Circular No. 07/2001/TT-NHNN guiding the implementation of the Regulation on managing foreign currency of neighboring countries in Border Areas and Economic Zones at Border Gate, issued together with Decision No. 140/2000/QĐ-TTg dated December 8, 2000 of the Prime Minister.

CIRCULAR

Guidelines for Implementing the Regulation on Managing Border Countries' Currency in Border Areas and Economic Zones at Border Gates of Vietnamissued together with Decision No. 140/2000/QĐ-TTg dated December 8, 2000 of the GovernmentPursuant to Article 2 of Decision No. 140/2000/QĐ-TTg dated December 8, 2000 of the Prime Minister regarding the issuance of the Regulation on Managing Border Countries' Currency in Border Areas and Economic Zones at Border Gates of Vietnam, the State Bank of Vietnam hereby provides guidelines for implementing the Regulation as follows:Section I.

These Circulars apply to individuals using border countries' currency in Border Areas and Economic Zones at Border Gates. Individuals referred to herein include:

1.1. Border residents are as follows:

APPLICABLE OBJECTS

1a. Vietnamese citizens registered as permanent residents in Border Areas;

b. Other citizens (including Vietnamese citizens outside Border Areas, citizens of border countries with Vietnam) who have registered businesses in Border Areas and Economic Zones at Border Gates.

1.2. Other individuals are Vietnamese nationals and foreigners not falling within the scope defined in Point 1.1 above.

Individuals using currencies from other countries (not border countries' currencies) in Border Areas and Economic Zones at Border Gates shall be governed by the provisions of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management and other related foreign exchange management regulations.

The use of border countries' currencies by organizations within Border Areas and Economic Zones at Border Gates shall be governed by the provisions of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management and other related foreign exchange management regulations.

2. SCOPE OF REGULATION

3. Currency of which country (Chinese Yuan, Lao Kip, Cambodian Riel) may only be used in Border Areas and Economic Zones at Border Gates adjacent to that country; specifically:

Chapter II. 

Chinese Yuan may be used in Border Areas and Economic Zones at Border Gates of Vietnam adjacent to China or stored, carried by individuals within the provinces of Vietnam bordering China.

Lao Kip may be used in Border Areas and Economic Zones at Border Gates of Vietnam adjacent to Laos or stored, carried by individuals within the provinces of Vietnam bordering Laos.

1. Cambodian Riel may be used in Border Areas and Economic Zones at Border Gates of Vietnam adjacent to Cambodia or stored, carried by individuals within the provinces of Vietnam bordering Cambodia.

2. Chinese Yuan and Lao Kip may be used in Border Areas and Economic Zones at Border Gates or stored, carried by individuals in Lai Chau Province (a province bordering both China and Laos).

3. Lao Kip and Cambodian Riel may be used in Border Areas and Economic Zones at Border Gates or stored, carried by individuals in Kon Tum Province (a province bordering both Laos and Cambodia).

4. Section III.

5. Laotian Kíp and Cambodian Riel may be used in Border Areas and Gateways Economic Zones, or stored and carried by individuals in the province of Kon Tum (which borders Laos and Cambodia).

Section III. 

PURPOSE OF USE

The currency of neighboring countries shall be used for the following purposes:

1. As a means of payment when buying and selling goods and services in border areas and economic zones at ports of entry between individuals or between individuals and economic organizations permitted by the State Bank of Vietnam to collect such currency;

2. Selling to banks authorized by the State Bank of Vietnam to conduct foreign exchange transactions (authorized banks) or foreign currency exchange counters located in border areas and economic zones at ports of entry or in other areas within border provinces permitted by the State Bank of Vietnam;

3. Holding and carrying on person:

3.1. Individuals are permitted to hold and carry on person the currency of neighboring countries within the scope of border provinces sharing borders with one country (Renminbi may be held and carried on person in border provinces sharing borders with China, or Kip may be held and carried on person in border provinces sharing borders with Laos, or Riel may be held and carried on person in border provinces sharing borders with Cambodia).

3.2. Citizens of neighboring countries with Vietnam who have registered businesses in border areas and economic zones at ports of entry, if permitted by competent Vietnamese authorities to enter inland provinces and have the need to carry on person the currency of neighboring countries for personal carrying or to sell to authorized banks must submit an application to the branch of the State Bank of Vietnam in the border province. The application includes a Request Form (Annex No. 1) and a permit to enter inland provinces issued by competent Vietnamese authorities (if submitting a copy, the original must be provided for verification).

Within five working days from the date of receipt of the Request Form, the branch of the State Bank of Vietnam in the border province will issue or not issue a Permit to Carry Currency of Neighboring Countries into Inland Provinces (Annex No. 2). If the permit is not issued, the branch of the State Bank of Vietnam in the border province must provide a written notice stating the reasons.

3.3. Foreign nationals entering Vietnam with a passport or substitute travel document, if they have declared to customs the amount of currency of neighboring countries, may carry this cash out of border provinces into inland provinces without the approval of the State Bank of Vietnam;

3.4. Vietnamese citizens entering Vietnam with a passport, if they have declared to customs the amount of currency of neighboring countries, may carry this cash out of border provinces into inland provinces without the approval of the State Bank of Vietnam;

3.5. Except for the cases specified in Points 3.2, 3.3, and 3.4 above, individuals are not permitted to carry on person the currency of neighboring countries into inland provinces; before entering inland provinces, individuals with currency of neighboring countries must sell it to authorized banks, foreign currency exchange counters, or deposit it under custodial arrangements at authorized banks in border provinces.

4. Carrying on person when exiting and entering through border checkpoints.

Individuals (including foreign individuals) exiting and entering through border checkpoints with a passport, travel document, or border identification card issued by competent Vietnamese or neighboring country authorities, if carrying cash in Vietnamese Dong, currency of neighboring countries, or other foreign currencies exceeding the limit set by the Governor of the State Bank of Vietnam, must declare to customs. For cases of exiting Vietnam to another country with amounts exceeding the limit, a permit from the State Bank of Vietnam is required.

Regulations on the limits of Vietnamese Dong, currency of neighboring countries, or other foreign currencies that can be brought in and out upon exit and entry, and procedures and authority for issuing permits for cases of exiting with amounts exceeding the limit, shall be implemented according to the regulations of the Governor of the State Bank of Vietnam during each period.

5. Investment in border areas and economic zones at ports of entry for foreign citizens. Such investments shall be conducted in accordance with the Law on Foreign Investment in Vietnam and related implementing regulations.

Section 4:
OPENING AND USING VIETNAMESE DONG ACCOUNTS

1. Conditions for opening accounts

Foreign citizens of neighboring countries permitted to operate in border areas and economic zones at ports of entry, who have Vietnamese Dong obtained from selling goods and providing services and other lawful sources of Vietnamese Dong, may open and maintain Vietnamese Dong accounts at authorized banks located in border provinces.

2. Procedures for opening and closing accounts

To be determined by the bank where the Vietnamese Dong account is opened.

3. Use of accounts

Foreign citizens of neighboring countries permitted to use Vietnamese Dong accounts shall follow the provisions below:

3.1. Income

a. Transfers or cash deposits from sales of goods and services in Vietnam to organizations and individuals in border areas and economic zones at ports of entry;

b. Transfers or cash deposits from sales of currency of neighboring countries or other foreign currencies to authorized banks or foreign currency exchange counters;

c. Transfers or cash deposits from other lawful sources of income.

3.2. Expenditure

a. Payments for purchasing goods and services from organizations and individuals operating in border areas and economic zones at ports of entry;

b. Purchasing their own currency from authorized banks or foreign currency exchange counters in border areas and economic zones at ports of entry for transfer back to their home country;

c. Withdrawing cash for spending in Vietnam;

d. Other expenditures for purposes permitted by Vietnamese law.

Chapter V. 

FOREIGN EXCHANGE DESK OF BANKS

1. The General Directors (Directors) of permitted Banks may decide to establish Foreign Exchange Desks in Border Areas and Economic Zones at Border Gates based on the conditions and capabilities of their Banks to conduct transactions of buying and selling Vietnamese Dong with currencies of neighboring countries, and shall be responsible for their decisions and the business results of the Foreign Exchange Desks.

Transactions involving other foreign currencies shall be carried out in accordance with the Operating Regulations of Foreign Exchange Desks issued by the Governor of the State Bank of Vietnam and other relevant foreign exchange management regulations.

2. When establishing Foreign Exchange Desks in Border Areas and Economic Zones at Border Gates within a certain province, the permitted Banks shall have the responsibility to notify the Branch of the State Bank of Vietnam in the border province about the location and number of Foreign Exchange Desks for management, inspection, and supervision.

Chapter VI. INDIVIDUAL FOREIGN EXCHANGE DESKS

1. Conditions for establishment

a. Being a Vietnamese citizen belonging to the category of border residents (excluding minors, persons with limited or no civil capacity, those being pursued for criminal responsibility or serving a prison sentence, or having been deprived of their profession by a court);

b. Having a location for the Foreign Exchange Desk within Border Areas and Economic Zones at Border Gates, or other areas within the border province approved by the State Bank of Vietnam;

c. Having a minimum capital of 50 million Vietnamese Dong in cash. Individuals must declare this themselves and bear legal responsibility for the accuracy of their declaration of capital.

2. Application procedures for obtaining a permit

Individuals meeting the above conditions who wish to establish a Foreign Exchange Desk to buy and sell Vietnamese Dong with the currency of neighboring countries must submit an application for a permit to the Branch of the State Bank of Vietnam in the border province where the Foreign Exchange Desk will be located. The application includes:

a. An application form for establishing a Foreign Exchange Desk (Appendix Model 3);

b. A lease contract for the location of the Foreign Exchange Desk or legal documents proving the right to use the location of the Foreign Exchange Desk; lawful proof of entitlement to use the location for foreign currency exchange counters;

c. Legal documents proving that the individual is a border resident in the province where the Foreign Exchange Desk will be established. One of the following documents must be provided: Original Household Registration Booklet or Border Identity Card or confirmation from the People's Committee of the commune, ward, town that they have permanent residence in Border Areas, Economic Zones at Border Gates or Business Registration Certificate in Border Areas, Economic Zones at Border Gates. In case of submitting copies of these documents, the original must be available for comparison or the copies must be notarized.

3. Permit issuance period

Within 15 working days from the date of receiving complete and valid applications, the Branch of the State Bank of Vietnam in the border province will consider and decide to issue a Permit for Establishing a Foreign Exchange Desk (Appendix Model 4) or refuse to issue the permit. If refusing to issue the permit, a written explanation of the reasons must be provided.

Individuals granted a Permit for Establishing a Foreign Exchange Desk by the Branch of the State Bank of Vietnam in the border province must implement the contents specified in the permit and register their business according to current laws.

4. Rights and obligations of individuals granted a Permit for Establishing a Foreign Exchange Desk

a. The right to independently determine the exchange rate for buying and selling Vietnamese Dong with the currency of neighboring countries;

b. The obligation to register their business, pay taxes, fees, and other revenues to the budget as prescribed by law;

c. Bear full responsibility for the business results and all actions before the law;

d. Place the Foreign Exchange Desk at the location specified in the permit; Not allowed to buy or sell currencies other than the currency of the neighboring country specified in the permit; Notify the Branch of the State Bank of Vietnam in the border province when changing locations or ceasing operations; Only commence business after obtaining a Business Registration Certificate;

e. Maintain books to record activities of buying and selling Vietnamese Dong with the currency of neighboring countries;

g. Regularly report to the Branch of the State Bank of Vietnam in the border province as stipulated in Point 1 of Section VII;

h. Strictly comply with other relevant foreign exchange management regulations;

i. Accept inspections and audits by the Branch of the State Bank of Vietnam in the border province and competent authorities; Have the responsibility to provide information and facilitate inspections and audits when requested.

5. Revocation of permits

The Director of the Branch of the State Bank of Vietnam in the border province will review and decide to revoke permits already issued to individuals in the following cases:

a. The individual no longer meets the conditions stipulated in Point 1 of Section VI;

b. After three months from the date of issuance of the permit, the individual does not conduct transactions of buying and selling Vietnamese Dong with the currency of neighboring countries;

c. There is evidence that the application for a permit to establish a Foreign Exchange Desk contains intentionally false information;

d. The individual operating a Foreign Exchange Desk frequently fails to report to the Branch of the State Bank of Vietnam in the border province according to the reporting system stipulated in Point 1 of Section VII of this Circular, despite being warned in writing three times;

e. The individual operating a Foreign Exchange Desk violates other provisions in items b, d, h of Point 4 of Section VI.

6. Handling when counterfeit money is discovered:

Upon discovering counterfeit money, individuals operating a Foreign Exchange Desk must immediately report to the nearest police agency and the Branch of the State Bank of Vietnam in the border province to proceed with investigation and handling.

Section VII. 

REPORTING SYSTEM

1. By the fifth day of the first month of each quarter, individuals permitted to establish foreign exchange counters in border areas and border economic zones shall report on the situation of buying and selling Vietnamese Dong with the currency of neighboring countries to the branch of the State Bank of Vietnam in the border province where they operate, in accordance with the contents of Report Form attached as Appendix No. 5;

2. By the fifth day of the first month of each quarter, banks permitted to operate within the border province (or their branches) that buy and sell Vietnamese Dong with the currency of neighboring countries shall report on the situation of buying and selling Vietnamese Dong with the currency of neighboring countries to the branch of the State Bank of Vietnam in the border province where they operate, in accordance with Report Form attached as Appendix No. 6;

3. By the tenth day of the first month of each quarter, branches of the State Bank of Vietnam in border provinces shall compile and report to the State Bank of Vietnam (Department of Foreign Exchange Management) on the issuance of permits for individuals to establish foreign exchange counters, the number of foreign exchange counters established by banks, and the situation of buying and selling the currency of neighboring countries within their jurisdiction, in accordance with the contents of Report Form attached as Appendix No. 7; in accordance with the content of Report Form No. 7 attached as an annex;

4. By the twentieth day of the first month of each quarter, the Department of Foreign Exchange Management shall compile and report to the Governor of the State Bank of Vietnam on the situation and relevant data related to the use, purchase, and sale of Vietnamese Dong with the currency of neighboring countries in accordance with this Circular;

Section VIII. INSPECTION, AUDIT AND DISPOSITION

1. After the foreign exchange counter commences operations, the branch of the State Bank of Vietnam in the border province where it operates shall be responsible for inspecting, auditing, and supervising the activities of the foreign exchange counter within its jurisdiction in accordance with the provisions of this Circular;

2. Organizations and individuals violating the provisions of this Circular may be subject to administrative penalties or criminal prosecution, depending on the nature and severity of the violation, in accordance with the law;

Section IX. IMPLEMENTATION

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

2. In cases where there are international agreements or treaties signed between Vietnam and neighboring countries relating to the use of the currency of neighboring countries in border areas and border economic zones, such agreements or treaties shall be implemented;

3. Any supplementation or amendment to this Circular shall be decided by the Governor of the State Bank of Vietnam;

4. The Director of the Office, the Head of the Department of Foreign Exchange Management, the Chief Inspector of the State Bank of Vietnam, the Heads of units under the State Bank of Vietnam, the Governors of branches of the State Bank of Vietnam in provinces and centrally-administered cities, and the General Directors (Directors) of permitted banks within the scope of their functions and duties shall be responsible for organizing guidance and implementation of this Circular;

 

 

ANNEX 1

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

..., date..., month..., year...

APPLICATION FOR PERMISSION TO CARRY FOREIGN CURRENCY OF NEIGHBORING COUNTRIES INTO PROVINCES INSIDE THE BORDER

To: State Bank of Vietnam

Branch in Province...

My name is:...Born on: ...

Passport for border area (or Border ID): ...……………

Issued by:...on: ...

I have cash amounting to:...

In words:…

I request the State Bank of Vietnam branch in:...to approve me to carry the above amount into provinces inside the border for the purpose of: ...

I hereby undertake full responsibility under the law for carrying and using the aforementioned amount.

Applicant
(Signature and full name)

ANNEX 2

Regarding carrying foreign currency of neighboring countries

into provinces inside the border.

To: Mr./Ms....

Considering the application for permission to carry foreign currency of neighboring countries into provinces inside the border from Mr./Ms.:..., the State Bank of Vietnam branch in ... has the following opinion:

Approve Mr./Ms. ...

Born on:...

Passport for border area number (or Border ID)...issued by...on...is allowed to carry the amount of foreign currency of neighboring countries in cash amounting to...(written in words)...(name of the currency of neighboring countries) into provinces inside the border for personal use or to sell to permitted banks.

This document is effective from...to...

Credit organization branch in province/city and basic credit cooperative…
(Signature & stamp)

Place of Receipt:
- As above
- File...

ANNEX 3

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

..., date..., month..., year...

APPLICATION FOR ESTABLISHING A FOREIGN EXCHANGE COUNTER

To: Branch of the State Bank of Vietnam

Province...

Full name:…………

Born on:...

Permanent residence:...

ID number: ...

Business registration certificate number (if applicable):

Phone number (if applicable)...Fax number: (if applicable)...

I have a minimum capital of fifty million Vietnamese Dong in cash and the right to use the location at:...

I request the Branch of the State Bank of Vietnam in...to permit me to establish a foreign exchange counter to buy and sell Vietnamese Dong with... (name of the currency of neighboring countries permitted to buy and sell) at the location:....

I commit to comply with all regulations on foreign exchange management by the state and the contents stipulated in the permit for establishing a foreign exchange counter.

I commit that the information provided is true and I am responsible under the law for the accuracy of the information above.

Applicant
(Signature and full name)

ANNEX 4

DECISION OF THE DIRECTOR OF THE STATE BANK OF VIETNAM BRANCH IN PROVINCE...

REGARDING PERMITTING THE ESTABLISHMENT OF AN INDIVIDUAL FOREIGN EXCHANGE COUNTER

DIRECTOR

BRANCH OF THE STATE BANK OF VIETNAM IN PROVINCE...

- Based on the Regulation on Managing the Currency of Neighboring Countries in Border Areas and Border Economic Zones issued together with Decision No. 140/2000/QĐ-TTg dated December 8, 2000 of the Prime Minister and Circular No...dated...of the State Bank of Vietnam guiding the implementation of the Regulation;

- Considering the application for establishing a foreign exchange counter in border areas and border economic zones from Mr./Ms.:...

Pursuant to …;

Article 1. Permission granted:

Full name:…

Born on:...

Permanent residence:...

ID number:...

Business registration certificate number (if applicable):

Phone number (if applicable)...Fax number: (if applicable)...

to establish foreign exchange counter number...at...to conduct transactions of buying and selling Vietnamese Dong with... (name of the currency of neighboring countries permitted to buy and sell).

Article 2. Mr./Ms. named in Article 1 above shall be responsible for complying with current foreign exchange management regulations and the following provisions:

a. The right to independently determine the exchange rate for buying and selling Vietnamese Dong with the currency of neighboring countries;

b. Obligation to register business and pay taxes, fees, and charges as prescribed by law;

c. Bear full responsibility for the business results and all actions before the law;

d. Place the foreign exchange counter at a fixed location as specified in the permit; Not to buy or sell currencies other than the currency of neighboring countries listed in the permit; Notify the branch of the State Bank of Vietnam in the border province when changing location or ceasing operations; Only commence business after obtaining a business registration certificate;

e. Maintain books to record the business activities of buying and selling Vietnamese Dong with the currency of neighboring countries;

g. By the end of the first month of each quarter, no later than the 5th day of that month, individuals permitted to establish foreign exchange counters in border areas and border economic zones shall report on the situation of buying and selling Vietnamese Dong with the currency of neighboring countries to the Branch of the State Bank of Vietnam in the border province where they operate, in accordance with the contents of Report Form attached as Appendix 5.

h. Comply with relevant foreign exchange management regulations.

i. Be subject to inspection and examination by the Branch of the State Bank of Vietnam in the border province where they operate and by competent state agencies; have the responsibility to provide information and facilitate the inspection and examination process when requested.

Article 3. The individual named in Article 1 above is responsible for implementing other relevant provisions set forth in Circular number / / guiding the implementation of the Regulation on managing the currency of neighboring countries in border areas and border economic zones issued together with Decision No. 140/2000/QĐ-TTg dated December 8, 2000 of the Prime Minister.

Article 4. This Decision takes effect from the date of signature. The individual named in Article 1 above...is responsible for enforcing this Decision.

DIRECTOR

Place of Receipt:
- Name of the person granted the license;
- State Bank of Vietnam (Department of Foreign Exchange Management) (for reporting purposes);
- File.

ANNEX 5

Foreign Exchange Counter of...(name of individual) Number:...

Province:...

Email/Website:

2. Intellectual Property Rights Owner:

REPORT ON THE SITUATION OF BUYING AND SELLING VIETNAMESE DONG WITH THE CURRENCY OF NEIGHBORING COUNTRIES

Quarter .../year ...

To: State Bank of Vietnam

Branch in Province...

Unit: 1000 (Chinese Yuan or Dong or Riel)

Recommendations, proposals:

..., Date...month...year...
Head of the Foreign Exchange Counter

ANNEX 6

Branch of Bank ...(Authorized Bank)

Province...

REPORT ON THE SITUATION OF BUYING AND SELLING VIETNAMESE DONG WITH THE CURRENCY OF NEIGHBORING COUNTRIES

Quarter.../year...

To: State Bank of Vietnam

Branch in Province...

I. Total number of foreign exchange counters in border areas and border economic zones of Bank...Branch in the province...:

II. Results of buying and selling Vietnamese Dong with the currency of neighboring countries:

Unit: 1000 (Chinese Yuan or Dong or Riel)

III. Recommendations, proposals:

..., Date...month...year...
Credit organization branch in province/city and basic credit cooperative…

ANNEX 7

To: State Bank of Vietnam

(Department of Foreign Exchange Management)

REPORT ON THE SITUATION OF BUYING AND SELLING VIETNAMESE DONG WITH THE CURRENCY OF NEIGHBORING COUNTRIES

Quarter.../year...

I. Number of foreign exchange counters established in border areas and border economic zones within the jurisdiction:..., including:

+ Number of foreign exchange counters of banks:...

+ Number of foreign exchange counters of individuals:...

II. Data on buying and selling Vietnamese Dong with the currency of neighboring countries:

Unit: 1000 (Chinese Yuan or Dong or Riel)

III. Recommendations, proposals:

..., Date...month...year...
Credit organization branch in province/city and basic credit cooperative…

Place of filing:
- As above
- To be filed...