Circular No. 02/2004/TT-NHNN guiding the deposit at banks for businesses engaged in labor export

CIRCULAR

Guidelines for depositing collateral with banks for businesses engaged in labor export

____________________________

Pursuant to Clause 5, Article 9 and Clause 6, Article 26 of Decree No. 81/2003/NĐ-CP dated July 17, 2003 of the Government detailing and guiding the implementation of the Labor Code regarding Vietnamese workers working abroad, and after reaching consensus with the Ministry of Labor, War Invalids and Social Affairs, the State Bank of Vietnam hereby provides guidelines for businesses engaged in labor export to deposit collateral with banks as follows:

I. APPLICABLE SUBJECTS AND SCOPE OF REGULATION

1. This Circular stipulates the procedures for businesses engaged in labor export under Article 8 of Decree No. 81/2003/NĐ-CP dated July 17, 2003 to deposit collateral with a commercial bank (hereinafter referred to as the business and the bank).

2. Businesses, banks, and related parties shall implement the opening, use, and management of the collateral account in accordance with this Circular and relevant laws.

II. OPENING, USING, AND MANAGING THE LABOR EXPORT COLLATERAL ACCOUNT

1. The business deposits the amount of money as prescribed in Clause 5, Article 9 of Decree No. 81/2003/NĐ-CP dated July 17, 2003 for the competent state agency to consider granting the license for labor export activities. This amount of collateral must be maintained throughout the period of the business's labor export activities.

In case the business is allowed by the bank to withdraw the collateral funds for the purpose of bringing Vietnamese workers from abroad back to the country upon written request by the Ministry of Labor, War Invalids and Social Affairs as specified in Point 3 of this Section, within a maximum period of 30 days from the date of withdrawing the collateral funds, the business must replenish the required collateral amount. If the business fails to do so, the bank will notify the Ministry of Labor, War Invalids and Social Affairs to take appropriate measures.

2. Deposit procedures:

a. The business submits to the bank a request for depositing collateral for labor export activities (Appendix 01 model).

b. The bank and the business sign a collateral deposit agreement in compliance with this Circular and relevant laws, including the following contents: name and address of the business and the bank; amount of collateral; interest rate on collateral deposits; opening and using the collateral account; withdrawing collateral funds; refunding collateral funds; responsibilities of each party and other agreements.

c. The bank records the collateral amount into the account "Receiving collateral in Vietnamese dong - guaranteeing other payments" and confirms the business's deposit for labor export activities (Appendix 02 model).

3. The bank allows withdrawal of collateral funds for the purpose of bringing Vietnamese workers from abroad back to the country in the following cases:

a. There is a request from the business (Appendix 03 model) accompanied by a document from the Ministry of Labor, War Invalids and Social Affairs requesting the repatriation of Vietnamese workers from abroad.

b. There is a document from the Ministry of Labor, War Invalids and Social Affairs accompanied by a power of attorney from the business for withdrawing the collateral funds.

4. The bank refunds the collateral funds to the business and closes the account in the following cases:

a. There is a document from the Ministry of Labor, War Invalids and Social Affairs informing that the business does not meet the conditions for obtaining or renewing the labor export activity license.

b. There is a document from the Ministry of Labor, War Invalids and Social Affairs confirming that the business has ceased labor export activities, terminated contracts signed with workers for overseas work, and fulfilled all financial obligations to the state as prescribed by law.

Responsibilities of the bank and the business:

5.1. Responsibilities of the bank:

a. Implement and guide the business to open, use, and manage the collateral account in accordance with this Circular and relevant laws;

b. Confirm the deposit for labor export activities for the business;

c. Pay interest on the balance of the collateral funds according to the agreed interest rate in the collateral deposit agreement.

5.2. Responsibilities of the business:

a. Deposit and maintain the required collateral amount as stipulated in Point 1 of this Section.

b. Comply with the provisions of this Circular and relevant laws regarding the opening, use, and management of the collateral account.

III. IMPLEMENTATION

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

2. Prior to the effective date of this Circular, if the business has deposited collateral with a financial organization or credit institution other than a commercial bank, it must transfer the collateral to a commercial bank in accordance with this Circular.

3. Heads of units under the State Bank, Directors of provincial branches directly under the central government, Boards of Directors, General Managers (Directors) of commercial banks, and businesses eligible for consideration for a labor export activity license are responsible for implementing this Circular./.