DECISION

ON THE SALE OF FOREIGN CURRENCIES TO FOREIGN-INVESTED ENTERPRISES AND FOREIGN PARTIES TO BUSINESS COOPERATION CONTRACTS

THE STATE BANK GOVERNOR

Pursuant to the Law on Vietnam State Bank and the Law on Credit Institutions of December 12, 1997;
Pursuant to the Government’s Decree No.15/CP of March 2, 1993 on the tasks, powers and management responsibility of the ministries and ministerial-level agencies;
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 Foreign Exchange Management Department,

DECIDES:

Article 1.- Foreign-invested enterprises and foreign parties to business cooperation contracts may buy foreign currencies at licensed banks to satisfy the following transactions:

1. Current transactions prescribed in Appendix 3 to Circular No.01/1999/TT-NHNN7 of April 16,1999 of the State Bank, guiding the implementation of the Government’s Decree No.63/1998/ND-CP of August 17,1998 on foreign exchange management;

2. Other permitted transactions:

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b/ Payment of principals, interests and charges of medium- and long-term foreign loans already registered with the Vietnam State Bank;

c/ Payment of principals, interests and charges of foreign currency loans from banks licensed to operate in Vietnam;

d/ Transfer of legal capital, re-investment capital or business cooperation contract performance capital abroad upon the termination of operation.

Article 2.- Depending on the foreign currency use purposes, when selling or transferring foreign currencies abroad for foreign-invested enterprises and foreign parties to business cooperation contracts, the licensed banks shall request the foreign-invested enterprises and foreign parties to the business cooperation contracts to produce the investment licenses and necessary documents named below:

1. Foreign currencies for the import of essential raw materials, materials, spare parts: The import permit (if any), the commercial contract; vouchers evidencing the goods delivery or the performance of commercial contract;

2. Foreign currencies for payment of service charges to foreign parties: The service provision contracts signed with foreign countries and vouchers showing that the service provision contracts have already been performed;

3. Foreign currencies for transfer profits and lawful incomes back home: The financial report certified by the Audit; the minutes of the Managing Board (or the Project Management Board for business cooperation contracts) on the division of profits (or turnover); the competent tax office�s written certification of the fulfillment of financial obligations towards the Vietnamese State;

4. Foreign currencies for transfer of wages, bonuses and other allowances of foreigners working in foreign-invested enterprises or under business cooperation contracts upon their demands for working trips or transfer of money or back home: The written certification by foreign-invested enterprises or foreign parties to business cooperation contracts of the amount of money eligible for transfer back home (total lawful income minus the amount for implementation of financial obligations and amount already spent in Vietnam); the competent tax office’s certification of the fulfillment of the law-prescribed financial obligations by foreigners;

5. Foreign currencies for payment of principals, interests and charges of the foreign currency loans: The foreign currency-borrowing contract (or debt acknowledgement paper), debt repayment time table; for medium-/long-term foreign loans, there must be the State Bank’s written certification of the loan registration;

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7. With regard to the purchase and use of foreign currencies in service of other current transactions, depending on each specific case, the licensed banks shall request the foreign-invested enterprises and foreign parties to business cooperation contracts to produce necessary vouchers to evidence the lawfulness of such current transactions.

The necessary documents stated at Points 1, 2, 3, 4, 5, 6 and 7 above include the originals or copies with signatures and certifying seals of the general directors (directors) or the lawfully authorized persons. In case of necessity, the licensed banks shall have to examine the originals in order to ensure the legality of these documents.

Article 3.- This Decision takes effect from the date of its signing and replaces the regulations in Part IV of Circular No.02/TT-NHNN7 of June 28,1997 of the State Bank guiding the management of foreign exchanges for foreign-invested enterprises and foreign parties to business cooperation contracts and Official Dispatch 585/CV-NHNN7 of July 6, 1998 of the State Bank Governor guiding the sale of foreign currencies to foreign-invested enterprises and foreign parties to business cooperation contracts.

Article 4.- The heads of units under the Vietnam State Bank, the directors of the State Bank’s branches in the provinces and centrally-run cities, chairmen of the Managing Boards and General Directors (Directors) of the licensed banks shall have to implement this Decision.

FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR




Duong Thu Huong