Joint Circular No. 05/2007/TTLT/NHNN-BKH-BTC-BTM guiding the establishment and analysis of Vietnam's balance of payments

JOINT CIRCULAR

Guidelines for the preparation and analysis of Vietnam's balance of payments国际贸易支付的越南规定

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Pursuant to Article 42 of the Foreign Exchange Law 2005;

Pursuant to Decree No. 164/1999/NĐ-CP dated November 16, 1999 of the Government on the management of Vietnam’s balance of payments.

The State Bank of Vietnam (hereinafter referred to as the State Bank), the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Trade provide guidelines for the preparation and analysis of Vietnam’s balance of payments (hereinafter referred to as the balance of payments) as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of application:

1.1. Ministries and sectors as stipulated in Articles 7, 9, 10, 11, and 12 of Decree No. 164/1999/NĐ-CP (referred to collectively as the agencies).

1.2. Organizations and individuals who are residents and non-residents engaging in foreign exchange activities in Vietnam and participating in economic transactions as prescribed in Clause 1, Article 3 of Decree No. 164/1999/NĐ-CP.

2. Content and form of information provided for the preparation of the balance of payments:

2.1. Agencies shall provide data and information to the State Bank according to the forms in the Appendices of this Circular.

2.2. Credit organizations shall provide data for the preparation of the balance of payments in accordance with the reporting system on accounting and statistics of the State Bank.

2.3. Non-credit organizations and individuals shall provide data to the State Bank:

a) Joint-stock companies and companies under the Vietnam Post and Telecommunications Corporation, Vietnam Maritime Corporation, Civil Aviation Administration of Vietnam, Vietnam National Airline Corporation, and Vietnam Oil and Gas Group shall directly provide data to the State Bank according to the forms in Appendix III of this Circular.

b) Economic organizations and individuals shall provide data according to the requirements of ministries and sectors in compliance with the forms in the Appendices of this Circular to be compiled and submitted to the State Bank.

c) Organizations and individuals shall provide information according to national statistical surveys or surveys outside the national survey program organized by the State Bank in coordination with relevant ministries and sectors in compliance with the regulations on statistics.

3. Principles for providing information:

Agencies, organizations, and individuals providing information to the State Bank for the preparation of the balance of payments shall comply with the following principles:

3.1. Ensuring truthfulness, objectivity, accuracy, completeness, and compliance with the indicators, calculation methods, currency units, and deadlines specified in the forms in the Appendices of this Circular.

3.2. Avoiding duplication and overlap between the forms of data provided.

II. SPECIFIC PROVISIONS

PART 1

PREPARATION OF THE ACTUAL AND PROJECTED BALANCE OF PAYMENTS

4. Principles for preparing the balance of payments:

4.1. Economic transactions recorded in the balance of payments include all economic transactions between residents and non-residents of Vietnam within a specific period. Residents and non-residents of Vietnam are defined as stipulated in Clause 2 and 3, Article 4 of the Foreign Exchange Law. Economic transactions in the balance of payments are classified according to the balance of payments statistical method issued by the International Monetary Fund in 1993 for member countries as follows:

a) Transactions in the current account include transactions between residents and non-residents regarding goods, services, labor income, investment income, income from securities investment, interest on foreign loans and deposits, and unilateral transfers.

b) Transactions in the capital and financial account include transactions between residents and non-residents regarding the transfer of capital from abroad to Vietnam and from Vietnam to abroad in the field of direct investment; investment in securities; foreign borrowing repayment, foreign lending and recovery of foreign debt; unilateral capital transfers; other forms of investment and transactions.

4.2. The balance of payments is prepared in US dollars.

4.3. Data on economic transactions are recorded at the time of ownership transfer.

4.4. The value of economic transactions is calculated based on market prices and converted into US dollars. The value of economic transactions denominated in Vietnamese dong and other foreign currencies except US dollars is converted into US dollars according to the exchange rate prescribed by the Ministry of Finance for converting foreign currencies into Vietnamese dong for enterprise accounting purposes.

5. Data for the preparation of the actual balance of payments provided by agencies and organizations to the State Bank:

5.1. Goods data:

The Ministry of Planning and Investment (General Statistics Office) provides goods data based on the compilation of customs data and other organizations' data.

5.2. Service data:

a) The Ministry of Finance provides data on government import and export services.

b) Vietnam Maritime Corporation provides data on maritime transport services.

c) Civil Aviation Administration of Vietnam and Vietnam National Airline Corporation provide data on air transport services.

d) Vietnam Post Corporation, Vietnam Telecom I Corporation, Vietnam Telecom II Corporation, and other corporations under the Vietnam Post and Telecommunications Group provide data on international postal and telecommunications services.

e) Credit organizations provide data on import and export service payments in accordance with the reporting system on accounting and statistics of the State Bank.

g) The Ministry of Planning and Investment (General Statistics Office) coordinates with the State Bank to collect service data from other sources to supplement service data for the preparation of the balance of payments.

5.3. Investment income data:

a) The Ministry of Finance provides data on due interest payable and actual interest paid on foreign government debts.

b) The State Bank compiles data on due interest payable and actual interest paid on foreign corporate debts.

c) The Ministry of Planning and Investment provides data on profits of enterprises with foreign direct investment.

d) Vietnam Oil and Gas Group provides data on profits of enterprises with foreign direct investment in the oil and gas sector.

5.4. Transfer data:

a) The Ministry of Finance provides data on foreign aid to Vietnam and from Vietnam to other countries under the state budget.

b) The Ministry of Planning and Investment provides data on foreign technical assistance provided to Vietnam in the form of technical aid from abroad.

c) Vietnam Post Corporation provides data on money transfers from Non-residents to Residents.

d) The Ministry of Finance (General Department of Customs) provides data on foreign currency inflows and outflows declared by organizations and individuals when entering and exiting the country.

đ) Credit institutions provide data on transfers according to the regulations of the State Bank of Vietnam regarding accounting and banking statistics reporting systems.

5.5. Direct investment data:

The Ministry of Planning and Investment provides data on foreign direct investment in Vietnam and Vietnamese direct investment abroad.

5.6. Listed securities data:

The Ministry of Finance (State Securities Commission) provides data on listed securities trading activities between Residents and Non-residents on the Stock Exchange/Securities Trading Center.

5.7. Foreign debt data:

a) The Ministry of Finance provides data on government foreign debt under its state management function for foreign debt management.

b) The State Bank of Vietnam compiles data on foreign debt of enterprises under its state management function for foreign debt management.

6. Data for forecasting balance of payments provided by agencies and organizations to the State Bank of Vietnam:

6.1. The Ministry of Planning and Investment provides short-term and long-term planning data on key macroeconomic indicators (gross domestic product; import and export of goods and services; total social investment; foreign direct investment, foreign borrowing).

6.2. The Ministry of Finance provides data on annual plans for foreign borrowing and repayment by Vietnam.

7. Other relevant agencies and organizations provide data as required by the State Bank of Vietnam for balance of payments compilation.

PART 2

MONITORING AND ANALYZING BALANCE OF PAYMENTS

8. Ministries and sectors are responsible for monitoring and analyzing the balance of payments in accordance with Decree No. 164/1999/NĐ-CP to fulfill their state management functions.

9. Every six months, the State Bank of Vietnam, in collaboration with the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Trade, conducts analysis, evaluation, and proposes solutions to stabilize the balance of payments.

PART 3

TIME LIMITS FOR REPORTING AND INFORMATION ON DATA

10. Ministries, Sectors, and units mentioned in Clause 5, Clause 6 Section 1 of this Circular are responsible for providing information and data to the State Bank of Vietnam within the time limits specified in the attached Appendices.

11. The State Bank of Vietnam reports the balance of payments to the Government and sends it to the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Trade for macroeconomic statistics and management requirements:

a) On the 25th day of the last month of each quarter, report the forecast balance of payments for the next quarter; on September 25 each 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 balance of payments situation of the previous quarter; on February 10 each year, report the actual balance of payments of the previous year.

III. IMPLEMENTATION

12. This Circular takes effect fifteen days after its publication in the Official Gazette. Circular No. 05/2000/TT-NHNN1 dated March 28, 2000, issued by the State Bank of Vietnam guiding the implementation of certain points on the compilation of Vietnam's international balance of payments, ceases to be effective from the date this Circular takes effect.

13. Ministries and sectors as stipulated in Article 7, 9, 10, 11, and 12 of Decree No. 164/1999/NĐ-CP, credit institutions, organizations and individuals who are Residents and Non-residents are responsible for implementing this Circular./.