THE GOVERNMENT
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SOCIALIST REPUBLIC OF
VIET NAM
Independence - Freedom – Happiness
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No. 63/1998/ND-CP
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Hanoi, August 17, 1998
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DECREE
ON FOREIGN EXCHANGE MANAGEMENT
THE GOVERNMENT
In order to contribute to boosting the
economic growth, improving the balance of international payment, step by step
achieving the convertibility of Vietnam dong in foreign exchange transactions
and perfecting the foreign exchange management system of Vietnam;
Pursuant to the Law on Organization of the Government of September 30, 1992;
At the proposal of the Governor of the State Bank of Vietnam,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Objects and
scope of regulation
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2. In the Socialist Republic of Vietnam, all
foreign exchange transactions of organizations and individuals must comply with
the provisions of this Decree and other relevant provisions of law. Foreign
exchange shall be circulated only via the banking system, by organizations
and/or individuals licensed to carry out foreign exchange transactions.
3. Foreign exchange transactions in the border
areas and in export-processing zones shall comply with separate regulations of
the Prime Minister.
Article 2.- State
management over foreign exchange
1. The Government shall exercise uniform State
management over foreign exchange and foreign exchange transactions;
2. The Governor of the State Bank shall be
accountable to the Government for the State management over foreign exchange
and foreign exchange transactions;
3. The ministries, ministerial-level agencies,
agencies attached to the Government, People's Committees of the provinces and
cities directly under the Central Government shall, within their respective
tasks and powers, have to perform the State management over foreign exchange
and foreign exchange transactions.
Article 3.- Application
of international treaties, international practices and foreign laws in foreign
exchange transactions with foreign parties
1. In cases where an international treaty which the
Socialist Republic of Vietnam has signed or acceded to contains provisions
different from the provisions of this Decree, the provisions of such
international treaty shall apply.
2. In cases where it is not forfended by
Vietnamese law, parties involved in foreign exchange transactions with foreign
countries may agree on the application of international practices or foreign
laws, provided that such application does not cause any consequences damaging
the interests of Vietnam.
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In this Decree, the following terms shall be
construed as follows:
1. Foreign exchange shall include:
a/ Foreign currencies, including bank-notes and
coins;
b/ Instruments of payment in foreign currencies,
such as: checks, payment cards, bills of exchange, bank certificates of
deposit, postal certificates of deposit and other payment instruments;
c/ Papers of foreign currency value, such as:
Government bonds, corporate bonds, term bonds, shares and other valuable
papers;
d/ The special right to capital withdrawal, the
Euro (common European currency), and other common currencies used in
international and regional payment;
e/ Gold of international standard;
f/ The Socialist Republic of Vietnam's currency
being circulated if it is transferred in or out of the Vietnamese territory or
is used as an instrument of international payment.
2. Residents being organizations or individuals
shall include:
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b/ Foreign-invested enterprises and foreign
parties to business-cooperation contracts operating under the Law on Foreign
Investment in Vietnam; branches of foreign companies, foreign contractors,
Vietnamese contractors joining partnership with foreign ones and other
foreign-invested economic organizations doing business in Vietnam, not under
the Law on Foreign Investment in Vietnam;
c/ Vietnamese credit institutions, joint-venture
credit institutions, non-banking credit institutions with 100% foreign capital,
branches of foreign banks doing business in Vietnam (hereafter referred to as
credit institutions in Vietnam);
d/ Vietnamese State agencies, armed forces
units, political organizations, socio-political organizations, social
organizations, socio-professional organizations, social funds and charity funds,
which are operating in Vietnam;
e/ Vietnamese diplomatic missions, consulates,
representations of the armed forces, political organizations, socio-political
organizations, social organizations, socio-professional organizations, social
funds and charity funds operating overseas; Vietnamese citizens working in
these organizations and their dependents;
f/ Representative offices of Vietnamese economic
organizations, foreign-invested enterprises in Viet-nam and of Vietnamese
credit institutions operating overseas;
g/ Vietnamese citizens residing in Vietnam;
Vietnamese citizens residing abroad for less than 12 months;
h/ Foreigners residing in Vietnam for 12 months
or more;
i/ Vietnamese citizens going abroad for tourism,
study, medical treatment or visits (regardless of duration).
3. Non-residents being organizations or
individuals shall include:
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b/ Vietnamese economic organizations and
foreign-invested enterprises based in Vietnam doing business in foreign
countries;
c/ Vietnamese credit institutions and
Vietnam-based foreign credit institutions, which are set up and doing business
in foreign countries;
d/ Foreign State agencies, armed forces units,
political organizations, socio-political organizations, social organizations,
socio-professional organizations, social funds and charity funds, operating in
foreign countries;
e/ Foreign diplomatic missions, consulates and
representative offices of international organizations, inter-governmental
organizations, non-governmental organizations, armed forces and political
organizations, socio-political organizations, social organizations and
socio-professional organizations, operating in Vietnam; foreigners working in
these organizations and their dependents;
f/ Representative offices of foreign economic
organizations; representative offices of foreign credit institutions operating
in Vietnam;
g/ Foreigners residing abroad; foreigners
residing in Vietnam for a period of less than 12 months;
h/ Vietnamese citizens residing abroad for a
period of 12 months or more;
i/ Foreigners entering Vietnam for tourism,
study, medical treatment or visit (regardless of duration).
In cases where the involved organizations or
individuals have not yet been determined as residents or non-residents, the
decision thereon shall be made by the Governor of the State Bank.
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5. Foreign exchange rate means the value of a
foreign monetary unit calculated in Vietnam's monetary unit.
6. Foreign currency means the currency of a
foreign country or a common currency.
7. Foreign currencies in cash mean bank-notes,
metal coins, traveler's checks and other similar payment instruments in foreign
currencies as prescribed by law.
8. Gold of international standard means solid
gold, ingot gold, gold pieces and gold leaves stamped with the seal of quality
and weight control and with trade marks of international gold producers or
internationally recognized domestic gold producers.
9. Licensed bank means a bank in Vietnam which
is allowed by the State Bank to carry out foreign exchange transactions.
10. Foreign exchange desk means an organization
allowed by the State Bank to collect and exchange foreign currencies in cash.
Foreign exchange desks may be organized directly by the credit institutions
licensed to carry out foreign exchange transactions or by their authorized
agents.
11. Current transactions mean the transactions
between residents and non-residents regarding goods, services, incomes from
direct investment, incomes from investment in valuable papers, interests on
foreign loans and deposits, one-way money transfer and the similar transactions
as prescribed by law.
12. Current payment means conducting current
transaction revenues and expenditures.
13. Capital transactions mean the transactions
in the transfer of capital into Vietnam, transfer of capital from Vietnam abroad
in the fields of direct investment, investment in valuable papers, foreign
borrowings and payment of foreign debts, foreign loans and retrieval of foreign
loans, and other investment forms prescribed by Vietnamese law which increase
or reduce the credit assets or debit assets between the residents and
non-residents.
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15. Direct investment means foreign investors
bring capital in cash or in any kind of property into Vietnam to conduct
investment activities in accordance with the provisions of the Law on Foreign
Investment in Vietnam, or Vietnamese investors make their investment abroad in
cash or any property in order to conduct investment activities under the
investment legislation of Vietnam and relevant foreign country(ies).
16. Investment in valuable papers means
investment in shares, bonds, instruments of the monetary market and future
financial instruments issued in Vietnam or investment by residents in valuable
papers issued in foreign countries.
17. Foreign borrowings and payment of foreign
debts mean the residents borrow and pay debts to the non-residents in any form
of payment in foreign currencies.
18. Foreign loans and retrieval of foreign loans
means the residents grant loans and retrieve such loans from the non-residents
in any form of payment in foreign currencies.
19. Overseas accounts mean the residents'
accounts opened at banks operating outside the Vietnamese territory.
Chapter II
OPENING OF ACCOUNTS AND
USE OF FOREIGN CURRENCIES BY RESIDENTS AND NON-RESIDENTS
Article 5.- Opening
foreign currency accounts in the country and using foreign currencies on the
residents' accounts
1. Residents being organizations which have
sources of foreign currency revenues originated from current transactions,
capital transactions and other lawful sources, shall be entitled to open and
maintain their foreign currency accounts at the licensed banks and use foreign
currency(ies) available on their accounts for the following purposes:
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b/ Payment for goods and services to domestic
organizations and individuals that are allowed to collect foreign
currency(ies);
c/ Payment of domestic debts in foreign
currency(ies) and payment of foreign debts;
d/ Sale to credit institutions licensed to
conduct foreign exchange transactions;
e/ Investment in papers of foreign currency
value as prescribed by Vietnamese legislation on investment in securities and
other valuable papers;
f/ Conversion into payment instruments in
foreign currency(ies) as prescribed by law;
g/ Contribution of investment capital as
prescribed by the Law on Foreign Investment in Vietnam or investment in other
projects as prescribed by law;
h/ Transfer of foreign currency(ies) abroad in
accordance with the provisions of the Law on Foreign Investment in Vietnam and
other provisions of law;
i/ Transfer of foreign currency(ies) for
investment abroad in accordance with Vietnam's legislation on investment
abroad;
j/ Withdrawal of foreign currency(ies) in cash,
via-account transfer of foreign currency(ies) for payment to individuals who
work for the organizations and are sent abroad by such organizations; payment
of wages, rewards and allowances to residents and non-residents who are
foreigners working for such organizations.
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a/ Payment for goods and services provided by
foreign organizations and/or individuals in accordance with the provisions of
law;
b/ Payment for goods and services provided by
domestic organizations and/or individuals that are allowed to collect foreign
currency(ies);
c/ Transfer abroad for purposes prescribed in
Article 14 of this Decree;
d/ Sale to credit institutions licensed to
conduct foreign exchange transactions;
e/ Withdrawal of foreign currency(ies) in cash
for the purposes prescribed by law;
f/ Investment in papers of foreign currency
value in accordance with Vietnamese legislation on investment in securities and
other valuable papers;
g/ Conversion into other payment instruments in foreign
currency(ies) as prescribed by law;
h/ Donation, presentation, and inheritance as
prescribed by law;
i/ Residents being foreigners shall be allowed
to transfer abroad the amount of foreign currency(ies) available on their
foreign currency accounts in accordance with Vietnamese legislation on the
foreign exchange management.
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Article 6.- Opening
non-residents' foreign currency accounts in the country and using foreign
currency(ies) thereon
Non-residents having foreign currency(ies)
transferred from abroad into Vietnam via banks, bringing along foreign
currency(ies) when entering Vietnam with the border-gate customs' certification
or having other lawful sources of foreign currency revenue in Vietnam shall be
entitled to open and maintain foreign currency accounts (hereafter referred to
as non-residents' foreign currency accounts) at the licensed banks and use such
foreign currency(ies) available on their accounts for the following purposes:
1. Payment for goods and services provided by
foreign organizations and/or individuals;
2. Payment for goods and services provided by
domestic organizations and/or individuals, that are allowed to collect foreign
currency(ies);
3. Sale to credit institutions licensed to cary
out foreign exchange transactions;
4. Conversion into payment instruments in
foreign currency(ies) as prescribed by law;
5. Transfer abroad;
6. Withdrawal of foreign currency(ies) in cash,
via-account transfer for payment to individuals who work for organizations when
they are sent abroad by such organizations, payment of wages, rewards and
allowances to residents and non-residents who are foreigners working for
non-residents' organizations;
7. Withdrawal of foreign currency(ies) in cash
for other purposes as prescribed by law;
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9. Donation, presentation and inheritance as
prescribed by law.
Article 7.- Individuals'
right to use foreign currency(ies)
On the Vietnamese territory, residents or
non-residents being individuals who have foreign currency(ies) shall be
entitled to keep, bring along or deposit at banks and use foreign currency(ies)
in accordance with the provisions of Clauses 2 and 3, Articles 5 and 6 of this
Decree or sell to credit institutions and/or foreign exchange desks licensed to
conduct foreign exchange transactions, based on their voluntariness.
Article 8.- Opening
non-residents' Vietnam dong accounts in the country and using Vietnam dong
available thereon
Non-residents being organizations or individuals
that have Vietnam dong originated from foreign currency(ies) and other lawful
sources of revenue in Vietnam dong shall be entitled to open and maintain
Vietnam dong accounts (hereafter referred to as non-residents' Vietnam dong
accounts) at banks and to use the amount of Vietnam dong available on their
accounts for the following purposes:
1. Payment for goods and services provided by
domestic organizations and/or individuals;
2. Purchase of foreign currency(ies) and
transfer thereof abroad in accordance with the provisions of law;
3. Withdrawal of Vietnam dong in cash for
spending in Vietnam;
4. Transfer to other residents' and
non-residents' Vietnam dong accounts;
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Article 9.- Opening and
using residents' overseas accounts
1. Residents being Vietnamese economic
organizations, foreign-invested enterprises operating under the Law on Foreign
Investment in Vietnam, or credit institutions in Vietnam shall be granted
permits for the opening and use of overseas accounts, provided that they
operate and do business in the following fields and within the following
scopes:
a/ Conducting international business activities
in the fields of aviation, navigation, post, insurance, tourism, labor export
and construction of overseas projects;
b/ Receiving foreign loans and paying foreign
debts;
c/ Being allowed by the competent agency to open
overseas branches or representative offices;
d/ Being allowed to conduct foreign exchange
transactions abroad;
e/ Other cases permitted by the Prime Minister.
2. Residents being Vietnamese State agencies,
armed forces units, political organizations, socio-political organizations,
social organizations, socio-professional organizations, social funds and
charity funds operating in Vietnam shall be granted permits for the opening and
use of overseas foreign currency accounts, provided that they operate in the
following fields and within the following scopes:
a/ Receiving foreign loans and paying foreign
debts for the Government;
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c/ Other cases permitted by the Prime Minister.
3. Residents stipulated in Clauses 1 and 2 of
this Article shall be allowed to open overseas accounts and have to report to
the State Bank on the use of their overseas accounts. The opening, use and
closure of overseas accounts of these subjects must comply with the
prescriptions of the permits.
4. Residents being Vietnamese diplomatic
missions, consulates, representations of the armed forces, political
organizations, socio-political organizations, social organizations,
socio-professional organizations, social funds and charity funds or Vietnamese
citizens, while abroad, shall be entitled to open and use overseas foreign
currency accounts in accordance with the provisions of laws of the concerned
countries. Upon the termination of their operation or expiry of their stay
abroad, they shall have to close such accounts and transfer all the accounts' balance
back home. In case of a need to keep such balance abroad, the provisions of
Vietnamese law shall apply.
Article 10.- Management
of the opening and use of accounts in the country and abroad
1. The State Bank shall prescribe conditions and
procedures for the opening, use and closure of residents' and non-residents'
foreign currency accounts in the country as well as conditions and procedures
for the opening, use and closure of non-residents' Vietnam dong accounts in the
country.
2. The State Bank shall prescribe conditions and
procedures for the issue and withdrawal of permits for the opening of
residents' overseas accounts as mentioned in Clauses 1 and 2, Article 9 of this
Decree.
3. Banks shall have to open books to monitor and
balance residents' and non-residents' foreign currency accounts as well as
non-residents' Vietnam dong accounts in accordance with the stipulations of the
State Bank.
When opening accounts for their customers and
satisfying the account holders' demands, the banks shall all have to comply
with the provisions of this Decree and other provisions of law.
Chapter III
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Article 11.- Transfer
of foreign currency(ies) from current revenue sources back to Vietnam
Residents being organizations which have foreign
currencies originated from overseas current revenue sources shall have to
transfer all the amounts of foreign currency(ies) back to Vietnam in accordance
with the stipulations of the State Bank and deposit them in foreign currency
accounts opened at the licensed banks.
Article 12.- Obligation
to sell foreign currency(ies) of residents being organizations
Residents being Vietnamese economic
organizations, foreign-invested enterprises and foreign parties to business
cooperation contracts shall be supported by the Vietnamese Government in
balancing their foreign currency(ies); branches of foreign companies, foreign
contractors, Vietnamese contractors joining partnership with foreign ones,
State agencies, armed forces units, political organizations, socio-political organizations,
social organizations, socio-professional organizations, social funds and
charity funds of Vietnam shall have to sell the amounts of foreign
currency(ies) collected from current revenue sources to the licensed banks
according to the rates set by the Prime Minister in each period.
Article 13.- The
organizations' right to buy foreign currency(ies)
1. Residents being Vietnamese economic
organizations, branches of foreign companies, foreign contractors, Vietnamese
contractors joining partnership with foreign ones, credit institutions in
Vietnam, State agencies, armed forces units, political organizations,
socio-political organizations, social organizations, socio-professional
organizations, social funds and charity funds of Vietnam shall be entitled to
buy foreign currency(ies) at the licensed banks in order to meet the
requirements of current transactions or other permitted transactions, based on
the presentation of their valid papers and vouchers.
2. Residents being foreign-invested enterprises
and foreign parties to business cooperation contracts shall be entitled to buy
foreign currency(ies) at the licensed banks in order to meet the requirements
of current transactions or other permitted transactions in accordance with the
provisions of the legislation on foreign exchange management in the field of
foreign direct investment in Vietnam.
3. Non-residents being foreign diplomatic
missions, consulates, representative offices of international organizations,
inter-governmental organizations and non-governmental organizations, armed
forces and political organizations, socio-political organizations, social
organizations, socio-professional organizations of foreign countries,
representative offices of foreign economic organizations and foreign credit
institutions operating in Vietnam that have sources of revenue in Vietnam dong
from the visa issuance, other consular fees and lawful transactions shall be
entitled to buy foreign currency(ies) and transfer them abroad via licensed
banks, on the basis of the presentation of the relevant papers.
Article 14.- Purchase
and transfer of foreign currency(ies) by individuals
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2. Residents being foreigners working in
Vietnam-based organizations, who are paid wages, rewards, allowances and have
other lawful incomes in foreign currency(ies) shall be entitled to transfer or
bring such foreign currency(ies) abroad; if they are paid in Vietnam dong, they
shall be entitled to buy foreign currency(ies) at the licensed banks, on the
basis of the presentation of relevant vouchers and the certification of their
fulfillment of financial obligations as prescribed by law.
3. Non-residents being foreigners who have
lawful incomes in foreign currency(ies) shall be entitled to transfer or bring
abroad such currency(ies); if their incomes are in Vietnam dong, they shall be
entitled to buy foreign currency(ies) at the licensed banks on the basis of the
presentation of relevant vouchers and the certification of their fulfillment of
financial obligations as prescribed by law.
Article 15.- Carrying
foreign currency(ies) in cash, Vietnam dong in cash and gold of international
standard on entry or exit
1. Individuals, when on entry or exit through
Vietnam's border gates and carrying foreign currency(ies) in cash, Vietnam dong
in cash and/or gold of international standard with an amount exceeding the levels
prescribed by the Governor of the State Bank shall have to fill the procedures
for declaration with the border-gate customs.
Individuals, when on entry into Vietnam and
carrying gold of international standard with an amount exceeding the level
prescribed by the Governor of the State Bank, shall have to fill procedures for
depositing in the customs' warehouse the excess amount of gold of international
standard to be taken out of Vietnam when they are on exit or sold in accordance
with the stipulations of the State Bank.
2. Individuals, when on exit and carrying
foreign currency(ies) in cash, Vietnam dong in cash and/or gold of
international standard with an amount exceeding the amount already declared
with the customs when entering Vietnam or exceeding the level prescribed by the
Governor of the State Bank shall have to obtain permits from the State Bank.
3. The Governor of the State Bank shall
stipulate amounts of foreign currency(ies) in cash, Vietnam dong in cash and
gold of international standard allowed to be brought into or out of Vietnam on
one's entry or exit for each period of time.
Chapter IV
CAPITAL TRANSACTIONS
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Residents being organizations which have foreign
currency revenues from overseas capital transactions shall have to transfer
such amounts of foreign currency(ies) back to Vietnam and deposit them in
foreign currency accounts opened at the licensed banks; in cases where they are
retained abroad, the provisions of Vietnamese law shall apply. The sale of
foreign currency(ies) collected from capital transactions to the licensed banks
shall be effected on the basis of mutual agreement.
Article 17.- Management
of foreign loans and payment of foreign debts, granting loans to foreign
parties and retrieval of such loans
1. The Government shall exercise uniform State
management over activities related to foreign borrowings and payment of foreign
debts, loans granted to foreign parties and retrieval of such loans. The
management of foreign borrowings and payment of foreign debts, loans granted to
foreign parties and retrieval thereof shall comply with separate provisions of
law.
2. Residents being Vietnamese economic
organizations, foreign-invested enterprises and credit institutions in Vietnam,
when borrowing and paying foreign debts or lending and retrieving loans from
foreign parties shall have to make registration thereof with and report on the
use of the borrowed amounts to the State Bank in accordance with the provisions
of the legislation on the management of foreign debts and loans.
3. The transfer of money for borrowing and
paying foreign debts, lending and retrieving loans from foreign parties by
Vietnamese economic organizations, foreign-invested enterprises and credit
institutions in Vietnam must be effected via the licensed banks and only after
the registration thereof has been made with the State Bank.
Article 18.- Direct
investment
1. Direct investment in Vietnam
a/ Foreign investors are encouraged to transfer
investment capital in foreign currency(ies) from abroad into Vietnam in
accordance with the provisions of the Law on Foreign Investment in Vietnam.
b/ Foreign investment capital in cash must be
transferred into accounts opened at banks operating in Vietnam and used for the
purposes prescribed in the investment licenses already granted by the
Vietnamese competent agency.
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d/ Foreign investors shall be entitled to
transfer abroad foreign currency(ies) for the payment of foreign debts'
principals and interests, fees of foreign borrowings, investment capital,
re-investment capital, profits and other lawful incomes in accordance with the
provisions of the Law on Foreign Investment in Vietnam.
2. Direct investment abroad
a/ Vietnamese investors shall be entitled to
transfer capital abroad for investment in accordance with Vietnamese
legislation on investment in foreign countries. Capital in cash for overseas
investment must be transferred via bank accounts.
b/ Vietnamese investors' capital in cash and/or
property (tangible or intangible) for overseas investment must be registered with
the State Bank.
c/ At the end of a fiscal year or upon the
completion or termination of their investment in foreign country(ies),
Vietnamese investors shall have to transfer their whole profits and other
lawful incomes or capital back to Vietnam and report to the State Bank.
d/ In case where their profits are used for
re-investment abroad or their overseas investment durations extend, Vietnamese
investors shall have to register with the State Bank.
Article 19.- Investment
in valuable papers
1. Non-residents shall be entitled to invest in
papers of foreign currency value which are allowed to be issued in Vietnam. The
conditions and procedures for investment in valuable papers shall comply with
the provisions of the legislation on securities and other relevant provisions
of law.
2. When approved by the State Bank, the
residents may invest in papers of foreign currency value issued by
non-residents abroad.
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1. Residents being Vietnamese citizens allowed
to leave the country for permanent settlement abroad shall be entitled to buy,
transfer and bring along foreign currency(ies) and gold of international
standard in accordance with the provisions of law.
2. Non-residents being foreigners allowed to
enter Vietnam for permanent settlement shall be entitled to bring and/or
transfer into Vietnam foreign currency(ies) and gold of international standard
in accordance with the provisions of law. The use of foreign currency(ies) and
gold of international standards must comply with the provisions of this Decree
and the current relevant provisions of the legislation on foreign exchange
management.
Chapter V
FOREIGN EXCHANGE
TRANSACTIONS OF CREDIT INSTITUTIONS AND FOREIGN EXCHANGE DESKS
Article 21.- Issuance
of foreign exchange-transaction permits
The State Bank is competent to issue, amend,
extend and withdraw foreign exchange-transaction permits of credit institutions
and foreign exchange desks that act as agents for credit institutions allowed
to conduct foreign exchange transactions.
Article 22.- Scope of
foreign exchange transactions
When conducting foreign exchange transactions,
credit institutions and foreign exchange desks shall have to comply with the
permits' contents, the provisions of this Decree and other relevant provisions
of law.
Article 23.- Conditions
for being allowed to carry out foreign exchange transactions
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a/ Having sufficient equipment and material
bases to meet the requirements of foreign exchange transactions;
b/ Having managers and personnel with good
knowledge about foreign exchange transactions and capability to carry out them;
c/ Being capable of carrying out professional
operations in international payment and international credit.
2. For foreign exchange desks
a/ Having convenient locations for transactions
or places where foreign exchange demand exists;
b/ Having enough equipment and material bases to
meet the requirements of the exchange of foreign currency(ies) in cash;
c/ Having personnel with good knowledge about
cash-related transactions and capability to carry out currency exchange
operations;
d/ Having agency contracts with the credit
institutions licensed to conduct foreign exchange transactions, in cases where
they act as agents.
Article 24.- Lending
and retrieving domestic debts in foreign currency(ies)
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2. Loans in foreign currency(ies) shall be
retrieved in foreign currency(ies) or Vietnam dong as agreed upon by the credit
institution(s) conducting foreign exchange transactions and the borrowing
party(ies) (this stipulation shall not apply to foreign-invested enterprises
which have to balance their foreign currency(ies) needs by themselves).
Article 25.- Issue of
papers valued in foreign currency(ies)
Credit institutions conducting foreign exchange
transactions shall be allowed to issue or act as agents to issue certificates of
deposit, bonds and other papers valued in foreign currency(ies) in order to
mobilize capital from domestic and foreign organizations and individuals, if it
is so approved by the State Bank.
Article 26.- Import and
export of foreign currency(ies) in cash and papers valued in foreign
currency(ies)
Credit institutions conducting foreign exchange
transactions shall be entitled to import and/or export foreign currency(ies) in
cash and papers valued in foreign currency(ies) in service of their money
trading activities according to the permits granted by the State Bank.
Article 27.-
Maintaining the status of foreign exchange and Vietnam dong
Credit institutions licensed to conduct foreign
exchange transactions shall have to maintain the status of foreign exchange or
Vietnam dong in accordance with the stipulations of the State Bank.
Article 28.-
Responsibility of credit institutions conducting foreign exchange transactions
in posting up foreign exchange rates, buying and selling foreign currency(ies)
1. Credit institutions conducting foreign
exchange transactions shall have to post up the buying and selling rates of
foreign currency(ies) in accordance with the stipulations of the State Bank.
The posting up of foreign exchange rates shall serve as a foreign exchange
transaction commitment with the customers.
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Article 29.- Checking
vouchers
Credit institutions engaged in foreign exchange
transactions shall, when conducting foreign exchange transactions at the
customers' request, have to check papers and vouchers required by the actual
transactions in strict compliance with the provisions of this Decree and other
relevant provisions of the legislation on foreign exchange management.
Article 30.-
Inspection, supervision and reporting
Credit institutions engaged in foreign exchange
transactions and foreign exchange desks shall be subject to the inspection,
supervision and reporting regimes as prescribed by law.
Chapter VI
MANAGEMENT OF GOLD OF
INTERNATIONAL STANDARD
Article 31.- The State
Bank's tasks and powers in the management of gold of international standard
In the management of gold of international
standard, the State Bank shall have the following tasks and powers:
1. To elaborate and submit to the competent
agency(ies) legislative and other projects on the management of gold of
international standard, to issue, according to its competence, legal documents
on the management of gold of international standard;
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3. To organize and manage the domestic market of
international-standard gold;
4. To issue and/or withdraw
international-standard gold export-import permits to and/or from credit
institutions and enterprises licensed for gold trading;
5. To control the international-standard gold
trading activities of credit institutions and enterprises which are licensed to
trade in gold;
6. To examine and inspect the observance of law
provisions on the management of international-standard gold;
7. To buy and/or sell gold of international
standard on the domestic market, export and/or import gold of international
standard for the achievement of objectives of the national monetary policy; to
buy and/or sell gold of international standard on the international market and
conduct other international-standard gold transactions in accordance with the
provisions of law;
8. To perform other tasks and exercise other
powers on the management of international-standard gold in accordance with the
provisions of law.
Article 32.- Use of
international-standard gold
1. The State Bank shall be entitled to use gold
of international standard for:
a/ The State's foreign exchange reserve and
international payment;
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c/ Use for other purposes when permitted by the
Prime Minister.
2. Credit institutions and enterprises which are
licensed to trade in gold of international standard, shall be entitled to use
gold of international standard for:
a/ Purchase, sale and other transactions with
the State Bank, other credit institutions and enterprises, licensed to trade in
gold of international standard;
b/ Use for other purposes when permitted by the
Prime Minister.
3. Residents and non-residents who lawfully
possess gold of international standard shall be entitled to store, transport,
deposit and sell it to credit institutions and enterprises which are licensed
to trade in gold of international standard.
4. The sale and/or purchase of gold of
international standard on the domestic market beyond the scope provided for in
Clauses 1, 2 and 3 of this Article and the use of international-standard gold
to exchange or pay for cross-border goods and services in any forms shall be
strictly forbidden.
Article 33.- Management
of gold other than gold of international standard
The management of gold other than gold of
international standard shall comply with separate provisions of law.
Chapter VII
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Article 34.- Principles
for determining foreign exchange rates
Foreign exchange rates between Vietnam dong and
other foreign currencies shall be determined on the basis of the market demand
and supply of foreign currencies, with the State's regulation.
Article 35.-
Determining and announcing foreign exchange rates
The State Bank shall have to determine and
announce daily foreign exchange rates between Vietnam dong and a number of
foreign currencies.
Chapter VIII
INFORMATION-REPORTING
Article 36.- Supply of
information by organizations and individuals
Residents in Vietnam or abroad and non-residents
in Vietnam, who are engaged in foreign exchange transactions, shall have to
supply information and/or data upon the request of the State Bank in accordance
with the provisions of law.
Article 37.- Powers and
responsibilities of the State Bank and credit institutions
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2. The State Bank shall have to promulgate,
amend and supervise the observance of information-supplying and reporting
regulations, analyze and forecast information on the situation of foreign
exchange and foreign exchange transactions inside and outside the country in
order to serve the State's planning and running the work of foreign exchange
management.
The State Bank and credit institutions engaged
in foreign exchange transactions shall be entitled to exchange and provide
information on foreign exchange and foreign exchange transactions for
appropriate organizations and individuals in accordance with the provisions of
law.
All individuals working at the State Bank and
credit institutions shall have to keep secret and take responsibility for
information classified as branch secrets, which they receive, as prescribed by
this Decree.
Chapter IX
REWARDS AND HANDLING OF
VIOLATIONS
Article 38.- Reward
Organizations and/or individuals with
achievements in foreign exchange transactions, contributing to the development
of the national economy; detecting, denouncing and preventing acts of violation
of the legislation on foreign exchange and foreign exchange transactions, shall
be rewarded in accordance with the provisions of law.
Article 39.- Acts of
violation against foreign exchange and foreign exchange transactions
Acts of violation against foreign exchange and
foreign exchange transactions shall include:
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2. Conducting foreign exchange transactions even
after the suspension or termination thereof as well as the withdrawal or expiry
of foreign exchange transaction permits;
3. Opening and using foreign currency accounts
abroad without permission;
4. Depositing foreign currency(ies) in foreign
countries without permission or with amount exceeding the prescribed level;
5. Transferring or carrying foreign exchange
abroad, trading, paying and lending foreign exchange in contravention of the
regulations;
6. Failing to abide by the regulations on the
status of foreign exchange or Vietnam dong and/or on the posting up of foreign
exchange rates; buying, selling foreign currency(ies) not according to the
posted exchange rates;
7. Covering or conniving at acts of violation of
legislation on foreign exchange and foreign exchange transactions;
8. Other acts of violation of the legislation on
foreign exchange and foreign exchange transactions.
All organizations and individuals shall have to
detect and denounce acts of violation of the legislation on foreign exchange
and foreign exchange transactions.
Article 40.- Forms of
handling violations
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Article 41.- Competence
of the State Bank's inspectorate to handle administrative violations in the
field of foreign exchange and foreign exchange transactions
The State Bank's inspectorate shall have the
competence to handle administrative violations committed by organizations
and/or individuals in the field of foreign exchange and foreign exchange
transactions by imposing such forms of administrative sanctions as warning or
fine and additional sanctions as deprivation of the right to use permits,
confiscation of material evidences and means of administrative violations as
well as other measures provided for in the Ordinance on the Handling of
Administrative Violations of July 6, 1995.
Article 42.- Complaints
and/or lawsuits against decisions on the handling of administrative violations
1. Organizations and/or individuals handled for
their administrative violations in the field of foreign exchange and foreign
exchange transactions shall have the right to lodge complaints about decisions
on the handling of administrative violations to the competent State agency or
initiate lawsuits at courts. The complaint and/or litigation shall have to
comply with the provisions of law.
2. During the period of complaint or ligitation,
the organizations and/or individuals administratively sanctioned shall still
have to execute the decisions thereon. When a decision on the settlement of a
complaint has been issued by the competent State agency or a court judgment or
decision has taken its effect, such competent State agency's decision or court
judgment or decision shall apply.
Article 43.- Handling
of foreign exchange in temporary custody
Pending the issue of a handling decision by the
competent agency, the foreign exchange temporarily seized before the handling
must be preserved at the nearest bank within 7 (seven) working days from the
date it is put in the temporary custody. Foreign exchange confiscated under
decision of the competent State agency must be remitted into the State budget.
Chapter X
IMPLEMENTATION
PROVISIONS
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1. This Decree takes effect 15 days after its
signing.
2. This Decree replaces Decree No.161-HDBT of
October 18, 1988 of the Council of Ministers which promulgated the Regulation
on Foreign Exchange Management of the Socialist Republic of Vietnam.
The earlier regulations on foreign exchange
management which are contrary to the provisions of this Decree are now
annulled.
Article 45.-
Implementation of the Decree
The Governor of the State Bank of Vietnam shall
have to guide the implementation of this Decree.
The ministers, heads of the ministerial-level
agencies, heads of the agencies attached to the Government and presidents of
the People's Committees of the provinces and cities directly under the Central
Government shall have to implement this Decree.
ON BEHALF OF THE
GOVERNMENT
PRIME MINISTER
Phan Van Khai