Circular No. 03/2019/TT-NHNN amending and supplementing certain provisions of Circular No. 32/2013/TT-NHNN dated December 26, 2013, issued by the Governor of the State Bank of Vietnam guiding the implementation of regulations on limiting the use of foreign currency within the territory of Vietnam.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 32/2013/TT-NHNN

 dated December 26, 2013 of the Governor of the State Bank of Vietnam

guiding the implementation of regulations on restricting the use of foreign currency

on the territory of Vietnam

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Foreign Exchange Decree dated December 13, 2005 and the Decree Amending and Supplementing Certain Articles of the Foreign Exchange Decree dated March 18, 2013;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Foreign Exchange Management;

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing certain provisions of Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations on restricting the use of foreign currency on the territory of Vietnam.

Article 1. Amending and supplementing certain provisions of Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations on restricting the use of foreign currency on the territory of Vietnam

Supplement Point c to Clause 16, Article 4 as follows:
"c) Foreign investors are allowed to place deposits or provide guarantees in foreign currency transfers when participating in auctions in the following cases:

(i) Purchasing shares in state-owned enterprises undergoing equitization approved by the Prime Minister;

(ii) Purchasing shares or state capital contributions in state-owned enterprises or enterprises with state capital undergoing divestment approved by the Prime Minister;

(iii) Purchasing shares or capital contributions of state-owned enterprises invested in other enterprises undergoing divestment approved by the Prime Minister.

In case of winning the auction, foreign investors shall transfer investment capital in accordance with the laws on foreign exchange management to pay for the value of purchased shares or contributed capital. In case the auction is not successful, foreign investors are permitted to transfer out of the country the amount of deposit or guarantee in foreign currency after deducting any related incurred expenses (if any)."

Article 2. Responsibility for Implementation

The Heads of the Office, Department Heads of the Department of Foreign Exchange Management, Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally governed cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, General Directors (Directors) of credit organizations, and foreign bank branches are responsible for organizing the implementation of this Circular.

Article 3. Effectiveness

This Circular takes effect from May 13, 2019./.