|
|
| |
Decree
No. 06/ND-CP, 6 March/2000 of the Government on Investment
Co-operation With Foreign Entities in the Fields of Medical
Examination and Treatment of Diseases, Education and Training,
and Scientific Research |
| |
Decree
No. 07/NQ-CP, 5 June 2000 of the Government On the
Building and Development of the Software Industry
During the Period 2000 2005 |
| |
Decree
No. 10/ND-CP, 23 January 1998 of The Government on
A Number Of Encouragement and Guarantee Measures for Foreign
Direct Investment Activities in Vietnam. |
| |
Decree
No. 12/CP, 18 February 1997 of the Government on Setting
Forth Detailed Regulations for Implementing The Law on
Foreign Investment in Vietnam |
| |
Decree
No. 24/ND-CP, 31 July 2000 of the Government on Regulating
in detail the implementation of the Law on Foreign Investment
("FIL") in Vietnam |
| |
Decree
No. 36/CP, 24 April 1997 of the Government on Industrial
Zones, Export Processing Zones and High-Tech Zones |
|
|
| |
Decree
No. 02/ND-CP, 15 August 2000 of the Government on
Investment in The Basis of Build-Operate-Transfer Contracts,
Build-Transfer Contracts Applicable to Foreign Investment
in Vietnam |
| |
Circular
No. 02/TT-NH7,
18 February 1997 of the Government on regulating details
in implementing the Law on foreign investment in VN,
the state bank of Vietnam issues the guideline in foreign
exchange control of foreign invested enterprises and
foreign parties of business cooperation contracts. |
| |
Decree
No. 62/ND-CP, 15 August 2000 of the Government on
Promulgating The Regulations on Investment in The Basis
of Build-Operate-Transfer Contracts, Build-Transfer-Operate
Contracts and Build-Transfer Contracts Applicable to
Foreign Investment in Vietnam. |
| |
Decree
No.45/2000/ND-CP: DECREE OF THE GOVERNMENT
Setting Forth Regulations on Representative Offices
and Branches in Vietnam of Foreign Merchants and Foreign
Tourism Enterprises
Decision
No.128/2000/QN-TTg:DECISION
OF THE PRIME MINISTER OF THE GOVERNMENT
On a number of policies and measures to stimulate investment
And development of the software industry |
| |
Decision
No.21/2001/QD-UB:
DECISION OF THE CHAIRMAN OF THE CITY PEOPLE'S
COMMITTEE
Regarding
a number of preferential policies and measures for encouraging
investments in Quang Trung Software Park
|
|
CIRCULAR 02
| I |
GENERAL
PROVISION |
1
l 2 l |
| II |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
3
l 4 l 5 l 6
l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
7
l 8 l 9 l 10
l 11 l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
12
l 13 l 14 l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
15
l 16 l 17 l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
18
l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
19
l 20 l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
21
l 22 l 23 l 24
l 25 l |
| III |
OPEN
AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM |
26
l 27 l 28 l |
|
|
|
THE STATE BANK
OF VIETNAM
No. 02/TT-NH7
|
THE
GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM
Independence Freedom Happiness
--------- * --------- |
CIRCULAR 02
|
Guiding Foreign
Exchange Control of foreign Invested Enterprises And foreign
parties of business cooperation contracts On 02/18/97,
the Government promulgated Decree No.12/CP on regulating
details in implementing the Law on foreign investment
in VN, the state bank of Vietnam hereby issues the guideline
in foreign exchange control of foreign invested enterprises
and foreign parties of business cooperation contracts
as follow:
|
I.
GENERAL PROVISION
| 1 |
This circular
is applicable to the following subjects:Foreign organization
and individuals permitted in the business and production
operations in Vietnam, including:
| |
100% foreign
own enterprises, join venture enterprises with foreign
parties referred hereafter to as foreign invested
enterprises (FIE) |
| |
Foreign
parties of business cooperation contracts (BCC)
referred hereafter to as foreign business cooperation
parties (FBCP) |
| |
Foreigners
working in foreign invested enterprises and business
cooperation contracts projects(BCC) |
The international credit
operations, activities of foreign companys branches in
Vietnam, other commercial and indirect investment forms
relating to foreign exchange should not be subject to
the revised scope of this Circular.
|
| 2 |
FIC,FBCP, foreigners
working in FIE and BCC upon carrying out transactions related
to forex at banks operating in Vietnam which are permitted
to trade in forex, including : State own Commercial Banks,
Bank for investment and development, Branches of Foreign
Banks, join venture Banks with foreign parties, join stock
commercial Banks shall comply with the regulation herein
and other current regulation on forex control of Vietnam |
II.
OPEN AND USING OF ACCOUNT AT BANKS OPERATING IN VIETNAM
| 3 |
FIE must open
deposit account in specialized capital in foreign currency
at one bank permitted to trade in foreign currencies in
the same locality where the head office of the FIE located.
The deposit account for specialized capital transfer as
follow:- Invested capital of foreign investors transfer
into and out of Vietnam- Principal of offshore loan transferred
into and out of Vietnam;
| |
Interest
and fees of offshore loans transferred out of Vietnam
for payment to foreign lender; |
| |
Profits
and other legal incomes of foreign investors transferred
out of Vietnam; |
| |
Capitals
withdraw from deposit accounts (fixed or non-fixed
tern) in foreign currencies of enterprises; |
Within 10 days after the
date of opening deposit account for specialized capital
in foreign currencies, FIE must register with the State
Bank Branches of city/province in the same locality (as
per form 1)
In the case that Banks permitted to trade
in forex in the locality are unable to meet Banking services
to customers, enterprises may open a deposit account for
specialized capita; in foreign currencies at a Bank in
different locality but subject to prior approval by the
State Bank branches of the City /province where the head
office is located and registration with the State Bank
branches of City/province where the enterprises will open
deposit account for specialized capital foreign currencies.
|
| 4 |
Besides deposit
account for specialized capital in foreign currencies, FIE
can open account in foreign currencies and VND at Bank permitted
to operate in Vietnam. |
| 5 |
In case FBCP run
direct business and production operations in Vietnam, the
opening and using of accounts at Bank permitted to operate
in Vietnam should be subject to the regulations in points
3 & 4 herein. |
| 6 |
All proceeds and
payment in foreign currencies and VND of FIE and FBCP should
be transacted through their account opened at banks, in
compliance with the current regulation of Vietnam on forex
control and VND in non-cash payment |
III.
OPENING AND USING FOREIGN CURRENCY ACCOUNT
AT BANKS OVERSEAS
| 7 |
According to the
need of opening account in foreign currencies oversea, the
State Bank of Vietnam may consider and permit FIE to open
account for loan capitals in foreign currencies on the basic
of following term and conditions:
| |
Foreign
lenders require the to open accounts at overseas
for loans capital receipts and repayments; |
| |
Each loans
capital contract is in the minimum of USD 3,000,000
(United Sate Dollars: three million) or other foreign
currencies of equivalent value; |
| |
Enterprises
require medium- long term loans from oversea for
capital construction, further investment, production
expansion; |
| |
Offshore
loan contracts have been approved by the State Bank
of Vietnam for offshore borrowings |
|
| 8 |
According to the
nature of operation , accounts loan capital opened oversea
may transact one or some of the following:
| |
Receiving
loan capitals in foreign currencies from foreign; |
| |
Depositing
part of enterprises turnover in the limit of principal
sums ,interests and fees of due loans; |
| |
Paying
due principals, interests and fees to foreign lender; |
| |
Paying
foreign suppliers of goods and services. |
|
| 9 |
FIE who want to
open accounts for loan to capital overseas shall send to
the State Bank of Vietnam a set of documents inclusive of:
| |
Application
from for opening an account for loan capital overseas
(as per form 2) |
| |
Letter
of recommendation with the full name ,position and
signature sample of the account holder or authorized
person, as for join venture enterprise there must
be a copy of the minutes of the Board of Management
agreeing to appoint the account holder or the authorized
person; |
| |
Loan Capital
Contract signed with lender.
Within 15 (fifteen)days from the date of receipt
of full documents properly, the State Bank of
Vietnam will inform
the enterprise its decision on opening an account
for loan capital . |
|
| 10 |
The State Bank
of Vietnam will dissolve the permit granted and terminate
the operation of the account for loan capital in the following
cases:
| |
The enterprise
seriously violate/beaches the regulations stated
in the Permit to open an account buy the State Bank
of Vietnam; |
| |
After
6 month from the date that the State Bank of Vietnam
granted the Permit to open an account for loan capital
overseas, the enterprise has yet to open that account
or have opened but not conducted that account. |
|
| 11 |
When FIE operating
in Aviation, Navigation, Post, Insurance, Tourism or permitted
to open their representative office overseas in need of
opening foreign currency account overseas for clearing payments
subject to international practices, receipts &payments
there or expenses of the representative office operations,
the State Bank of Vietnam will consider their requirement
on the basis of the current regulations of Vietnam on forex
control. |
IV.
BALANCE OF FOREIGN CURRENCIES
| 12 |
FIE and FBCP themselves
shall balance their own requirements on foreign currencies
for their operations, excluding the cases as stipulated
in Point 14 herein.
Within 12 months from the date FIE and FBCP have sold foreign
currencies to Banks permitted to trade foreign currencies,
in case of reasonable needs, the State Bank of Vietnam may
permit to re-purchase at the maximum the amount sold to
Banks permitted to trade in foreign currencies. |
| 13 |
FIE and FBCP manufacturing
essential import substitutes, carrying out infrastructure
construction projects (declared by the Ministry of Planning
and Investment)and some specially important projects will
be ensured by the State Bank of Vietnam to convert VND to
foreign currencies for meeting justifiable requirement.
The above-mentioned subjects are allowed to deal directly
with Banks permitted to trade foreign currencies for purchasing
necessary foreign currencies in compliance with the current
regulation of Vietnam on forex control. |
| 14 |
According to specific
situation of the balance of payments in a certain period
, of projective on reducing the deficit of the current balance
, increasing the National reserves of foreign currencies
, exchange rate policy, requirements of foreign currencies
to be prioritized . . ., The state Bank of Vietnam may consider
its supports to part of needs in foreign currencies of FIE
and FBCP which are not mentioned in point 14 herein. of
needs in foreign currencies of FIE and FBCP which are not
mentioned in Point 14 herein.
Upon considering whether FIE and FBCP allowed to buy foreign
currencies at Banks permitted to trade in foreign currencies,
the State Bank of Vietnam will base on the followings:
| |
The regulations
in Investment License on product- consuming markets
and the task of balancing foreign currencies; |
| |
Situation
of actual business operation of FIE and FBCP such
as business &production duration in Vietnam
;ability to self-balance foreign currencies, sources
of VND proceeds; |
| |
Actual
needs of FIE and FBCP; |
| |
Ability
of Banks to meet foreign currencies; |
| |
Scope
and area where the Government of Vietnam encourages
investments. |
| Documents
for buying foreign currencies sent to the
State Bank of VietNam including: |
| |
Application
from for buying foreign currencies (as per Form
3) |
| |
Notarized
photocopy of Investment Licence |
| |
Report
on proceeds and payments in foreign currencies in
the planned year |
| |
Notarized
photocopy of Import-Export Licence issued by the
Ministry of Trade(if enterprises for repayments
of offshore and local loans); |
| |
Photocopy
of the schedule in paying principal ,interests and
all fees/charges in Loan Contracts in foreign currencies
(if enterprises apply for buying foreign currencies
for repayments of offshore and local loans); |
| |
Photocopy
of audited financial statement in the year and minutes
in annual profit distribution with the certification
that financial obligations to tax authorities have
been completed (if enterprises apply for buying
foreign currencies for profit transfer to overseas); |
| |
Photocopy
of report on liquidating/settling enterprises or
business cooperation contracts (if enterprises apply
for buying foreign currencies to transfer their
legal capital or capital for carrying out BCC projects
of foreign to overseas); |
| |
Photocopy
of Services Contracts signed with foreign companies(if
FIE apply for buying foreign currencies for payments
of services to foreign companies); |
| |
Within
10 days from the date of full document receipt properly,
the State Bank of Vietnam will inform its decision
to FIE and FBCP on buying foreign currencies. |
|
V.
TRANSFER OF CAPITAL INTO AND OUT OF VIETNAM
TRANSFER OF PROFIT TO OVERSEAS
| 15 |
FIE and FBCP have
to contribute the invested capital according to the contribution
progress as stipulated in the Joint Venture Contract or
the Charter of the enterprises or the Business Cooperation
Contract which have been approved by relevant authorities
in connection with the feasibility study. |
| 16 |
Transfer of foreign
currencies into and out of Vietnam :legal capital, re-invested
capital, profit of the foreign investor, principal, interests
& fees of offshore loans shall be channeled through
the deposit account for specialized capital in foreign currencies
which FIE and FBCP have registered with the State Bank of
Vietnam in Cities/Provinces.
| 16.1 |
Transfer
of profit to overseas: Upon ending the financial
year, foreign investors in Vietnam are permitted
to transfer their profit to overseas, the Banks
will base on the following document:
| |
Audited
financial statements; |
| |
Minutes
by the Board of Management on profit distribution
(in case of joint venture enterprises); |
| |
Certification
by tax authorities on that FIE and FBCP
have completed their financial obligation
to the State; |
| |
Report
on liquidating/setting the enterprises or
BCC approved by the authorities issuing
Investment Licences (if foreign investors
transfer their profit upon expiry or dissolution) |
In the case the FIE
and FBCP terminate the operation, foreign investors
are permitted to transfer their profit portion
after having completed all liquidation procedures,
possibly before the closing of financial year.
|
| 16.2 |
Transfer
of legal capital and re-invested capital in overseas:
| |
Liquidation
report approved by the authorities issuing
an Investment Licences; |
| |
Report
on completing financial obligations to the
State of Vietnam (certified by the relevant
tax authorities); |
In the case that
the amount transferred to overseas is higher than
the legal capital transferred into Vietnam and
re-invested capital, such differential amount
will be transferred out upon approval by the authorities
issuing Investment Licences and being carried
out as per the regulations in Point
|
| 16.3 |
Transfer
of principal, interests and fees of offshore capital
by FIE shall be implemented subject to the regulations
on control of offshore borrowings & repayments
of enterprises. |
|
| 17 |
Foreignerr working
in FIE and BCC projects are permitted to remit salaries
and other legal in foreign currencies to overseas after
having fully paid income taxes and deducted their other
reasonable expenses in Vietnam. |
VI.
FOREX RATE
| 18 |
Conversion of
foreign currencies and VND for contributing the capital
to be applicable to the forex rate officially offered by
the State Bank of Vietnam at the time of conversion .Sales
and purchases of foreign currencies relating to the business
operation of FIE and FBCP are to be transacted at the rates
offered by Commercial Banks at the time of dealing |
VII.
OTHER PROVISIONS
| 19 |
Exeecuting offshore
loan contracts and guaranteeing offshore loans of FIE and
FBCP are to be applicable to the current regulation of Vietnam
on control of offshore borrowing &repayment of enterprises. |
| 20 |
Payment of salaries,
bonuses and allowances, opening and using of foreign currency
accounts of foreigners working in enterprises and BCC projects
are to be applicable to the current of Vietnam on Forex
control. |
VIII.
REGULATION ON INFORMATION & REPORT
AND PROCEEDING VIOLATIONS / BREACHES
| 21 |
Annually,latest
by the fifth day of the first month in the following year,
FIE and FBCP shall report their implementation of invested
capital to the State Bank Branches in Cities/Provinces in
the same area (as per Form 5) |
| 22 |
Every 6 month
,latest by the fifth day of the seventh month, FIE permitted
to open the account for offshore loan overseas shall report
the operation status of the account for offshore loan overseas
to the Forex Control Department of the State Bank of Vietnam
(as per Form 6) |
| 23 |
Quarterly,latest
by the fifth day of the first month in the following quarter,
Bank permitted to trade in foreign currencies shall report
to the State Bank Branches in Cities/Provinces in the same
area the followings:
| |
Operation
status of the deposit account for specialized capital
in foreign currencies of FIE and FBCP presently
opened at their Bank(as per Form 7); |
| |
Sales
of foreign currencies to FIE and FRCP(as per Form
8); |
|
| 24 |
Reports by the
State Bank Branches in Cities/Provinces to the State Bank
of Vietnam (Forex Control Department):
| |
Quarterly,
latest by the tenth day of the first month in the
following quarter, they have to report the list
and the operation of deposit accounts for specialized
capital in foreign currencies of FIE and FBCP registered
and presently opened in their area (as per From
9A and 9B); |
| |
Quarterly,
latest by the tenth day of the first month in the
following quarter, they have to report the situation
of selling foreign currencies to FIE and FBCP by
the Banks permitted to trade foreign currencies
in their area (as per Form 10 ); |
| |
Yearly,
latest by the tenth day of the first month in the
following year, they have to report the status of
implementing the invested capital by FIE and FBCP
in the area (as per From 11) |
|
| 25 |
FIE,FBCP and foreigners
working in FIE and BCC projects upon violations/breaches
against the regulations of this Circular and subject to
the degree and level may be under administrative of this
Circular and subject to the degree and level may be under
administrative penalties in accordance with Decree No.18/cp
dated 24/02/1997 by the Government on proceeding administrative
violations in the Banking field or subject to the current
regulations by Laws. |
IX.
PROVISION OF IMPLEMENTATION
| 26 |
Heads of Departments
&Bureaus, Director of the Governors Office, Chief inspector
of the State Bank of Vietnam, Directors of the State
Bank Branches in cities and province , general Director/
managers (Directors/ Managers) of Banks licensed to operated
in Vietnam, general Diretors (Diretors ) of FIE and representative
of FBCP in there functions shall be responsible for guiding,
expanding and implementing this Circular. |
| 27 |
Ministries, Sectors,
Agencies under the Government and the Peoples Committee
of cities and provinces subject to their functions and coordinate
to implement this Circular. |
| 28 |
This Circular
supersedes and cancels Circular No.06/TT-NH7 dated 18/09/1993
by the State Bank of Vietnam ,and comes into effect from
15 days after the signing date. |
|
For
GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR
(Signed
&sealed)
LE DUC THUY
|
|
|
ABOUT
US
