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