|
THE STATE BANK
-------
|
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
------------
|
|
No:
218/2002/QD-NHNN
|
Hanoi, March 22, 2002
|
DECISION
PRESCRIBING THE PROCESS OF CONVERTING VIETNAM
DONG INTO US DOLLAR AND THE TRANSFER THEREOF ABROAD FOR PROJECTS GUARANTEED AND
UNDERTAKEN BY THE GOVERNMENT
THE STATE BANK GOVERNOR
Pursuant to Vietnam State Bank Law No.
01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s
Decree No. 15/CP of March 2, 1993 on the tasks, powers and managerial responsibility
of the ministries and ministerial-level agencies;
Pursuant to the Government’s
Decree No. 86/1999/ND-CP of August 30, 1999 on the management of the State’s foreign exchange reserves;
Pursuant to the Government’s
Decree No. 24/2000/ND-CP of July 31, 2000 detailing the implementation of the
Law on Foreign Investment in Vietnam;
At the proposal of the director of the Department for Foreign Exchange
Management,
DECIDES:
Article 1.- This Decision prescribes the process of
converting Vietnam dong into US dollar and the transfer thereof abroad for
projects guaranteed and undertaken by the Government.
Article 2.- In this Decision, the following terms shall be
construed as follows:
1. GGU means the Government’s Guaranty and Undertaking.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. The Vietnamese parties means enterprises set
up and operating in Vietnam, which consume products turned out by projects.
4. Investors means foreign investors who make
investment in the projects.
5. Converting banks means banks licensed to deal
in foreign exchange (licensed banks), which are selected by the investors to
effect the conversion of Vietnam dong into US dollar for the projects.
6. Turnovers means the amounts of money
collected from the sale of products and/or services turned out by the projects,
which are calculated in US dollar and paid in Vietnam dong.
7. Date of announcing exchange rates means the
day the converting banks announce the exchange rates between Vietnam dong and
US dollar to the investors as prescribed in the GGU of each project.
8. Forward exchange rates means the exchange
rates set by the converting banks with the maximum term of 9 working days.
9. Date of payment means the day the Vietnamese
parties transfer the Vietnam dong amounts to Account No. 1 of the investors and
the converting banks begin effecting transactions for the conversion of Vietnam
dong into US dollar. The payment date shall be fixed on a day after the date of
announcing the exchange rates, and the duration between these two dates shall
be two (02) working days at most.
10. Date of conversion means the day the
converting banks effect transactions for the conversion of Vietnam dong into US
dollar. The conversion date shall be fixed on a day after the payment date and
specified in the GGU of each project.
Article 3.- The investors may carry out transactions with
the converting banks to convert their Vietnam dong turnovers into US dollar and
transfer them abroad as prescribed in this Decision.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. The
first month: The investors provide products;
2. The
second month: On a given day of the second month (such date shall be
determined according to the provisions of the GGU of each project), the
investors shall have to notify the converting banks and the State Bank (the
Department for Foreign Exchange Management and the Transaction Bureau) of the
estimated US dollar amounts needed for the conversion of the previous month’s turnovers of the projects.
3. The third month: The month for converting
Vietnam dong into US dollar; the conversion shall take the following steps:
Step 1: By 12 a.m. of the date of announcing the
exchange rates at the latest, the converting banks shall announce the exchange
rates to the investors for them to make official payment receipts and to the
Vietnamese parties for them to effect the payment to the investors.
Step 2:
2.1. By 12 a.m. of the payment date at the
latest, the Vietnamese parties shall have to transfer an adequate Vietnam dong
amount to the investors Account No. 1 opened at the converting banks.
2.2. In cases where the converting banks have
enough US dollars to satisfy the investors conversion demand, they shall,
within the time limit prescribed in the GGU of each project, have to effect
transactions in order to convert the Vietnam dong amounts in Account No. 1
(after substracting Vietnam dong expenditures) into US dollar, after the
Vietnamese parties transfer the Vietnam dong amounts to Account No. 1 at the
exchange rates already announced by the converting banks.
2.3. In cases where the converting banks do not
have enough US dollars to satisfy the conversion demand of the investors as
their foreign currency situation does not permit on the date of payment, (after
the Vietnamese parties transfer the Vietnam dong amounts to Account No. 1 for
the investors), they shall send an official dispatch to the State Bank,
requesting the latter to sell them the deficit US dollar amounts for the above-mentioned
purposes. The dossiers to be sent to the State Bank (the Department for Foreign
Exchange Management and the Transaction Bureau) include:
- The application for the purchase of US dollar
to satisfy the conversion demand of the investors (according to Form 1);
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Step 3: Based on the provisions of the
Government’s Guaranty and
Undertaking (GGU), the foreign currency situation of the converting banks and
the provisions of this Decision, the Transaction Bureau shall, within five (05)
working days as from the date of payment, examine the necessary vouchers and
effect the sale of US dollar from the Exchange Rate and Gold Price
Stabilization Fund to the converting banks at the exchange rates already
announced by the converting banks (mentioned at Point 8, Article 2), to meet
the conversion demand of the investors.
Step 4: Within two (02) working days as from the
date of receiving the US dollar amounts purchased from the State Bank, the
converting banks shall base themselves on the Vietnam dong amounts left in
Account No. 1 after substracting the investors Vietnam dong expenditures to
convert such amounts into US dollar at the exchange rates inscribed in the
payment receipts and transfer them to Account No. 2.
Article 5.- When transferring the US dollar amounts from
Account No. 2 abroad as requested by the investors, the converting banks shall
have to control the periodical tax payment-certifying vouchers and other
vouchers prescribed in the GGU.
Article 6.- Responsibilities of the Transaction Bureau, the
Department for Foreign Exchange Management and the concerned departments of the
State Bank in monitoring and making reports after the conversion into US dollar
for the investors:
1. The
Transaction Bureau:
- To report to the State Bank Governor right
after effecting the sale of US dollars; and at the same time, notify the
Department for Foreign Exchange Management of the situation on sale of US
dollars from the Exchange Rate and Gold Price Stabilization Fund;
- To effect the transfer of US dollars from the
Foreign Exchange Reserve Fund to the Exchange Rate and Gold Price Stabilization
Fund under the Governor’s decisions once they
are approved by the Prime Minister;
- To keep records for monitoring the process of
selling US dollars under this Decision; make accounting and statistics for
monitoring with the following contents: Day, month, year; The US dollar amounts
already sold to the converting banks; the US dollar amounts transferred from
the Foreign Exchange Reserve Fund to the Exchange Rate and Gold Price
Stabilization Fund; and comply with the information supply and periodical
reporting regimes prescribed in Article 20 of the Regulation on organizing the
performance of the tasks of managing the State’s
foreign exchange reserves (issued together with Decision No. 653/2001/QD-NHNN
of May 17, 2001 of the State Bank Governor).
2. The
Department for Foreign Exchange Management:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- To determine the foreign currency situation of
the converting banks which apply for the purchase of US dollars to satisfy the
investors demand.
- To daft the reports to be submitted to the
State Bank Governor, who shall further submit them to the Prime Minister after
each transfer of US dollars from the Foreign Exchange Reserve Fund to the
Exchange Rate and Gold Price Stabilization Fund;
- Annually, by January 25 at the latest, to
submit to the State Bank Governor the reports on the sale of US dollars to the
investors under this Decision, which shall be submitted to the Prime Minister.
3. The
Accounting-Finance Department:
To coordinate with the Transaction Bureau in
accounting the arising operations related to the transfer of US dollars from
the Foreign Exchange Reserve Fund to the Exchange Rate and Gold Price
Stabilization Fund.
Article 7.- In cases of delayed payment due to the
Vietnamese parties�
faults, the investors shall send a complementary notice thereon to the
converting banks. The converting banks shall report the delayed payment to the
State Bank for monitoring and coordination in handling it. The process for US
dollar conversion applicable to cases of delayed payment shall comply with the
steps prescribed for the third month and the provisions in Article 4, Article 5
and Article 6 of this Decision.
Article 8.- By the 20th every month at the latest, the
converting banks shall have to report to the State Bank (the Department for
Foreign Exchange Management and Transaction Bureau) on the situation of selling
US dollars to the investors in the month; and at the same time, notify the
State Bank (the Department for Foreign Exchange Management and Transaction
Bureau) of the estimated US dollar amounts needed for conversion for the
investors in the subsequent month.
At every quarter-end, the converting banks shall
report to the State Bank (the Department for Foreign Exchange Management and
Transaction Bureau) the estimated US dollar demand of the investors in the
subsequent quarter and the plans on US dollar balance to satisfy that demand.
Article 9.- This Decision takes effect 15 days after its
signing.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Duong Thu Huong