THE STATE BANK | SOCIALIST REPUBLIC OF VIET NAM |
No. 02/TT-NH7 | Hanoi, June 28, 1997 |
On February 18, 1997, the Government issued Decree No. 12-CP detailing the implementation of the Law on Foreign Investment in Vietnam, the State Bank of Vietnam hereby provides the following guidance on the management of foreign exchange at foreign invested enterprises and foreign parties to business cooperation contracts:
1. This Circular shall apply to:
Foreign organizations and individuals licensed for production and business activities in Vietnam under the Law on Foreign Investment in Vietnam, including:
- Enterprises with 100 per cent foreign invested capital and joint ventures with foreign partners; hereafter referred to as foreign invested enterprises;
- Foreign parties to business cooperation contracts (BCC), hereafter referred to as foreign business cooperation parties;
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International credit activities, activities of Vietnam-based branches of foreign companies, other indirect investment and commercial organizations related to foreign exchange shall not come under the scope of regulation of this Circular.
II. OPENING AND USING ACCOUNTS AT THE BANKS OPERATING IN VIETNAM
- The foreign investors investment capital brought into and out of Vietnam;
- Principal of foreign loans brought into and out of Vietnam;
- Interests and fees of foreign loans brought out of Vietnam for the payment of foreign debts;
- Profits and other lawful incomes of the foreign investor transferred out of Vietnam;
- The enterprises capital amounts in foreign currency(ies) withdrawn from this account and put into a deposit account (for definite or indefinite terms);
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Within 10 (ten) days from the date the special account for foreign currency(ies) is opened, the foreign invested enterprise shall have to register it with the State Banks provincial/municipal branch of the same locality.
If the banks licensed to trade in foreign currencies in a locality cannot meet the banking service requirements of clients, the enterprise may open the special account for foreign currencies at a bank in another locality if it is so approved by the State Banks provincial/municipal branch in the locality where the enterprise has its head office and the enterprise shall have to register such account with the State Banks provincial/municipal branch in the locality where the enterprise opens such account.
III. OPENING AND USE OF FOREIGN CURRENCY ACCOUNTS ABROAD
- The foreign lenders request to open an account abroad for loan receiving and debt payment;
- Each capital borrowing contract shall have a minimum value of 3,000,000 USD (three million US dollars) or the equivalent in other foreign currencies;
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- The contract for borrowing foreign loans has been approved by the State Bank of Vietnam.
- Receiving loans in foreign currency(ies) from foreign lenders;
- Remitting part of the enterprise turnover which does not exceed the total amount of the principals of due loans and interests and fees thereon;
- Paying the principals of due loans, interests and fees thereon to foreign lenders;
- Paying foreign goods suppliers and service providers;
- An application for opening an overseas loan account;
- A paper introducing the full name, title and signature of the account holder or the authorized person. For a joint venture enterprise, a copy of its Managing Boards written approval of the account holder or the authorized person is required;
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Within 15 (fifteen) days from the date of receipt of the full and valid dossier, the State Bank of Vietnam shall notify the enterprise of its decision on whether the opening of such account is approved or not.
Upon the termination of the loan account, if the enterprise has not paid up its debts and wishes to maintain the operation of this account; prior approval of the State Bank of Vietnam is required.
- The enterprise seriously violates the provisions of the Vietnam State Banks permit to open the account;
- Within six months after the enterprise is granted such permit by the State Bank of Vietnam it fails to open the account or the account does yet not operate.
IV. BALANCING OF FOREIGN CURRENCIES
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The above-said objects are allowed to directly contact the banks licensed to trade in foreign currencies to buy the necessary amounts of foreign currencies under Vietnams current regulations on foreign exchange management
When considering whether to allow or not a foreign invested enterprise or a foreign business cooperation party to buy foreign currency(ies) at banks licensed to trade in foreign currencies, the State Bank of Vietnam shall base itself on:
- The provisions of the investment license on the product consumption market and the task of balancing foreign currencies;
- The actual situation of business activities of the enterprise or foreign business cooperation party, i.e. duration of production and business activities in Vietnam; possibility of balancing the need in foreign currencies; source of revenues in Vietnam Dong;
- The enterprises or foreign business cooperation partys actual need in foreign currencies;
- The Banks ability of meeting the need in foreign currencies;
- The fields and localities where investment is encouraged by the State of Vietnam.
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- The application for purchase of foreign currency(ies);
- A notarized copy of the investment license;
- A report on revenues and expenditures in foreign currency(ies) in the plan year;
- A notarized copy of the import-export permit issued by the Ministry of Trade (if the enterprise applies for the purchase of foreign currency(ies) in service of import);
- A copy of the schedule on payment of principal, interest and fee set in the foreign currency borrowing contracts (if the enterprise or foreign business cooperation buys foreign currency(ies) to pay domestic and foreign debts);
- A copy of the annual financial statement certified by an audit agency and a copy of the record of the annual profit distribution with the certification by the tax office that all the financial obligations have been fulfilled (if the enterprise or foreign business cooperation party buys foreign currencies to remit profits abroad);
- A copy of the report on the liquidation of the enterprise or foreign business cooperation party (if the enterprise or foreign business cooperation buys foreign currency(ies) to transfer abroad the prescribed capital or the foreign investors capital for the performance of the business cooperation contract);
- A copy of the service contract signed with a foreign partner (if the enterprise or foreign business cooperation party buys foreign currencies to pay service charges to the foreign partner);
Within 10 (ten) days from the receipt of the full and valid dossier, the State Bank of Vietnam shall notify the foreign invested enterprise or foreign business cooperation party of its decision to permit or not to permit the purchase of foreign currency(ies).
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17.1. Remitting profits abroad: Upon the end of each fiscal year, the foreign investor investing in Vietnam may remit abroad his/her profits. The bank shall base itself on the following papers:
- The financial statement certified by an audit agency;
- The record of the Managing Board on the profit distribution (for joint venture enterprises)
- The certification by a competent tax office that the foreign invested enterprise or the foreign business cooperation party has fulfilled all the financial obligations toward the State;
- The report on the liquidation of the enterprise or the business cooperation contract (BCC) approved by the investment license granting agency (if the foreign investor remits profits abroad after the enterprise is dissolved or the contract terminates).
When a foreign invested enterprise or a business cooperation contract ceases its operation, the foreign investor shall be entitled to transfer abroad his/her profits after completing the liquidation procedure without having to wait until the end of the fiscal year.
17.2. Transferring abroad the prescribed capital and the reinvested capital:
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- The liquidation record already approved by the investment license granting agency;
- The report on the fulfillment of all financial obligations toward the State of Vietnam (certified by a competent tax office);
In cases where the amount of money transferred abroad exceeds the initial prescribed capital brought into Vietnam plus the reinvested capital, the excess amount can be transferred abroad only when there is a certification by the investment license granting agency and in accordance with Point 17.1 of this Circular.
17.3. The transfer of principals, interests and fees of foreign loans by a foreign invested enterprise shall be effected under Vietnams current regulations on the management of foreign borrowings and debt payment by enterprises
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VIII. INFORMATION AND REPORTING REGIME AND HANDLING OF VIOLATIONS
- The situation of the operation of the special accounts for foreign currencies opened at these banks by the foreign invested enterprises and foreign business cooperation parties;
- The situation of the sale of foreign currencies to the foreign invested enterprises and the foreign business cooperation parties.
- Every quarter, on the tenth day of the first month of the following quarter at the latest, each provincial/municipal branch of the State Bank shall report the list of registered special accounts for foreign currencies and the situation of their operation, which have been registered by the foreign invested enterprises and are currently open in its locality;
- Every quarter, on the tenth day of the first month of the following quarter at the latest, each provincial/municipal branch of the State Bank shall report on the situation of the sale of foreign currencies by the banks licensed to trade in foreign currencies in its locality to the foreign invested enterprises and foreign business cooperation parties.
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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR
Le Duc Thuy
- 1Circular No.01/2001/TT-NHNN, guiding the management of foreign exchange in the overseas direct investment by Vietnamese enterprises, promulgated by the State Bank.
- 2Decree of Government No.05/2001/ND-CP, amending and supplementing a number of articles of the Government''s Decree No.63/1998/ND-CP of August 17, 1998 on foreign exchange management.
- 1Circular No.04/2001/TT-NHNN, guiding the management of foreign exchange applicable to foreign-invested enterprises and foreign parties to business cooperation contracts, promulgated by the State Bank.
- 2Circular No.04/2001/TT-NHNN, guiding the management of foreign exchange applicable to foreign-invested enterprises and foreign parties to business cooperation contracts, promulgated by the State Bank.
Circular No. 02-TT/NH7 of June 28, 1997 guiding the management of foreign exchange at foreign invested enterprises and foreign parties to business cooperation contracts
- Số hiệu: 02-TT/NH7
- Loại văn bản: Thông tư
- Ngày ban hành: 28/06/1997
- Nơi ban hành: Ngân hàng Nhà nước
- Người ký: Lê Đức Thuý
- Ngày công báo: Đang cập nhật
- Số công báo: Đang cập nhật
- Ngày hiệu lực: 13/07/1997
- Ngày hết hiệu lực: 02/06/2001
- Tình trạng hiệu lực: Hết hiệu lực