Circular No. 05/2000/TT-NHNN1 guiding the implementation of certain points regarding the establishment of the balance of payments of Vietnam pursuant to Decree No. 164/1999/NĐ-CP dated November 16, 1999 of the Government.

CIRCULAR

GUIDELINES ON ESTABLISHING THE BALANCE OF PAYMENTS OF VIETNAM

PURSUANT TO DECREE NO. 164/1999/NĐ-CP

DATED NOVEMBER 16, 1999 OF THE GOVERNMENT

IMPLEMENTING DECREE NO. 164/1999/NĐ-CP DATED NOVEMBER 16, 1999 OF THE GOVERNMENT ON MANAGING THE BALANCE OF PAYMENTS OF VIETNAM, THE STATE BANK OF VIETNAM ISSUES THESE GUIDELINES ON ESTABLISHING THE BALANCE OF PAYMENTS AS FOLLOWS:

PART I

GENERAL PROVISIONS

1. THESE GUIDELINES APPLY TO THE ESTABLISHMENT OF THE BALANCE OF PAYMENTS OF VIETNAM BASED ON A SYSTEMATIC AGGREGATION OF ALL ECONOMIC TRANSACTIONS BETWEEN RESIDENTS AND NON-RESIDENTS IN A SPECIFIED PERIOD.

2. ECONOMIC TRANSACTIONS BETWEEN RESIDENTS AND NON-RESIDENTS INCLUDE THE FOLLOWING TRANSACTIONS:

a. TRANSACTIONS IN GOODS ARE TRANSACTIONS IN EXPORTS AND IMPORTS OF GOODS REFLECTED IN RECEIPTS AND PAYMENTS FROM ACTIVITIES OF EXPORTING AND IMPORTING GOODS BETWEEN RESIDENTS AND NON-RESIDENTS.

b. TRANSACTIONS IN SERVICES ARE RECEIPTS AND PAYMENTS FROM ACTIVITIES OF SERVICES SUCH AS TRANSPORT, TOURISM, POSTAL SERVICES, TELECOMMUNICATIONS, INSURANCE, AIRLINES, BANKING, INFORMATION, CONSTRUCTION, AND OTHER SERVICES BETWEEN RESIDENTS AND NON-RESIDENTS.

c. TRANSACTIONS IN PERSONNEL INCOME ARE WAGES, BONUSES, AND OTHER INCOME IN CASH OR KIND PAID BY NON-RESIDENTS TO RESIDENTS AND VICE VERSA.

d. TRANSACTIONS IN INCOME FROM INVESTMENT are ARE RECEIPTS FROM DIRECT INVESTMENT PROFITS, INTEREST FROM INVESTMENT IN SECURITIES, AND INTEREST ON MATURING LOANS BETWEEN RESIDENTS AND NON-RESIDENTS AND VICE VERSA.

đ. UNILATERAL CURRENT TRANSFERS are ARE GRANTS WITHOUT REPAYMENT, GIFTS, AND OTHER UNILATERAL TRANSFERS IN CASH OR KIND FOR CONSUMPTION PURPOSES FROM NON-RESIDENTS TO RESIDENTS AND VICE VERSA.

e. UNILATERAL CAPITAL TRANSFERS are ARE GRANTS WITHOUT REPAYMENT FOR INVESTMENT PURPOSES, DEBTS WRITTEN OFF BETWEEN RESIDENTS AND NON-RESIDENTS; TYPES OF ASSETS IN CASH OR KIND OF RESIDENTS MIGRATING OUT OF THE COUNTRY AND OF NON-RESIDENTS MIGRATING INTO VIETNAM.

g. DIRECT INVESTMENT TRANSACTIONS

ARE ACTIONS WHERE FOREIGN INVESTORS BRING INTO VIETNAM CAPITAL IN CASH OR ANY ASSET TO CARRY OUT INVESTMENT ACTIVITIES IN ACCORDANCE WITH THE FOREIGN INVESTMENT LAW IN VIETNAM, OR VIETNAMESE INVESTORS INVEST ABROAD IN CASH OR ANY ASSET TO CARRY OUT INVESTMENT ACTIVITIES IN ACCORDANCE WITH VIETNAMESE AND FOREIGN LAWS.

h. TRANSACTIONS IN SECURITIES INVESTMENT

ARE TRANSACTIONS IN BUYING AND SELLING SECURITIES BETWEEN RESIDENTS AND NON-RESIDENTS.

i. FOREIGN DEBT TRANSACTIONS

ARE TRANSACTIONS WHERE RESIDENTS BORROW AND DISCHARGE DEBTS TO NON-RESIDENTS. k. FOREIGN LOAN AND DEBT COLLECTION TRANSACTIONS

ARE TRANSACTIONS WHERE RESIDENTS LEND AND COLLECT DEBTS FROM NON-RESIDENTS.

l. OTHER INVESTMENT TRANSACTIONS AND OTHER TRANSACTIONS THAT INCREASE OR DECREASE ASSETS OR LIABILITIES ARE TRANSACTIONS BETWEEN RESIDENTS AND NON-RESIDENTS REGARDING CASH, DEPOSITS, AND ACCOUNTS RECEIVABLE AND PAYABLE.

3. RESIDENTS

ARE ORGANIZATIONS OR INDIVIDUALS INCLUDING:

a. STATE ENTERPRISES, PRIVATE ENTERPRISES, COMPANIES, COOPERATIVES, AND OTHER ECONOMIC ORGANIZATIONS BELONGING TO ALL SECTORS OF THE VIETNAMESE ECONOMY ESTABLISHED AND OPERATING IN VIETNAM (HEREINAFTER REFERRED TO AS VIETNAMESE ECONOMIC ORGANIZATIONS);

b. FOREIGN-INVESTED ENTERPRISES AND FOREIGN PARTIES PARTICIPATING IN JOINT BUSINESS CONTRACTS OPERATING UNDER THE FOREIGN INVESTMENT LAW IN VIETNAM; SUBSIDIARIES OF FOREIGN COMPANIES, FOREIGN CONTRACTORS, JOINT VENTURE CONTRACTORS WITH FOREIGN PARTIES, AND OTHER ECONOMIC ORGANIZATIONS WITH FOREIGN CAPITAL OPERATING IN VIETNAM BUT NOT UNDER THE FOREIGN INVESTMENT LAW IN VIETNAM;

c. VIETNAMESE CREDIT ORGANIZATIONS, JOINT-VENTURE CREDIT ORGANIZATIONS, NON-BANK CREDIT ORGANIZATIONS WITH 100% FOREIGN CAPITAL, AND FOREIGN BANK SUBSIDIARIES OPERATING IN VIETNAM (HEREINAFTER REFERRED TO AS CREDIT ORGANIZATIONS IN VIETNAM);

d. STATE AGENCIES, MILITARY UNITS, POLITICAL ORGANIZATIONS, POLITICAL-SOCIAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, PROFESSIONAL-SOCIAL ORGANIZATIONS, SOCIAL FUNDS, AND CHARITY FUNDS OF VIETNAM OPERATING IN VIETNAM;

đ. FOREIGN DIPLOMATIC MISSIONS, CONSULAR AGENCIES, MILITARY UNITS, AND POLITICAL, POLITICAL-SOCIAL, SOCIAL, PROFESSIONAL-SOCIAL, SOCIAL FUNDS, AND CHARITY FUNDS OF VIETNAM OPERATING ABROAD; VIETNAMESE CITIZENS WORKING IN THESE ORGANIZATIONS AND THOSE ACCOMPANYING THEM;

e. REPRESENTATIVE OFFICES OF VIETNAMESE ECONOMIC ORGANIZATIONS, REPRESENTATIVE OFFICES OF FOREIGN-INVESTED ENTERPRISES IN VIETNAM, AND REPRESENTATIVE OFFICES OF CREDIT ORGANIZATIONS IN VIETNAM OPERATING ABROAD;

g. VIETNAMESE CITIZENS RESIDING IN VIETNAM, VIETNAMESE CITIZENS RESIDING ABROAD FOR LESS THAN 12 MONTHS;

h. FOREIGNERS RESIDING IN VIETNAM FOR AT LEAST 12 MONTHS;

i. VIETNAMESE CITIZENS TRAVELING, STUDYING, RECEIVING MEDICAL TREATMENT, AND VISITING ABROAD (EXCLUDING TIME LIMITS).

4. NON-RESIDENTS ARE ORGANIZATIONS OR INDIVIDUALS INCLUDING:

a. FOREIGN ECONOMIC ORGANIZATIONS ESTABLISHED AND OPERATING ABROAD;

b. VIETNAMESE ECONOMIC ORGANIZATIONS, FOREIGN-INVESTED ENTERPRISES IN VIETNAM OPERATING ABROAD;

g. Foreign individuals residing abroad; foreign individuals residing in Vietnam for less than twelve months;

h. Vietnamese citizens residing abroad for twelve months or more;

i. Foreign individuals visiting, studying, receiving medical treatment, and visiting relatives in Vietnam (regardless of duration);

In cases where it has not been determined whether an organization or individual is a Resident Person or a Non-Resident Person, the Governor of the State Bank shall decide.

Chapter II

BALANCE OF PAYMENTS RECORDING

Section I: Principles for recording the balance of payments

1. The balance of payments is recorded based on indicators reflecting all economic transactions between Resident Persons and Non-Resident Persons. Economic transactions between organizations and individuals that are Resident Persons and organizations and individuals that are Non-Resident Persons are collected based on periodic reporting forms or through sample surveys conducted by the State Bank in coordination with the General Statistics Office and relevant Ministries and Sectors.

2. The balance of payments is recorded in United States Dollars (USD).

3. Economic transactions between Resident Persons and Non-Resident Persons are recorded at the time they are entered into accounting books. For goods subject to customs statistics by the General Customs Department, current regulations of the General Statistics Office shall apply.

4. Economic transactions are valued according to the actual prices agreed upon between Resident Persons and Non-Resident Persons.

5. The value of economic transactions denominated in Vietnamese Dong is converted into USD according to the exchange rate as currently prescribed by the Ministry of Finance regarding guidance on converting foreign currencies into Vietnamese Dong for enterprise accounting purposes.

The value of economic transactions denominated in foreign currencies other than USD is first converted into Vietnamese Dong, then converted into USD according to the exchange rate as currently prescribed by the Ministry of Finance regarding guidance on converting foreign currencies into Vietnamese Dong for enterprise accounting purposes.

Section II: Responsibilities of Ministries and Sectors in

Recording the Balance of Payments

Ministries and Sectors specified in this Circular are responsible for providing information and data to the State Bank according to the following indicators:

1. The Ministry of Planning and Investment: information and data according to Form No. 1.

2. The Ministry of Finance: information and data according to Form No. 2.

3. The Ministry of Trade:

a. Information and data on import and export management mechanisms, quota lists, prohibited imports, quota allocation plans, adjustments, and supplements.

b. Information and data on import and export plans for goods and services according to Form No. 3.

4. The General Statistics Office:

a. Information and data on imports and exports including actual figures for the reporting period and adjusted figures for previous periods.

b. Information and data on periodically estimated Gross Domestic Product (GDP) by economic sector and by source and use.

c. Information and data on domestic savings and investment.

5. The General Customs Department: information and data on imports and exports of goods, gold, and foreign currencies according to current regulations of the General Statistics Office.

6. The Ministry of Public Security: information and data according to Form No. 6.

7. The Ministry of Foreign Affairs: information and data according to Form No. 7.

8. The Securities Commission: information and data according to Form No. 8.

9. The Ministry of Transport: information and data according to Form No. 9.

10. The Civil Aviation Administration: information and data according to Form No. 10.

11. The Ministry of Culture and Information: information and data according to Form No. 11.

12. The Ministry of Construction: information and data according to Form No. 12.

13. The Ministry of Education and Training: information and data according to Form No. 13.

14. The Ministry of Science and Technology and Environment: information and data according to Form No. 14.

15. The Ministry of Labor, Invalids, and Social Affairs: information and data according to Form No. 15.

16. The Postal and Telecommunications Corporation: information and data according to Form No. 16.

17. The Ministry of Health: information and data according to Form No. 17.

18. The Ministry of Industry: information and data according to Form No. 18.

19. Other Ministries and Sectors such as the Ministry of Agriculture and Rural Development, the Ministry of Fisheries, the Ministry of National Defense, the Tourism General Department, the Sports General Department, etc., are responsible for coordinating with the State Bank to report when necessary on economic transactions between Resident Persons and Non-Resident Persons.

20. Financial institutions shall report in accordance with current regulations of the State Bank regarding accounting and statistical reporting systems.

Chapter III: Reporting Periods and Information on Situations and Data

1. The Ministries and Sectors mentioned in Section II, Chapter II of this Circular shall be responsible for providing information and data to the State Bank as follows:

a) On the 15th day of the last month of each quarter, provide forecast information and data for the next quarter; on September 10th every year, provide forecast information and data for the following year; forecast data for the next quarter; on September 10 each year, provide information and forecast data for the following year;

b) N |||g) On the 20th day of the first month of each quarter, provide actual information and data; actual data of for the previous quarter; on January 31st every year, provide actual information and data for the previous year;

2. The reporting period for the State Bank to report the balance of payments to the Government.

a) On the 25th day of the last month of each quarter, report the forecast balance of payments for the next quarter; on September 25th every year, report the forecast balance of payments for the following year;

b) On the last working day of the first month of each quarter, report the actual implementation of the balance of payments for the previous quarter; on February 10th every year, report the actual balance of payments for the previous year.

Chapter III

IMPLEMENTING PROVISIONS

1. This Circular takes effect fifteen days from the date of signature.         

2. Any violation of the contents, regulations, and reporting periods stipulated in this Circular will be subject to administrative penalties under the provisions of the law.

3. The Director of the Office, the Inspector General of the State Bank, the Heads of Units under the State Bank, the Governors of the Branches of the State Bank in Provinces and centrally-administered cities, and the General Directors (Directors) of Credit Organizations within their respective functions shall be responsible for organizing, guiding, inspecting, and implementing this Circular./.