VietnameseOfficial Dispatch No. 249/1998/CV-NHNN7 of March 21, 1998, re implementation of the Decision 37/1998/QD-TTg
ATTRIBUTE
Official Dispatch No. 249/1998/CV-NHNN7 of March 21, 1998, re implementation of the Decision 37/1998/QD-TTg
| Issuing body: | State Bank of Vietnam | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 249/1998/CV-NHNN7 | Signer: | Le Duc Thuy |
| Type: | Official Dispatch | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 21/03/1998 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Finance - Banking |
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STATE BANK OF VIETNAM | SOCIALIST REPUBLIC OF VIETNAM Independence Freedom Happiness |
No. 249/1998/CV-NHNN7 Re: Implementation of the Decision 37/1998/QD-TTg | Hanoi, March 21, 1998 |
To: | - Managers of State Bank branches in cities and provinces, - General Managers (Managers) of commercial banks authorised to engage in foreign exchange activities. |
Following the letter No. 157/1998/CVNHNN7 dated 23 February, 1998 of the State Bank guiding the implementation of Article 5 of the Decision 37 /1998/QD-TTg dated 14 February, 1998 of the Prime Minister, the Governor of the State Bank hereby requests the Directors of State Bank branches in cities and provinces, General Director (Director) of commercial banks and Bank for Investment and Development to continue providing guidance for implementation of the Decision 37/1998/QD-TTg on the following subjects:
I. OPERATING FOREIGN CURRENCY ACCOUNT.
1. Economic organisations, administrative agencies and social-political organisations of Vietnam shall be permitted to open foreign currency deposit account at banks authorised to engage in foreign exchange activities according to the provisions of this letter (hereinafter referred to as the Bank) and to serve their permitted transactions in foreign currency.
2. The foreign currency deposit account mentioned in the Decision 37/1998/QDTTg dated 14 February, 1998 of the Prime Minister is a foreign currency deposit account opened for one currency or different currencies (e.g. foreign currency deposit account in USD, DM,FRF,GDP,JPY). Economic organisations are permitted to open foreign currency account other than foreign currency deposit account such as borrowing account or cover account to serve their needs and according to the agreement and commitment between the Bank and its customers. Upon the accomplishment of the transaction, where the rights and obligations of the Bank and the customer have been fulfilled, these accounts shall be closed and all foreign currency deposit (if any) shall be consolidated in one foreign currency account at one bank. For the deposit account, the fund for special purposes of enterprises with foreign invested capital, the provisions of the Circular No. 02 TTNH7 dated 28 June, 1997 of the State Bank, shall continue to apply.
3. The account holder is authorised to use foreign currency on the account for the purposes stipulated under the Paragraph 1.5 of the Circular 12/TTNH7dated 05 September,1994of the State Bank, guiding the implementation of the Decision No. 396/QDTTg dated 04 Aug, 1994 of the Prime Minister.
4. Every organisation is principally permitted to open 1 (one) foreign currency deposit account at one bank operating in Vietnam. Besides the foreign currency deposit account opened by the head office and where necessary, the independent subsidiary of an organisation is permitted to open one foreign currency deposit account at the place where it is operating to serve their operations.
Procedures for opening and use of foreign currency account shall comply with the current regulations.
For the organisations having 2 or more foreign currency deposit accounts at different banks, if these accounts are not truly necessary for the operation according to their defined function and assignment, these organisations shall consolidate their foreign currency deposits into one account at one bank and close the other before the date of 01 April, 1998 according to the Decision No. 37/1998/QDTg dated 14 February, 1998 of the Prime Minister.
All organisations are requested to register their foreign currency accounts at present with the State Bank branches at the location where their head offices are located. The organisations who are holding 2 or more foreign currency deposit accounts at different banks and have to maintain these accounts to meet their function, assignment and commitment to the bank with regard to loans, covers, repayment, shall arrange for the registration on the operation of these accounts with the State Bank branches in provinces or cities where their head office is located. (The registration shall be made according to the exhibit attached). The 90/91 corporations shall also send a copy of the registration to the Foreign Exchange Control Department of the State Bank. The registration shall include the account number and details of the Bank where the account has been opened and the purpose of the accounts operation
The State Bank branches in provinces or cities shall be authorised to request the presentation of the relevant documents which can justify the real need of the accounts for consideration/reply.
The State Bank branches in provinces or cities shall be obligated to consider and process the registration in order to create most favourable condition for the operations (including the Bank) and for continuous, efficient and lawful development of organisations and at the same time to maintain the management and control over the foreign currency circulation and speculation in the economy.
In case where consent cannot be reached between the organisation and the State Bank branch on the maintenance of a certain foreign currency deposit account at a certain bank, the State Bank branch in charge shall on a provisional basis accept the request to maintain the foreign currency account by the organisation and report the case to the Central State Bank for advice and solution.
The organisation shall be authorised to maintain the registered foreign currency accounts if 10 days after the registration has been made, there is no response from the State Bank branches in provinces or cities.
On the 5th day of every month at the latest, organisations shall send report according to the exhibit attached, on the operation of the registered and authorised foreign currency accounts in the previous month to the State Bank branches in provinces or cities where the head offices is located. Further more the 90/91 corporations shall also send a copy of the report to the Foreign Exchange Control Department of the State Bank. In case of violation of the Regulation on reporting requirement by the organisations, the State Bank branch in charge shall be authorised to force the suspension of the foreign currency transaction or for the closure of the relevant foreign currency account of the organisations concerned.
On the 10th day of every month at the latest, the State Bank branches in provinces or cities shall make an aggregated report on the receipts/expenditures in foreign currencies handled via foreign currency accounts of enterprises located in their location to the Foreign Exchange Control Department of the Central State Bank. The Directors of the State Bank branches in provinces or cities shall be responsible to the Governor of the State Bank on the report and shall be imposed with administrative sanctions in case of violation of the reporting requirement.
II. SALE OF FOREIGN CURRENCY.
1. On the last day of every month, the organisations clearly mentioned in the Decision 37/1998/QDTTg 14 February, 1998 shall be obligated to sell to commercial banks their excess foreign currency amount (including the part which has been registered with the bank but not spent in full), after deducting the foreign currency demand of the following month.
2. The sale of foreign currency balance on the foreign currency account of organisations up to the bank 28 February, 1998 has been guided by the Despatch No.157/1998CV-NHNN7 dated 23 February, 1998 of the State Bank.
3. Those organisations, which receive foreign currency from the following sources, are not obliged to sell their foreign currency:
3.1. The legal capital contribution of the enterprises with foreign invested capital (FDI)
3.2. Foreign currency provided for the defined need of projects, which is financed by the Official Development Assistance (ODA).
3.3. Proceeds from foreign or local borrowings of enterprises which shall be used for payments in foreign currency.
3.4. Other foreign currency sources, which are kept in the foreign currency accounts at the banks for purposes like: security deposit, deposit and the allocation in foreign currency from the State Budget, foreign currency for current expenses of the Maritime, Airlines, Post and Telecommunication, Insurance sector; money collected by agent on behalf of foreign companies, money received for approved projects or from grant sources which shall be spent in foreign currency according to the approved budgets, insurance premium which are deposited by the employees working abroad through the labour management or labour export agencies.
The commercial banks shall report to the Foreign Exchange Control Department of the Central State Bank for advice if a consent between the bank and its customers on the sale of other foreign currency sources cannot be reached.
FOR THE GOVERNOR OF THE STATE BANK DEPUTY GOVERNOR Le Duc Thuy |
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