Regulations on currency and banking to be in effect in mid-August

1. More individuals eligible for using bank cards

On June 30, 2016, the State Bank promulgated the Circular No. 19/2016/TT-NHNN, in effect on August 15, 2016, on bank card operations.
 
The range of eligible users of bank cards is expanded as follows:

- Primary card holders: Persons at the age of 15 to less than 18, who are not deprived or incapable of legal capacity and possess assets as a security of the implementation of their duties, are permitted to use debit cards without overdraft facility and prepaid cards.

- Supplementary cardholders: Persons at the age of 6 to less than 15, who are not deprived or incapable of legal capacity and are given permission by their legal representatives in writing for the use of bank cards, are permitted to use debit cards without overdraft facility and prepaid cards.

2. Outward portfolio investment instruments

On June 29, 2016, the State Bank promulgated the Circular No. 10/2016/TT-NHNN on guidelines for the Decree No. 135/2015/ND-CP on outward portfolio investment.

Proprietary traders and trustees shall be allowed to make outward portfolio investments into the following instruments:

+ Stocks listed on the stock market in a foreign country;

+ Certificates of securities investment funds;

+ Bonds, treasury bills and promissory notes that are issued by the government and organizations rated by international credit rating organizations: Standard & Poor's, Moody's Investors Service and Fitch Ratings.

Moreover, proprietary traders that are commercial banks and general finance enterprises must maintain the investment safety ratio at 7% of the self-financed equity, which does not include investments and business activities of their overseas branches.
 
Circular No. 10/2016/TT-NHNN shall come into force as of August 13, 2016.

3. Foreign credit institutions’ permissible purchase of corporate bonds in two forms

On August 15, 2016, the Circular No. 22/2016/TT-NHNN on the purchase of corporate bonds by credit institutions and foreign banks’ branches shall come into force.

Credit institutions and foreign banks’ branches shall be permitted to purchase corporate bonds in two forms:

- Bonds that are issued as per the laws on issuance of corporate bonds.

- Bonds that are issued as per the laws on public offering of securities (branches of foreign banks cannot purchase convertible bonds).

Furthermore, credit institutions and foreign banks’ branches shall not borrow money from other credit institutions or foreign banks' branches to purchase corporate bonds. Payments must be made in Vietnam Dong.

4. Limitation on foreign exchange agents’ sale of foreign currencies in cash

Circular No. 11/2016/TT-NHNN, in effect as of August 13, 2016, amends the provision of currency exchange services, activities of currency exchange agents and individuals’ currency exchange counters.

- Currency exchange agents can only use the currency of Vietnam to purchase foreign currencies from individuals and cannot sell a foreign currency in cash to individuals for the currency of Vietnam or other foreign currencies.

- Currency exchange agents in isolated waiting areas of international gateways can sell foreign currencies in cash for the currency of Vietnam to holders of passports defined in Article 8, Regulation on currency exchange agents under the Decision No. 21/2008/QD-NHNN dated July 11, 2008.