Decree No. 131/2005/ND-CP dated October 18, 2005 of the Government on amendment of and addition to a number of articles of Decree 63/1998/ND-CP dated August 17, 1998 of the Government on foreign exchange control

DECREE

ON AMENDMENT OF AND ADDITION TO A NUMBER OF ARTICLES OF DECREE 63/1998/ND-CP DATED 17 AUGUST 1998 OF THE GOVERNMENT ON FOREIGN EXCHANGE CONTROL

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated 25 December 2001;

Pursuant to the Law on State Bank of Vietnam 01/1997/QH10 dated 12 December 1997 and the Law on Amendment of and Addition to a number of articles of the Law on State Bank of Vietnam No. 10/2003/QH11 dated 17 June 2003;

On the proposal of the Governor of the State Bank of Vietnam

DECREES:

Article 1. To amend and add a number of articles to Decree 63-1998-ND-CP dated 17 August 1998 of the Government as follows:

1. Article 11.a shall be added to Chapter III (current transactions) as follows:

Article 11.a. Liberalization principle in current transactions.

In the territory of Vietnam, all payments and remittance of money with respect to current transactions shall be freely conducted.

2. Article 4.11 shall be amended and added to as follows:

11. Payment and remittance for international current transactions stipulated in this Decree comprises:

(a) Payments relating to export, import of goods, services, other current transactions, short term loans and credits from banks;

(b) Payments for net income from direct and indirect investments, depreciation from direct investment capital (if applicable);

(c) Payments for interest and gradual repayments of principal from foreign loans;

(d) One way payments for consumption and other similar purposes.

3. Article 14 shall be amended as follows:

Article 14. One-way remittance of money from Vietnam abroad in current transactions.

1. Residents and non-residents are permitted to purchase, transfer or carry personally abroad foreign currency for the purpose of payment of legal current transactions without presentation of relevant documents certifying discharge of tax obligations to the Vietnamese government.

2. Residents and non-residents being foreigners who have foreign currency are permitted to transfer [foreign currency] abroad upon demand. If they have legal sources of income in Vietnamese dong, they shall be permitted to purchase foreign currency from authorized banks to remit abroad.

3. Residents being Vietnamese citizens are permitted to purchase, transfer or carry personally abroad foreign currency for legal purposes such as tourism, study, medical treatment, subsidies for difficult situations, inheritance and permanent residency in accordance with regulations of the State Bank of Vietnam.

4. The Governor of the State Bank of Vietnam shall consider and approve cases of purchasing, transferring and carrying personally foreign currency beyond the level permitted (if any) on the basis of looking at dossiers and papers proving the necessity of the transactions.

Article 2. Implementing provisions

1. This Decree shall be of full force and effect 15 days from the date of its publication on the Official Gazette.

2. Ministers, the heads of ministerial equivalent bodies, heads of Government bodies and chairmen of Peoples Committee of provinces and cities under central authority shall be responsible for the implementation of this Decree.