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THE
STATE BANK
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
05/2001/TT-NHNN
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Hanoi,
May 31, 2001
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CIRCULAR
GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION
No. 61/2001/QD-TTg OF APRIL 25, 2001 ON THE ORGANIZATION-RESIDENTS’ OBLIGATION
TO SELL AND RIGHT TO BUY FOREIGN CURRENCIES
On April 25, 2001, the Prime Minister issued
Decision No.61/2001/QD-TTg on the organization-residents’ obligation to sell and
right to buy foreign currencies. Pursuant to Clause 3, Article 6 of this
Decision, the State Bank of Vietnam hereby guides the implementation thereof as
follows:
Chapter I
GENERAL PROVISIONS
Section 1. INTERPRETATION OF
TERMS
In this Circular, the following terms and
expressions shall be construed as follows:
1. Current revenue sources are foreign currency
revenue sources earned by residents from current transactions between residents
and non-residents (as specified in Appendix 3 to the State Bank’s Circular
No.01/1999/TT-NHNN7 of April 16, 1999).
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3. Financial donations and aids are
non-refundable ones provided by non-residents to residents.
4. Foreign currency purchase and sale are the
use of Vietnam dong to buy foreign currencies or the sale of foreign currencies
for Vietnam dong between licensed banks and organization-residents.
Section 2. SUBJECTS OF
APPLICATION
Subject to this Circular are:
1. Vietnamese economic organizations,
foreign-invested enterprises and foreign parties to business cooperation contracts,
branches of foreign companies, foreign contractors and contractors joining
partnerships with foreign parties (hereinafter referred collectively to as
economic organizations).
2. State agencies, armed force units, political
organizations, socio-political organizations, social organizations,
socio-professional organizations, social funds and charity funds of Vietnam
(hereinafter referred collectively to as social organizations).
3. Licensed banks (hereinafter called banks).
Chapter II
SPECIFIC PROVISIONS
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1. Subjects liable to sell foreign currencies
and foreign currency selling percentage:
a/ For subjects being economic organizations:
They shall have to immediately sell to banks at least 40% of their foreign
currency amounts earned from current revenue sources.
b/ For subjects being social organizations: They
shall have to immediately sell to banks 100% of their foreign currency amounts
earned from current revenue sources.
Subjects being economic organizations and social
organizations mentioned at Points a and b above shall hereinafter be
collectively referred to as "organizations".
2. Procedures for selling foreign currencies:
2.1. For organizations’ foreign currency revenue
sources already determined as current revenue sources subject to the obligatory
sale:
a/ When foreign currency amounts are credited
into their accounts, and the organizations have the demand to immediately sell
such foreign currencies according to the prescribed percentage to banks where
they open foreign currency deposit accounts, the banks shall have to
immediately buy such foreign currency amounts;
b/ When foreign currency amounts are credited
into their accounts, and the organizations does not need to immediately sell
foreign currencies, the banks where the organizations open accounts shall
immediately deduct and transfer foreign currency amounts subject to the
compulsory sale according to the prescribed percentage from foreign currency
deposit accounts to accounts "money in safe-keeping and awaiting
settlement", and at the same time, notify such to the organizations, so
that the latter carry out the procedures for selling foreign currencies. Within
3 working days after the foreign currency amounts are credited into foreign
currency deposit accounts, the banks and organizations shall have to perform
the obligation to buy and/or sell foreign currencies according to the
percentage prescribed in this Circular.
c/ In cases where an organization wishes to sell
its foreign currency amount subject to the obligatory sale to a bank other than
the bank where it opens account, such organization shall have to produce the
signed foreign currency purchase and sale contract to the bank where it has
opened account before or on the date when its foreign currency amount is
credited into its account. The bank where its account is opened shall base
itself on the foreign currency purchase and sale contract to transfer such
foreign currency amount to the bank which has signed the foreign currency
purchase contract. The latter shall have to immediately buy such foreign
currency amount.
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2.2. For organizations’ foreign currency revenue
sources not yet determined as current revenue sources subject to the obligatory
sale:
a/ When foreign currency amounts, which have not
yet been determined by the banks as current revenue sources subject to the
compulsory sale, are credited into organizations’ foreign currency deposit
accounts, the banks shall immediately deduct and transfer 40% of foreign
currency amounts, for economic organizations or 100% for social organizations,
to the account "money in safe-keeping and awaiting settlement", and
at the same time notify such to the organizations;
b/ Within 3 working days after the foreign
currency amounts are deducted and transferred into the account "money in
safe-keeping and awaiting settlement", if organizations can produce to the
banks valid papers evidencing that their foreign-currency revenue sources are
not subject to the compulsory sale according to the provisions of Clause 2,
Section 2, Chapter II of this Circular, the banks shall have to immediately
deduct and return the foreign currency amounts from the account "money in
safe-keeping and awaiting settlement" to foreign currency deposit accounts
of organizations.
c/ Past 3 working days after foreign currency
amounts are deducted and transferred to the account "money in safe-keeping
and awaiting settlement", if organizations still fail to prove that such
foreign currency amounts constitute current revenue source not subject to the
compulsory sale or deliberately shirk the obligation to sell foreign currencies
according to the prescribed percentage, the foreign currency purchase and sale
between the banks and organizations shall be effected according to the
provisions of Items c and d, Clause 2.1, Section 1 of this Chapter.
2.3. The banks shall have to pay foreign
currency interests on foreign currency amounts already deducted and transferred
from the foreign currency deposit account to the account "money in
safe-keeping and awaiting settlement" according to the regulations of the
bank where such account is opened.
2.4. When performing the obligation to sell
foreign currencies from their current revenue sources according to the provisions
of this Circular, organizations may retain a minimum foreign currency amount to
maintain their foreign currency deposit accounts according to the regulations
of the bank where such accounts are opened.
3. Modes of foreign currency purchase and sale:
3.1. Foreign currency purchase and sale with
immediate delivery (Spot): Spot transactions shall be effected between banks
and organizations within 3 days after foreign currency amounts are credited
into organizations’ foreign currency deposit accounts.
3.2. Term foreign currency purchase and sale
(Forward):
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b/ Regarding contracts for purchase and sale of
foreign currencies from current revenue sources subject to the compulsory sale
according to the provisions of agreements signed between banks and
organizations before the effective date of this Circular, the organizations
shall have to immediately sell their foreign currency amounts to banks
according to the prescribed percentage as soon as such foreign currency amounts
are credited into their foreign currency accounts.
Section 2. CURRENT REVENUE
SOURCES NOT SUBJECT TO THE OBLIGATORY SALE OF FOREIGN CURRENCIES TO BANKS
1. Current revenue sources not subject to the
obligatory sale of foreign currencies:
a/ Revenues from financial donations and
non-refundable aids under the agreements between residents and donors;
b/ Revenues of parties undertaking entrusted
exportation under entrusted export contracts. In these cases, the entrustors
shall still have to perform the obligation to sell foreign currencies to banks;
c/ Revenues from the temporary import for
re-export under goods sale/purchase contracts signed with foreign countries.
Particularly for the revenue from price differences in foreign currencies
arising from such operation, the obligation to sell foreign currencies to banks
must be performed;
d/ Revenues from deposits and collateral by
non-residents and revenues collected on behalf of non-residents;
e/ Foreign currencies of economic organizations,
which are transferred into Vietnam by overseas Vietnamese or foreigners in
order to help their families or next of kin or for other charity purposes, to
be received under the State Bank’s permission;
f/ Current revenue sources not subject to
compulsory sale under the Prime Minister’s decisions.
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a/ For Point 1 (a): The agreement on financial
donation or non-refundable aid signed with the donor or papers related to aid
or financial donation source;
b/ For Point 1 (b): The entrusted export
contract signed between the entrustor and entrustee;
c/ For Point 1 (c): The contract for temporary
import for re-export, signed between the parties, and the Trade Ministry’s
written permission for provision of temporary import and re-export services for
such kind of goods;
d/ For Point 1 (d): The contract for goods and
service purchase and sale that contains provisions on deposit or collateral;
and the agreement on authorized collection between organization-residents and
non-residents;
e/ For Point 1 (e): Vietnam State Bank’s permit
for the economic organization to provide service of receiving and delivering
foreign currencies transferred by overseas Vietnamese and foreigners into
Vietnam;
f/ For Point 1 (f): The Prime Minister’s
decision permitting the non-performance of the obligation to sell foreign
currencies.
Papers and vouchers evidencing cases not subject
to the compulsory sale of foreign currencies must be the originals or notarized
copies. In cases where the notary public refuses to make notarization, banks
may request organizations to produce the originals or copies affixed with
written certification and seals of such organizations. The written
certification must state that the content of copies and that of the original
are the same. Organizations shall be held responsible before law for errors
and/or omissions. For a paper or voucher with many pages, the concerned
organization must inscribe its certification on each page.
Section 3. ORGANIZATIONS’
RIGHT TO BUY FOREIGN CURRENCIES
1. The right to buy foreign currencies
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b/ Residents being foreign-invested enterprises
and foreign parties to business cooperation contracts, when having the demand for
foreign currencies to meet the requirements of their current transactions,
capital transactions and other licensed transactions, shall be entitled to buy
foreign currencies from banks, provided that they can produce valid papers and
vouchers.
c/ For residents being foreign-invested
enterprises and foreign parties to business cooperation contracts, that invest
in particularly important projects under the Government’s programs, the Prime
Minister shall consider and decide the foreign currency balance for each
project. Banks shall have to satisfy the foreign currency demands of
foreign-invested enterprises and foreign parties to business cooperation
contracts, for which the foreign currency balance shall be ensured as already
decided by the Prime Minister. In cases where their existing foreign currency
sources are not enough to satisfy the demands, they shall report such to the
State Bank for supplement to foreign currency sources.
d/ Residents being foreign-invested enterprises
and foreign parties to business cooperation contracts that invest in
infrastructure construction projects or other important projects shall be
considered and decided by the Prime Minister to have their foreign currency
balance ensured on the basis of the proposal of the Vietnam State Bank Governor
when banks are incapable of satisfying their foreign currency demands.
2. Papers necessary for the purchase of foreign
currencies:
When buying foreign currencies to meet
requirements of their current transactions, capital transactions or other
licensed transactions, organizations shall have to produce to banks the
following valid papers and vouchers for each kind of transaction:
a/ For payment for import of foreign goods
and/or services: The contract for import of foreign goods and/or services; the
Prime Minister’s import permit (for goods items on the list of goods banned
from import), or permit or quota of the Trade Ministry or a specialized
managing ministry (for the import of goods items on the list of goods subject
to conditional import), the establishing decision, the business registration,
the complete set of vouchers including letter of credit (if any), invoice, bill
of lading and vouchers related to the import of goods and/or services.
b/ For payment for entrusted export or import of
goods and/or services to the party undertaking the entrusted export or import:
The export or import entrustment contract and vouchers related to entrusted
export or import.
c/ For refund of compensations related to export
of goods and/or services: The goods and service export contract, payment
notice, written complaint, written record and papers related to the settlement
of a dispute or complaint.
d/ For transfer of deposits for overseas
bidding: The relevant contract(s), papers and vouchers related to the overseas
bidding.
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f/ For expenses related to charges and
expenditures for the setting up and operation of representative offices abroad:
The competent agency’s approval permitting the setting up of offices abroad and
papers related to the payment of assorted charges and expenditures of such
offices.
g/ For expenses related to the registration of
trademarks, use copyright over invention patents, consultancy services: The
relevant contract and papers related to the payment to foreign countries.
h/ For expenses related to the sending of
individuals working in organizations abroad for work, study, survey,
symposiums, ...: The competent agencies’ papers permitting such individuals to
go abroad and papers related to the payments abroad and other relevant papers.
i/ For repayment of principals, interests and
charges for foreign loans: The capital borrowing contract already approved and
other relevant papers.
j/ For transfer of foreign currencies abroad by
foreign-invested enterprises and foreign parties to business cooperation
contracts: Depending on each foreign currency use purpose, the papers
prescribed in the State Bank’s Circular No.04/2001/TT-NHNN of May 18, 2001
guiding the foreign exchange management applicable to foreign-invested
enterprises and foreign parties to business cooperation contracts must be
produced.
k/ For other current transactions and licensed
transactions, the banks shall specify vouchers required for the purchase of
foreign currencies on case-by-case basis.
Papers and vouchers submitted to banks for
buying foreign currencies must be the originals or notarized copies. In cases
where the notary public refuses to make notarization, banks may request
organizations to produce the originals or copies affixed with written
certification and seals of such organizations. The written certification must
state that the content of copies and that of the original are the same.
Organizations shall be held responsible before law for any errors. For a paper
or voucher with many pages, the concerned organization must inscribe its
certification on each page.
Section 4. RESPONSIBILITIES
OF BANKS
Banks, when buying or selling foreign currencies
with organizations according to the provisions of this Circular, shall have to
strictly observe the following regulations:
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2. To meet the organizations’ foreign currency
demands in compliance with the provisions in Section 3, Chapter II of this
Circular and in compatibility with the actual value that must be paid by the
organizations. Particularly, the sale of foreign currencies for payment for
capital transactions shall comply with the current regulations.
3. To post up the buying and selling rates
according to Vietnam State Bank’s regulations. The posting up of exchange rates
shall be considered a commitment on foreign currency transaction with
organizations;
4. Daily, to report to Vietnam State Bank (the
Foreign Exchange Management Department) on exact foreign currency amounts
bought and sold in the day, to maintain the foreign exchange status or Vietnam
dong status, conduct the foreign currency purchase and/or sale with
organizations, other banks and Vietnam State Bank on the inter-bank foreign
currency market in order to meet organizations’ foreign currency demands and to
maintain the day-end foreign exchange status according to Vietnam State Bank’s
regulations;
5. Monthly, to fully report to Vietnam State
Bank (the Foreign Exchange Management Department) on the situation of buying
and selling foreign currencies with organizations in the month on the 5th day
of the following month at the latest.
6. Upon detecting acts committed by other banks
or organizations violating the provisions of this Circular, to promptly report
them to Vietnam State Bank for application of handling measures.
Section 5. RESPONSIBILITIES
OF ORGANIZATIONS
1. To strictly perform the sale of foreign
currencies according to the provisions of this Circular.
2. To produce all papers and vouchers as prescribed
and at justifiable requests of banks;
3. To make truthful declarations according to
the provisions of this Circular.
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Section 6. HANDLING OF
VIOLATIONS
Banks and organizations that commit acts of
violating the provisions of this Circular shall, depending on the seriousness
of their violations, be handled according to the current regulations on
sanctioning administrative violations in the banking and monetary field or
other provisions of law.
Chapter III
IMPLEMENTATION
PROVISIONS
1. This Circular takes effect 15 days after its
signing and replaces documents previously promulgated by the State Bank,
including:
Vietnam State Bank’s Circular
No.08/1998/TT-NHNN7 of September 30, 1998 guiding the implementation of the
Prime Minister’s Decision No.173/1998/QD-TTg of September 12, 1998; the State
Bank Governor’s Decision No.418/1998/QD-NHNN7 of December 11, 1998 amending and
supplementing a number of points of Circular No.08/1998/TT-NHNN7 of September
30, 1998 and Decision No.314/1999/QD-NHNN 7 of September 9, 1999 amending a
number of points of Decision No.418/1998/QD-NHNN7.
2. The heads of the Departments and Bureaus, the
director of the Office and the Chief Inspector of the State Bank, the directors
of the State Bank’s branches in the provinces and centrally-run cities, the
general directors (directors) of banks shall, within the ambit of their
functions and tasks, have to organize and guide the implementation of this
Circular.
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APPENDIX
NAME OF THE REPORTING BANK
REPORT ON PERFORMANCE OF FOREIGN CURRENCY
PURCHASE
Month........year.........
Date:
.................
To:
The State Bank of Vietnam
The Foreign Exchange Control
Department - Department of current transactions management
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1. The data Sheet:
Subjects
Total of foreign currency purchased
from the organizations in accordance with this Circular
Total of foreign currency sold
to the organizations in accordance with this Circular
Economic organizations
Social organizations
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2. Difficulties arising during the
implementation (if any)
GENERAL
DIRECTOR (DIRECTOR)
Sign and seal
Note:
The banks collect the data from
domestic branches, operation center in their system to report to the State Bank
of Vietnam.