Integrated Document No. 06/VBHN-NHNN dated November 25, 2013 of the State Bank of Vietnam integrates the Decisions encouraging Vietnamese expatriates to transfer their money back to Vietnam

THE STATE BANK OF VIETNAM

Integrated Document No.06/VBHN-NHNN dated  November 25, 2013 of the State Bank of Vietnam integrates the Decisions encouraging Vietnamese expatriates to transfer their money back to Vietnam

The Prime Minister’s Decision No. 170/1999/QD-TTg dated August 19, 1999 on encouraging Vietnamese expatriates to transfer money back to Vietnam, which took effect from September 03, 1999, shall be amended and complemented by:

The Prime Minister’s Decision No. 78/2002/QD-TTg dated June 17, 2002 on amending and complementing the Prime Minister’s Decision No. 170/1999/QD-TTg dated August 19, 1999 on encouraging Vietnamese expatriates to transfer money back to Vietnam, which took effect from July 02, 2002.

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated September 30, 1992;

Pursuant to the Government’s Decree No. 63/1998/ND-CP dated August 17, 1998 on management of foreign exchange;

At the request of the Governor of the State bank of Vietnam1,

DECISION:

Article 1.The Government hereby encourages and provides assistance for Vietnamese expatriates to transfer their foreign currency back to Vietnam in accordance with the law of their home country and host country where they are settling, and from which they wish to transfer their money. 

Money transfer carried out by foreigners, who wish to make remittance to Vietnam for the purpose of giving financial support to their families, relatives or other charitable purposes, shall be also facilitated and conform to the regulations so applied to Vietnamese expatriates as stipulated by this Decision.

Article 2. INTERPRETATION OF TERMS

In this Decision, terms shall be construed as follows:

1. Foreign currency, as stipulated by this Decision, refers to a freely convertible foreign currency.

2. Beneficiary refers to a domestic resident who receives foreign currency sums remitted by Vietnamese expatriates, or foreigners from overseas countries to Vietnam.

3. Authorized credit institutions refer to Vietnam’s credit institutions which the State Bank permits to perform their foreign currency transactions.   

4. International postal remittance service providers refer to enterprises that have been granted the permit for their international postal remittance services by the General Post Department.   

5. International postal remittance services refer to different types of international postal transfer of cash and cheque.

Article 3.Application of International Agreements

Where International Agreements of which the Socialist Republic of Vietnam is a signatory or a participant lay down provisions pertaining to foreign currency transfer to Vietnam in contrast to those enshrined in this Decision, such foreign currency transfer shall be governed by provisions of these International Agreements.   

Article 4.Forms of foreign currency transfer to Vietnam 

Vietnamese expatriates and foreigners shall be entitled to transfer foreign currency to Vietnam in the following forms:

1. Foreign currency transfer carried out through authorized credit institutions;

2. Foreign currency transfer carried out through international postal remittance service providers;

3. Foreign currency carried along by individuals into Vietnam.

Overseas individuals who help Vietnamese expatriates carry foreign currency upon entry into Vietnam shall be required to make customs declarations of such amounts of foreign currency transferred back to Vietnam to domestic beneficiaries.

Article 5.Entities who are eligible to receive foreign currency that Vietnamese expatriates transfer and pay to domestic beneficiaries2

1. Authorized credit institutions.

2. International postal remittance service providers.

3. Economic organizations that have been granted the permit for foreign currency remittance service by the State Bank of Vietnam, or those that act as agents for credit institutions to make domestic foreign currency payment.

4. Credit institutions (including credit institutions that are permitted to perform foreign exchange activities and those that are not permitted to perform foreign exchange activities) that act as agents for economic organizations licensed to provide domestic foreign currency remittance and payment services.   

5. Credit institutions (including credit institutions that are permitted to perform foreign exchange activities and those that are not permitted to perform foreign exchange activities) that act as agents for authorized credit institutions. 

Article 6.Rights of beneficiaries

1. Receive sums in foreign currency or Vietnamese dong upon request.

2. On receipt of a foreign currency sum, beneficiaries can sell this sum to authorized credit institutions, make a deposit into personal foreign currency deposit accounts and can be used in accordance with applicable laws on foreign currency administration, and open saving accounts at authorized credit institutions or can be used for other purposes in accordance with Vietnam’s laws.     

3. Exempt the obligations to pay the tax on income earned from foreign currency amounts transferred from overseas countries.

Article 7.Responsibilities and powers of the State Bank

1. Cooperate with relevant Ministries and regulatory bodies in profound propagation of incentive policies on foreign currency transfer back to Vietnam.

2. Provide for conditions and procedures for granting a permit for foreign currency payment and remittance services; money transfer charges; direct organizations licensed to provide foreign currency payment and remittance services to simplify their documentation for the purpose of creating convenience for beneficiaries.

3. Grant permits to economic organizations eligible to provide foreign currency payment and remittance services, and revoke such permits or make a decision to temporary suspension to authorized credit institutions or economic organizations committing violations against provisions enshrined in this Decision.

Article 8.Responsibilities of relevant Ministries and regulatory bodies

1. Ministries and affiliates, governmental bodies and the People’s Committees of centrally-affiliated cities and provinces shall, within their permitted assumption of duties and exercise of powers, take responsibility for cooperating with the State Bank in state management of foreign currency remittance and payment.

2. The General Department of Taxation and Vietnam Post Incorporation shall be responsible for preparing the report on foreign currency transfer to Vietnam for submission to the State Bank which shall be then compiled into the general report to the Prime Minister.  Data analysis on foreign currency transfer to Vietnam shall be made on the quarterly basis and conform to regulations laid down by the State Bank.

Article 9.Violation settlement

Organizations or individuals in violation of regulations on foreign currency payment and remittance shall be subject to administrative penalties or criminal prosecutions, depending on the severity of such violations. Where these violations cause any loss or damage, legal regulations shall be applied.

Article 10.Implementation provisions3

1. This Decision shall come into force after 15 days from the signing date. To annul any previous regulations in contrast to this Decision.

2. The Governor of the State Bank shall assume responsibility for enforcing this Decision.

Ministries, Heads of ministerial-level agencies, Heads of Governmental agencies, the President of the People’s Committees of centrally-affiliated cities and provinces shall implement this Decision./.

Certification of Integrated Document

For the Governor

The Deputy Governor

Dang Thanh Binh

 1The introduction of the Prime Minister’s Decision No. 78/2002/QD-TTg dated June 17, 2002 on amending and complementing the Prime Minister’s Decision No. 170/1999/QD-TTg dated August 19, 1999 on encouraging Vietnamese expatriates to transfer money back to Vietnam, which took effect from July 02, 2002 is based on:

“The Law on Government Organization dated September 30, 1992;

The Government’s Decree No. 63/1998/ND-CP dated August 17, 1998 on management of foreign exchange;

The request of the Governor of the State bank of Vietnam,”

2This Article is amended in accordance with Article 1 of the Prime Minister’s Decision No. 78/2002/QD-TTg dated June 17, 2002 on amending and complementing the Prime Minister’s Decision No. 170/1999/QD-TTg dated August 19, 1999 on encouraging Vietnamese expatriates to transfer money back to Vietnam, which took effect from July 02, 2002.

3Article 2 of the Prime Minister’s Decision No. 78/2002/QD-TTg dated June 17, 2002 on amending and complementing the Prime Minister’s Decision No. 170/1999/QD-TTg dated August 19, 1999 on encouraging Vietnamese expatriates to transfer money back to Vietnam, which took effect from July 02, 2002, provides the following regulations:

“Article 2.Implementation provisions

1. This Decision takes effect after 15 days from the signing date. To annul any previous regulations in contrast to this Decision.

2. The Governor of the State Bank shall assume responsibility for enforcing this Decision.

Ministries, Heads of ministerial-level agencies, Heads of Governmental agencies, the President of the People’s Committees of centrally-affiliated cities and provinces shall be responsibility for implementing this Decision.”