THE
STATE BANK
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
998/2002/QD-NHNN
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Hanoi,
September 13, 2002
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DECISION
ON THE FOREIGN EXCHANGE MANAGEMENT OVER SECURITIES TRADING
BY FOREIGN ORGANIZATIONS AND INDIVIDUALS AT SECURITIES TRADING CENTERS
THE STATE BANK GOVERNOR
Pursuant to State Bank Law No.01/1997/QH10 of
December 12, 1997;
Pursuant to the Government’s Decree No.48/1998/ND-CP of July 11, 1998 on
securities and securities market;
Pursuant to the Prime Minister’s Decision No.139/1999/QD-TTg of June 10, 1999
on the rates of foreign parties participation in Vietnam’s securities market;
At the proposal of the director of the Foreign Exchange Management Department,
DECIDES:
Article 1.- Regulation
scope
Foreign exchange transactions related to the
purchase and/or sale of securities listed at securities trading centers by
foreign organizations and individuals, including the transfer of capital into
Vietnam for purchase and/or sale of securities, conversion of foreign
currencies into Vietnam dong, opening and use of Vietnam dong accounts for
purchase and/or sele of securities, conversion of Vietnam dong into foreign
currencies and transfer of foreign currencies overseas, shall be effected in
compliance with the provisions of this Decision and relevant provisions in
current documents on foreign exchange management.
Article 2.- Objects of
application
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1. Non-residents being organizations established
under foreign laws, foreigners (including both residents and non-residents),
non-residents being overseas Vietnamese.
2. Organizations and individuals being foreign
parties to foreign-invested enterprises in Vietnam that use divided profits or
other lawful incomes in Vietnam to purchase and/or sell securities at
securities trading centers.
In this Decision, the above-mentioned objects
shall be referred collectively to as foreign organizations and individuals.
Article 3.- Capital sources
for participating in securities purchase
Foreign organizations and individuals are
entitled to use the following capital sources to purchase securities:
1. Foreign currencies transferred from foreign
countries into Vietnam according to the current foreign exchange management
regulations;
2. Foreign currencies on foreign-currency
deposit accounts opened by foreign organizations and individuals mentioned in
Article 2 of this Decision at the banks licensed to conduct foreign exchange
business activities in Vietnam;
3. Profits divided to foreign organizations and
individuals from foreign direct investment activities in Vietnam;
4. Proceeds earned by foreign organizations and
individuals from the assignment, liquidation or dissolution related to foreign
direct investment activities in Vietnam according to the current regulations;
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6. Wages, bonuses and other lawful incomes of
foreign individuals in Vietnam in compliance with the current regulations.
Article 4.- Transfer of
capital into Vietnam for securities purchase
Foreign organizations and individuals that
transfer foreign currencies from foreign countries into Vietnam to purchase
securities shall have to sell such foreign currencies to the banks being
foreign custody members (hereinafter referred to as foreign custody members for
short) where foreign organizations and individuals open accounts for purchasing
and/or selling securities in Vietnam dong.
Article 5.- Securities
trading accounts
1. Opening of securities trading accounts in
Vietnam dong and securities custody accounts
Foreign organizations and individuals that wish
to purchase and/or sell securities listed at securities trading centers shall
have to open at a foreign custody member a securities trading account in
Vietnam dong and a securities custody account according to the provisions of
this Decision and current provisions of the securities and securities market
legislation.
2. Use of securities trading accounts in Vietnam
dong
Revenues:
a/ From the sale of foreign currencies to
foreign custody members;
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c/ From the account transfer from Vietnam-dong
accounts of such foreign organizations and individuals in Vietnam according to
the current foreign exchange management regulations (if any) into these
accounts for purchasing securities;
d/ From the securities sale;
e/ From dividends, bond yields and relevant
proceeds from the securities purchase and sale.
Expenditures:
a/ On the purchase of securities and expenses
relating to the securities trading;
b/ On the purchase of foreign currencies for
transfer overseas.
Article 6.- Purchase of
foreign currencies for transfer overseas
1. After fulfilling tax obligations according to
the provisions of Vietnamese laws, foreign organizations and individuals shall
be entitled to use Vietnam-dong sources in their securities trading accounts to
purchase foreign currencies from foreign custody members for transfer overseas.
2. Foreign organizations and individuals shall
only be entitled to transfer their investment capital (involved in capital
transactions) overseas one (01) year after such capital portion is remitted
into Vietnam-dong securities trading accounts opened at foreign custody
members, except for cases where it is so permitted by law.
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Article 7.- Regulations
on examination of vouchers
Foreign custody members, when performing revenue
or expenditure operations on securities trading deposit accounts for foreign
organizations and individuals, shall have to examine the following vouchers:
1. For revenue sources:
- For profits earned from direct investment in
Vietnam: Copies of investment licenses, written records of the managing boards
(or project executive boards, for business cooperation contracts) on the profit
division (or turnover division, for business cooperation contracts) with
certification by competent tax offices;
- For proceeds from the liquidation or
dissolution related to foreign direct investment activities in Vietnam:
Decisions on operation termination or dissolution of foreign-invested
enterprises or decisions on invalidation of business cooperation contracts,
written agreements of parties in enterprises (or those to business cooperation
contracts) on the asset liquidation, the competent tax offices written
certifications of fulfillment of financial obligations toward the Vietnamese
State (if collected amounts are larger than capital amounts initially
contributed);
- For case of capital transfer: Capital transfer
contracts already certified by the competent authorities, the competent tax
offices written certifications of fulfillment of financial obligations toward
the Vietnamese State (if the capital transfer yields profits);
- Revenues from the supply of goods or provision
of services: The competent tax offices written certifications of fulfillment of
financial obligations toward the Vietnamese State;
- Wages, bonuses, lawful incomes of individuals:
Depending on the nature of revenues, foreign organizations and individuals must
produce the following documents: wage table under labor contracts or
labor-employing agencies certifications of bonus amounts or competent
authorities written certifications of legality of other revenues (donations, gifts,
inheritance, lottery prizes, etc.)
2. For VND expenses for purchasing foreign
currencies for transfer overseas: The competent tax offices� written certifications of
fulfillment of financial obligations toward the Vietnamese State, for
investments from securities at the securities trading centers.
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Article 8.- Responsibilities
of foreign custody members
1. Selling foreign currencies: When foreign
organizations and individuals wish to purchase foreign currencies for transfer
overseas, foreign custody members shall, depending on the banks
foreign-currency sources, sell foreign currencies to such foreign organizations
and individuals in compliance with the current foreign exchange management
regulations.
2. Reporting: Monthly (By the 5th day of the
following month at the latest), foreign custody members shall have to report to
the State Bank (the Foreign Exchange Management Department) on:
a/ The situation of opening and closing
Vietnam-dong securities trading accounts by foreign organizations and
individuals at foreign custody members;
b/ The situation of operation of securities
trading accounts and the situation of purchasing foreign currencies from
foreign custody members for transfer overseas by foreign organizations and
individuals;
c/ The situation of operation of securities
custody accounts opened by foreign organizations and individuals at foreign
custody members.
In case of necessity, foreign custody members
shall have to supply information and report thereon at the State Bank’s
requests.
Article 9.- Implementation
provisions
1. This Decision takes effect 15 days after its
signing. The amendments and supplements to this Decision shall be decided by
the State Bank Governor.
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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Phung Khac Ke
Form No. 01
Foreign
Depositing Member
Address:
Fax:
Tel:
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REPORT ON THE OPEN, CLOSE OF SECURITIES TRANSACTION
ACCOUNT IN VND OF FOREIGN ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITING MEMBER
(report in month /20......., from ........ to ...........)
To:
The State Bank of Vietnam
(the foreign exchange control department)
Name
of account holder
Date
of opening account
Date
of closing account
Code
Nationality
Balance
I. Investment organization
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1.
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2.
3.
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Total
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II. Investment individual
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1.
2.
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3.
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Total
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III. Total
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Foreign Depository Member
DRAWER
CONTROLLER
DIRECTOR
Form No. 02
Foreign
Depositing Member
Address:
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Tel:
Bank .......
REPORT ON OPERATION OF SECURITIES TRANSACTION ACCOUNT AND
THE PURCHASE, SALE OF FOREIGN CURRENCY OF FOREIGN ORGANIZATION, INDIVIDUAL AT
FOREIGN DEPOSITORY MEMBER
(report
in month /20......., from ........ to ...........)
To:
The State Bank of Vietnam
(the foreign exchange control department)
Target
Organization
Individual
Total
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I. Beginning balance
II. Transactions in period
1. Receipts
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a. Receipts from foreign
remittance
b. Receipts from domestic
account transfer
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c. Gains from securities
transactions
d. Other receipts
Total
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2. Expenditures
a. Payment for securities
purchase
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b. Payment for the purchase
of foreign currency for remittance abroad
Total
III. Closing balance (III = I
+ II)
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B. The purchase, sale of
foreign currency between Foreign Depository Member and foreign organizations,
individuals (Unit: USD)
I. The purchase of foreign
currency
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1. From foreign remittance
2. Other sources
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II. The sale of foreign
currency for remittance abroad
Note:
- II. 1.c: Receipts from securities
transactions including gains from the sale of securities, receipt of dividends,
bond’s interests...... in cash.
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Foreign Depository Member
DRAWER
CONTROLLER
DIRECTOR
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Form No. 03
Foreign
Depositing Member
Address:
Fax:
Tel:
Bank .......
REPORT ON THE SECURITIES DEPOSITORY ACCOUNT OF FOREIGN
ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITORY MEMBER
(report
in month /20......., from ........ to ...........)
To:
The State Bank of Vietnam
(the foreign exchange control department)
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Depositing
securities
The
value of securities calculated in VND
I
Investment organization
1
- Share
2
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3
- Certificate of investment
funds
4
- Other securities
Total
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II
Investment individual
1
- Share
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- Bond
3
- Certificate of investment
funds
4
- Other securities
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III
Total (III = I + II)
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Note:
The value of securities calculated
in VND shall be calculated by the quantity of securities multiplies with the
closing price of those securities at the most recent transaction session by the
reporting time.
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Foreign Depository Member
DRAWER
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DIRECTOR