 and 4, Article 5 of Decree No. 124/2017/ND-CP and this Circular. For investors who are required to perform procedures for approving pre-investment outbound transfer of foreign currency amounts at the State Bank, credit institutions may transfer foreign currency amounts abroad to investors only after the latter produce the State Bank’s written approval.

4. To transfer abroad investment capital for petroleum activities at the request of investors only after being granted offshore investment registration certificates and only when the investors produce the State Bank’s written certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities under Chapter IV of this Circular.

5. To request investors to provide appropriate documents for checking in order to ensure that transactions of pre-investment outbound transfer of foreign-currency amounts are conducted for the purposes prescribed in Clauses 1 and 4, Article 5 of Decree No. 124/2017/ND-CP.

6. To consider, check and archive papers and documents according to actual transactions in order to ensure that foreign exchange services are provided to investors for proper purposes and in accordance with law.

7. To certify investors’ accounts and amounts transferred outbound before the grant of offshore investment registration certificates, the balance on pre-investment foreign-currency accounts transferred into investment capital accounts, the opening of investment capital accounts, the balance on investment capital accounts, the money amounts transferred outbound and the amounts transferred back to Vietnam by the time the change occurs as a basis for the State Bank to certify registration of foreign exchange transactions or registration of change of foreign exchange transactions related to offshore investment in petroleum activities.

8. To comply with the reporting regime specified in Chapter VII of this Circular and relevant laws.

Article 19. Responsibilities of the State Bank’s units

1. Responsibilities of the State Bank’s provincial-level branches

a/ To certify investors’ registration or registration ofchange of foreign exchange transactions related to offshore investment in petroleum activities in localities under Chapter IV of this Circular;

b/ To monitor, make statistics of, and summarize, the offshore investment of capital in petroleum activities by investors in localities for reporting such to the State Bank under Chapter VII of this Circular;

c/ To supervise and inspect the observance of current regulations on foreign exchange management by investors in localities;

d/ To send copies of the following documents to the State Bank (the Foreign Exchange Management Department) for coordinated management within 5 (five) working days after the documents are signed:

(i) Written certifications of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities;

(ii) Documents invalidating the written certifications of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities.

2. Responsibilities of the Foreign Exchange Management Department

a/ To assume the prime responsibility for, and coordinate with related units of the State Bank in, handling matters related to offshore investment in petroleum activities prescribed in this Circular;

b/ To process investors’ dossiers of request for approval of outbound transfer of foreign currencies before obtaining offshore investment registration certificates prescribed in Article 7 of Decree No. 124/2017/ND-CP.

Chapter VII

REPORTING REGIME

Article 20. Reporting by licensed credit institutions

1. By the 10^thof the month following the month when arise transactions of pre-investment outbound or inbound transfer of foreign currency amounts on investors’ pre-investment foreign-currency accounts, licensed credit institutions where investors open pre-investment foreign-currency accounts shall report in writing to the State Bank (the Foreign Exchange Management Department) on transactions via pre-investment foreign-currency accounts (made according to the form provided in Appendix 7 to this Circular).

2. Licensed credit institutions where investors open their investment capital accounts shall send reports on collection and payment transactions via such accounts under the State Bank’s current regulations on reporting and statistical regime applicable to credit institutions and foreign bank branches.

Article 21. Reporting by investors

By the 5^thof the first month of the quarter following the quarter when arise transactions of outbound or inbound transfer of foreign currency amounts on investors’ pre-investment foreign-currency accounts, investors that are required to carry out procedures for obtaining the State Bank’s approval of pre-investment outbound transfer of foreign currency amounts shall make a report on pre-investment outbound transfer of foreign currency amounts (according to the form provided in Appendix No. 8 to this Circular) for every project and send such report to the State Bank (the Foreign Exchange Management Department).

2. Every quarter (by the 5^thof the first month of the quarter following the reporting quarter), investors shall make a report on outbound transfer of investment capital for petroleum activities (according to the form provided in Appendix No. 9 to this Circular) for every project for which the offshore investment registration certificate has been granted by a competent agency and send such report to the State Bank’s provincial-level branches of localities where institutional investors are headquartered or individual investors register permanent residence.

Article 22. Reporting by the State Bank’s provincial-level branches

The State Bank’s provincial-level branches shall send reports on the certification of registration or registration of change of foreign exchange transactions related to offshore investment in petroleum activities and the outbound transfer of investment capital by investors in localities under the State Bank’s current regulations on reporting and statistical regime applicable to the State Bank’s provincial-level branches.

Article 23. Requests for extraordinary reports

In extraordinary cases or when necessary, investors, licensed credit institutions and the State Bank’s provincial-level branches shall make reports at the request of the State Bank.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 24.Effect

1. This Circular takes effect on February 1, 2019, and replaces the State Bank’s Circular No. 36/2013/TT-NHNN of December 31, 2013, providing the opening and use of foreign currency accounts for making offshore direct investment.

2. To annul Clause 2, Article 28 of the State Bank’s Circular No. 12/2016/TT-NHNN of June 29, 2016, guiding the foreign exchange management of offshore investment activities.

3. Cases in which the State Bank has certified registration of pre-investment outbound transfer of foreign currencies, registration of accounts as well as schedule of outbound transfer of investment capital under Circular No. 36/2013/TT-NHNN must comply with the State Bank’s written certification.

Article 25. Organization of implementation

The Chief of the Office, the Director of the Foreign Exchange Management Department and heads of related units of the State Bank, directors of the State Banks’s provincial-level branches, chairpersons of Boards of Directors or Members’ Councils, and directors general (directors) of licensed credit institutions shall organize the implementation of this Circular.-

For the State Bank Governor
Deputy Governor
NGUYEN THI HONG

* The appendices to this Circular are not translated.