CIRCULAR

Circular guiding foreign exchange management for the purchase of government bonds with foreign currency by organizations and individuals pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Government Prime Minister.

Pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Government Prime Minister on the issuance of government bonds for investment in some important transportation and water conservancy works of the country, the State Bank of Vietnam guides the implementation of foreign exchange management for the purchase of government bonds with foreign currency by organizations and individuals as follows:

1. Objectives:

The subjects participating in the purchase of government bonds include:

a. Vietnamese citizens residing both inside and outside the country;

b. Overseas Vietnamese;

c. Foreigners working and residing in Vietnam;

d. Administrative and public service agencies;

e. Political organizations; political-social organizations; political-professional-social organizations; social organizations; social-professional organizations;

f. Organizations belonging to all economic sectors;

g. Foreign organizations operating within the territory of Vietnam.

Article 2. Scope of Regulation

This Circular regulates foreign exchange transactions related to the purchase of government bonds with foreign currency by organizations and individuals pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Government Prime Minister.

3. Opening and using foreign currency accounts to purchase government bonds with foreign currency:

3.1. Subjects purchasing government bonds with foreign currency may open and use foreign currency deposit accounts to purchase government bonds with foreign currency. The opening and use of foreign currency deposit accounts at commercial banks permitted to operate foreign exchange business in Vietnam shall be carried out in accordance with Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank guiding Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management.

3.2. Supplementing the contents of receipts and payments on foreign currency deposit accounts of organizations and individuals specified in Sections I and II of Chapter I, Sections I and III of Chapter II of Part Two of Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank as follows:

Part Receipts:

- Receipts of foreign currency from the transfer or receipt of interest payments and principal repayment of government bonds in foreign currency upon maturity.

Part Payments:

- Payments of foreign currency for the purchase of government bonds with foreign currency.

4. Provisions on the use of foreign currency to purchase government bonds with foreign currency:

4.1. Organizational subjects purchasing government bonds may use foreign currency in their foreign currency deposit accounts opened at banks permitted to conduct foreign exchange business to purchase government bonds with foreign currency.

4.2. Individual Vietnamese citizens purchasing government bonds may use foreign currency in their foreign currency deposit accounts and foreign currency cash to purchase government bonds with foreign currency at the National Treasury.

4.3. Overseas Vietnamese and foreigners working and residing in Vietnam purchasing government bonds may use foreign currency in their foreign currency deposit accounts to purchase government bonds with foreign currency at the National Treasury.

5. Implementation provisions:

5.1. This Circular takes effect fifteen days from the date of publication in the Official Gazette.

5.2. Organizations and individuals purchasing government bonds with foreign currency pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Government Prime Minister on the issuance of government bonds for investment in some important transportation and water conservancy works of the country are responsible for implementing this Circular.

5.3. The Director of the Office, Heads of Departments under the State Bank of Vietnam, Heads of units under the State Bank of Vietnam, and General Directors (Directors) of commercial banks permitted to conduct foreign exchange business have the responsibility to organize and implement this Circular.