Socialist Republic of Vietnam

DECISION ON OBLIGATIONS TO SELL AND RIGHTS TO PURCHASE FOREIGN CURRENCY OF RESIDENTS BEING ORGANIZATIONS

No. 61-2001-QD-TTg, Hanoi, 25 April 2001

The Prime Minister of the Government

Pursuant to the Law on the Organization of the Government dated 30 September 1992;

Pursuant to Decree 05-2001-ND-CP of the Government dated 17 January 2001 on Amendment of and Addition to a Number of Articles of Decree 63-1998-ND-CP of the Government dated 17 August 1998 on foreign exchange control;

On the proposal of the Governor of the State Bank of Vietnam;

Decides:


Article 1 Obligations to Sell Foreign Currency of Residents being Organizations

1. Residents being Vietnamese economic organizations, enterprises with foreign owned capital and foreign parties to business co-operation contracts, foreign company branches, foreign contractors and contractors in partnerships with foreign parties must sell a minimum of forty (40) per cent of the amount of foreign currency revenue from current transactions to banks in Vietnam licensed by the State Bank of Vietnam for foreign exchange activities (hereinafter referred to as authorized banks) immediately as from the date of transfer or payment of the foreign currency into the foreign currency account opened by the organization at an authorized bank.

2. Residents being State bodies, units of the armed forces, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and charitable funds of Vietnam must sell the total amount of foreign currency revenue from current transactions to authorized banks immediately as from the date of the transfer or payment of the foreign currency into the foreign currency account opened by the organization at an authorized bank.

In a case where the account balance of a resident being an organization listed above is not sufficient to maintain the foreign currency account, the organization shall be entitled to retain the necessary amount of foreign currency in order to maintain the foreign currency account in accordance with the regulations of the authorized bank at which the account is opened.

3. With respect to amounts of foreign currency revenue in the form of subsidy or aid, a resident being an organization listed above shall not be obliged to sell the foreign currency but shall deal with it in accordance with the agreement undertaken by the resident with the donor.

Article 2 Rights to Purchase Foreign Currency of Residents being Organizations

1. Residents being Vietnamese economic organizations, credit institutions in Vietnam, foreign company branches, foreign contractors, contractors in partnerships with foreign parties, State bodies, units of the armed forces, political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds and charitable funds of Vietnam shall, upon having requirements for foreign currency to satisfy current transactions, capital transactions or other permitted transactions in accordance with regulations, have the right to purchase foreign currency from authorized banks upon presentation of proper papers and source documents.

2. Residents being enterprises with foreign owned capital and foreign parties to business co-operation contracts shall, upon having requirements for foreign currency to satisfy current transactions, capital transactions or other transactions in accordance with regulations, have the right to purchase foreign currency from authorized banks upon presentation of proper papers and source documents.

3. Residents being enterprises with foreign owned capital and foreign parties to business co-operation contracts which invest in a specially important project in accordance with the program of the Prime Minister shall be considered by the Prime Minister who will make a decision guaranteeing foreign currency balancing on a project-by-project basis. Authorized banks shall be responsible to satisfy the foreign currency requirements of enterprises with foreign owned capital and foreign parties to business co-operation contracts in respect of which the Prime Minister has issued a decision guaranteeing foreign currency balancing; and in any case where current foreign currency funds are insufficient to so satisfy, it shall report to the State Bank of Vietnam for the purpose of supplementing its foreign currency funds.

4. Residents being enterprises with foreign owned capital and foreign parties to business co-operation contracts which invest in a project for the construction of infrastructure facilities or in another important project shall be considered by the Prime Minister who will make a decision assuring assistance in foreign currency balancing on the proposal of the Governor of the State Bank of Vietnam when authorized banks are unable to satisfy foreign currency requirements.

Article 3 Purchase and Sale of Foreign Currency of the State Budget

Foreign currency funds of the State Budget must be deposited in a foreign currency account opened at the State Bank of Vietnam for the purpose of receipt of revenue and payment of expenditure in foreign currency of the State Budget.

Annually, the Ministry of Finance and the State Bank of Vietnam shall, on the basis of the planned foreign currency revenue and expenditure of the State Budget, agree on a plan for the purchase and sale of foreign currency by the State Budget and shall conduct purchases and sales of foreign currency in accordance with such plan.

Article 4 Responsibilities of Authorized Banks

Upon purchase or sale of foreign currency, an authorized bank shall be responsible:

1. To notify and guide residents being organizations to conduct purchases and sales of foreign currency in accordance with the provisions on the purchase and sale of foreign currency in this Decision. In any case where a resident being an organization does not agree to fulfil its obligation to sell foreign currency revenue from current transactions, to take the initiative and conduct the purchase of foreign currency in accordance with the ratio prescribed in this Decision;

2. To sell amounts of foreign currency to residents being organizations as provided for in article 2 of this Decision when it currently has foreign currency funds;

3. To display the buying exchange rate and the selling exchange rate in accordance with regulations of the State Bank of Vietnam;

4. To purchase and sell foreign currency in accordance with the exchange rates prescribed by the State Bank of Vietnam;

5. To ensure the maintenance of its foreign exchange position or Vietnamese dong position at the end of each day in accordance with regulations of the State Bank of Vietnam;

6. To conduct sales of foreign currency to residents being organizations in accordance with the preferential import policy of the Prime Minister of the Government from time to time, in accordance with regulations on selling foreign currency in Decree 63-1998-ND-CP of the Government dated 17 August 1998 and Decree 05-2001-ND-CP of the Government dated 17 January 2001 on Amendment of and Addition to a Number of Articles of Decree 63-1998-ND-CP of the Government dated 17 August 1998, in accordance with the regulations on foreign exchange control for foreign direct investment in Vietnam, and in accordance with other relevant regulations on foreign exchange control.

Article 5 Applicable Forms of Foreign Exchange Transactions

The purchase and sale of foreign currency between residents being organizations and authorized banks shall be carried out in the forms of spot exchange transactions, forward exchange transactions, and swap exchange transactions in accordance with regulations of the State Bank of Vietnam.

Article 6 Effectiveness

1. This Decision shall be of full force and effect after fifteen (15) days from the date of its signing.

2. This Decision shall replace Decisions 173-1998-QD-TTg dated 12 September 1998, 232-1998-QD-TTg dated 1 December 1998 and 180-1999-QD-TTg dated 30 August 1999 of the Prime Minister of the Government and other regulations on obligations to sell and rights to purchase foreign currency of residents being organizations.

3. The Governor of the State Bank of Vietnam shall be responsible for providing guidelines for implementation of this Decision.

4. Ministers, heads of ministerial equivalent bodies, heads of Government bodies, and chairmen of people's committees of provinces and cities under central authority shall be responsible for implementation of this Decision.


The Prime Minister of the Government


PHAN VAN KHAI