Decree No. 131/2005/ND-CP Amending and Supplementing Certain Provisions of Decree No. 63/1998/ND-CP dated August 17, 1998 of the Government on Foreign Exchange Management

DECREE

Amending and supplementing certain articles of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Articles of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

At the proposal of the Governor of the State Bank of Vietnam,

DECREE:

Article 1. Amending and supplementing certain articles of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government as follows:

1. Chapter III (foreign trade transactions) shall be supplemented with Article 11.a as follows:

"Article 11.a. Principles for liberalizing foreign trade transactions. Within the territory of Vietnam, payments and transfers related to foreign trade transactions may be freely conducted."

2. Clause 11 of Article 4 shall be amended and supplemented as follows:

"11. Payments and transfers for international foreign trade transactions under this Decree include:
a) Payments related to import and export of goods and services, other foreign trade transactions, short-term credit and banking loans;
b) Payments for net income from direct and indirect investment, depreciation of direct investment capital (if applicable);
c) Payments for interest and principal repayment of foreign loans;
d) One-way transfers for consumption purposes and similar transactions."

3. Article 14 shall be amended and supplemented as follows:

"Article 14. One-way transfers from Vietnam to abroad in foreign trade transactions.
1. Non-residents and residents may purchase, transfer, and carry foreign currency out of the country for legitimate foreign trade payment needs without presenting documents confirming the completion of tax obligations to the State of Vietnam.
2. Non-residents and residents who are foreigners holding foreign currency may transfer it out of the country when needed. In cases where there is lawful income in Vietnamese dong, they may purchase foreign currency at authorized banks to transfer out of the country.
3. Residents who are Vietnamese citizens may purchase, transfer, and carry foreign currency out of the country for legitimate uses such as tourism, study, medical treatment, hardship assistance, inheritance, and settlement as stipulated by the State Bank of Vietnam.
4. The Governor of the State Bank of Vietnam shall examine and resolve cases of purchasing, transferring, and carrying foreign currency exceeding the limit (if any) based on reviewing relevant documents proving the necessity of the transaction."

Article 2. Implementation clause

1. This Decree shall take effect fifteen days after its publication in the Official Gazette.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.