Ordinance No. 12/1999/PL-UBTVQH10 on the Issuance of National Construction Bonds

ORDINANCE

On the issuance of national construction bonds

To promote the patriotic spirit of the people, to create capital for industrialization and modernization of the country, contributing to building and defending the nation;

Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992;

This Ordinance stipulates on the issuance of national construction bonds.

Chapter I

GENERAL PROVISIONS

Article 1

National construction bonds are issued by the Government to mobilize capital from the people to invest in important national projects and other essential works serving production and living, thereby creating material and technical foundations for the country.

Article 2

The purchase of bonds shall be carried out on a voluntary basis.

The State encourages all organizations and citizens of Vietnam, and overseas Vietnamese to buy bonds, contributing to building the nation.

The Socialist Republic of Vietnam welcomes foreign organizations and individuals buying bonds.

Article 3

The State guarantees the value of bonds and protects the ownership rights and other legitimate interests of bondholders.

Article 4

Ministries, ministerial-level agencies, government agencies, People's Councils at all levels, the Vietnam Fatherland Front and its member organizations within their respective functions and powers shall be responsible for organizing, guiding, publicizing, and mobilizing organizations and individuals to participate in purchasing national construction bonds.

Chapter II

ISSUANCE AND PAYMENT OF BONDS, RIGHTS AND INTERESTS OF BOND PURCHASERS

Article 5

The issuance of bonds is based on the need to mobilize capital during each period.

The Government organizes and directs the issuance of national construction bonds according to the Resolution of the National Assembly.

Article 6

1. Bonds include:

a) Bonds denominated and recorded in Vietnamese dong;

b) Bonds denominated and recorded in freely convertible foreign currencies;

c) Bonds denominated and recorded in gold.

2. The type of freely convertible foreign currency, unit of measurement, and quality of gold used to purchase bonds shall be specified by the Government when issuing bonds.

, Clause 1, Clause 2 Article 7a of this Regulation.

Bonds shall be issued in the following forms:

1. Named bonds, unnamed bonds;

2. Pre-denominated bonds, non-pre-denominated bonds.

Article 8

Bonds have terms of five years and ten years.

The specific term of bonds shall be specified by the Government when issuing them.

Article 9

The size, design, patterns, and other characteristics of bonds, printing, storage, and transportation of bonds shall be specified by the Government.

Article 10

1. The State guarantees the value of bonds as follows:

a) Bonds denominated and recorded in Vietnamese dong are guaranteed by the amount recorded on the bond plus the rate of inflation at the time of payment compared to the time of purchase;

b) Bonds denominated and recorded in freely convertible foreign currencies are guaranteed by the foreign currency recorded on the bond;

c) Bonds denominated and recorded in gold are guaranteed by the type of gold recorded on the bond.

2. Bond purchasers shall enjoy an interest rate not lower than 1.5% per year according to the amount of Vietnamese dong, freely convertible foreign currency, or quantity of gold recorded on the bond. The specific interest rate for each issuance of five-year and ten-year bonds shall be specified by the Government.

3. Interest income from bonds as stipulated in Clause 2 of this Article shall not be subject to income tax.

Article 11

1. The Government organizes and directs the payment of bonds to ensure promptness, convenience, and timely payment; bonds shall be paid in full principal and interest at the State Treasury system or other agencies and organizations as specified by the Government.

2. Bonds purchased with Vietnamese dong shall be paid in Vietnamese dong; bonds purchased with freely convertible foreign currencies shall be paid in the same foreign currency at the time of purchase; bonds purchased with gold shall be paid in the same type of gold at the time of purchase.

3. Holders of bonds denominated and recorded in freely convertible foreign currencies who wish to be paid in Vietnamese dong shall be paid according to the exchange rate published by the State Bank of Vietnam at the time of payment recorded on the bond; holders of bonds denominated and recorded in gold who wish to be paid in Vietnamese dong shall be paid according to the market price of the same type of gold at the time of payment recorded on the bond.

Article 12

Bonds may be bought, sold, given as gifts, inherited, or pledged.

Those who repurchase bonds, those who receive gifts or inherit bonds shall be protected by the State in the same manner as bond purchasers; those who receive pledges of bonds shall be protected by the State in the same manner as those who receive pledges of property under the law.

Chapter III

REWARDS AND VIOLATION HANDLING

Article 13

Organizations and individuals with outstanding achievements in purchasing national construction bonds, in promoting the purchase of bonds, and in organizing the issuance of bonds shall be rewarded by the State in accordance with the law.

Article 14

Any person who commits acts of forging bonds, obstructing the issuance or payment of bonds, or other violations of this Ordinance shall be disciplined, administratively punished, or criminally prosecuted depending on the nature and severity of the violation.

Article 15

Any person who takes advantage of their position or authority in the issuance or payment of bonds to embezzle or cause the loss of funds raised through bonds shall be disciplined or criminally prosecuted depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 16

This Ordinance takes effect from the date of publication.

This Ordinance replaces the Ordinance on the Issuance of National Construction Bonds dated November 25, 1983, and the Ordinance Amending and Supplementing Certain Provisions of the Ordinance on the Issuance of National Construction Bonds dated May 30, 1985.

All previous regulations that conflict with this Ordinance are hereby abolished.

Article 17

The Government shall specify detailed implementation and guidance for this Ordinance.