Decision No. 1437/2001/QD-NHNN On Issuing Regulations on Purchasing, Transferring, and Taking Foreign Currency Out of the Country by Resident Citizens of Vietnam

Pursuant to …;

Regarding the issuance of regulations on purchasing, transferring, and carrying foreign currency out of the country by resident citizens who are Vietnamese nationals

Regarding the purchasing, transferring, and carrying foreign currency out of the country by resident citizens who are Vietnamese nationals

______________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997;

Pursuant to Decree No. 15/1993/NĐ-CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

Pursuant to Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management;

At the proposal of the Director of the Foreign Exchange Management Department,

Pursuant to …;

Article 1. This Decision promulgates "Regulations on Purchasing, Transferring, and Carrying Foreign Currency Out of the Country by Resident Citizens Who Are Vietnamese Nationals."

Article 2. This Decision takes effect from January 1, 2002. The provisions at Section I Chapter IV Part Three, Section I Chapter V Part Four of Circular No. 01/1999/TT-NHNN dated April 16, 1999 of the State Bank guiding the implementation of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management and Clause 1 Article 1 of Decision No. 19/2001/QĐ-NHNN dated January 12, 2001 of the Governor of the State Bank on delegating authority to the Director of the State Bank Branch in Ho Chi Minh City to perform certain foreign exchange management tasks in southern provinces and cities cease to be effective.

Article 3. The Head of the Office, Heads of Departments under the State Bank, Heads of Units under the State Bank, Directors of State Bank Branches in provincial and centrally-administered city levels, General Managers (Directors) of permitted banks shall be responsible for implementing this Decision.

REGULATIONS

ON PURCHASING, TRANSFERRING, AND CARRYING FOREIGN CURRENCY OUT OF THE COUNTRY BY RESIDENT CITIZENS WHO ARE VIETNAMESE NATIONALS
(Issued together with Decision No. 1437/2001/QĐ-NHNN dated November 19, 2001 of the Governor of the State Bank)

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of application

These regulations govern the purchasing, transferring, and carrying of foreign currency out of the country by resident citizens who are Vietnamese nationals (hereinafter referred to as Vietnamese nationals) for the following purposes:

1. Expenses for education and medical treatment for themselves or their relatives;

2. Business trips, tourism, and visiting abroad;

3. Payment of fees to foreign countries;

4. Providing financial assistance to relatives residing abroad;

5. Transferring inheritance money to heirs residing abroad;

6. Moving to reside abroad.

Article 2. Livestock for slaughter includes: cattle, buffalo, goats, sheep, pigs, horses, donkeys, camels, and other livestock used for food;

In this Regulation, the following terms shall be understood as follows:

1. Foreign currency: is the currency of foreign countries. In this document, the amounts of foreign currency that can be purchased, transferred, and carried are specified in US dollars. If Vietnamese nationals have a need to transfer or carry other types of foreign currency, they will be converted to US dollars of equivalent value.

2. Purchasing foreign currency: is the act of Vietnamese nationals using Vietnamese dong to purchase foreign currency at permitted banks for the purposes stipulated in Article 1 based on presenting the relevant documents as prescribed in these regulations.

3. Transferring foreign currency: is the act of Vietnamese nationals transferring foreign currency out of the country through permitted banks.

4. Carrying foreign currency: is the act of Vietnamese nationals carrying foreign currency in cash (including: banknotes, coins, travel checks, and similar payment instruments) out of the country when exiting the country.

5. Amount subject to customs declaration: is the amount of foreign currency set by the Governor of the State Bank for each period applicable to carrying foreign currency in cash when entering and exiting the country. Individuals carrying more than this amount must declare to customs.

6. Permit to transfer foreign currency: is a permit issued by the State Bank to Vietnamese nationals to transfer foreign currency from the amount subject to customs declaration upwards. This permit is used to purchase and transfer foreign currency at permitted banks (the form of the permit is specified in Appendix II and Appendix III).

7. Permit to carry foreign currency: is a permit issued by the State Bank to Vietnamese nationals to carry foreign currency from the amount subject to customs declaration upwards for the entire amount carried when exiting the country. This permit is used to purchase foreign currency in cash at permitted banks and presented to customs when carrying foreign currency through the border gate (the form of the permit is specified in Appendix IV).

8. Relatives: are those individuals having the following relationships: biological parents, adopted parents, spouse, biological children, adopted children, full siblings with Vietnamese nationals applying to transfer or carry foreign currency.

9. Documents proving relationship with relatives: are one of the following documents: certified copy of birth certificate, certified copy of household registration book, certified copy of marriage certificate, confirmation from an agency or local government confirming the relationship. In cases of adopted parents or adopted children, there must be confirmation from the competent state management agency according to the law.

10. Notice of expenses: is one of the following documents: document, receipt, invoice from the foreign side notifying about expenses related to education, medical treatment, and other expenses in the form of original or copy or fax. The notice must be translated into Vietnamese. If necessary, the bank may request Vietnamese nationals to present the original.

11. Order for periodic money transfer: is a document of Vietnamese nationals requesting permitted banks to transfer a certain amount of foreign currency from their account to another account abroad at a specific time during the year. When transferring foreign currency to heirs or for the purpose of residing abroad, Vietnamese nationals only need to submit an application for permission to transfer foreign currency once for the entire amount to be transferred. Subsequent transfers will be carried out according to the agreed upon periodic money transfer order between Vietnamese nationals and permitted banks without needing permission from the State Bank.

Article 3. Sources of foreign currency for transfer and carrying out of the country:

Vietnamese nationals permitted by banks in accordance with Article 12 of these regulations to transfer and carry foreign currency for the purposes stated in Article 1 of these regulations may use foreign currency on deposit accounts, savings deposits, self-held foreign currency, and foreign currency purchased from permitted banks to transfer and carry out of the country.

Article 4. Rights to purchase, transfer, and carry foreign currency:

1. Below the amount subject to customs declaration: Vietnamese nationals who need to use foreign currency for the purposes stated in Article 1 of these regulations may contact permitted banks and present relevant documents to:

a. Transfer foreign currency from sources of foreign currency on deposit accounts, savings deposits, self-held foreign currency;

b. Purchase foreign currency from permitted banks and transfer foreign currency;

c. Purchase foreign currency in cash to carry out of the country.

2. From the level requiring declaration to Customs onwards: Vietnamese citizens who need to use foreign currency for the purposes set out in Article 1 of this Regulation must contact the State Bank in accordance with the authority prescribed in Article 12 of this Regulation to apply for transferring or carrying foreign currency. Based on the Permit for Transferring or Carrying Foreign Currency issued by the State Bank, Vietnamese citizens are entitled to:

a. In case of being granted a Permit for Transferring Foreign Currency: Vietnamese citizens may contact authorized banks to:

- Transfer foreign currency from sources of foreign currency on deposit accounts, savings deposits in foreign currency, and self-held foreign currency;

- Purchase and transfer foreign currency.

b. In case of being granted a Permit for Carrying Foreign Currency: Vietnamese citizens are entitled to:

- Carry foreign currency in cash from sources of foreign currency on deposit accounts, savings deposits in foreign currency, and self-held foreign currency;

- Contact authorized banks to purchase foreign currency in cash to carry abroad.

3. Based on their current sources of foreign currency, authorized banks may examine and have the right to decide the extent of meeting Vietnamese citizens' demand for purchasing foreign currency to transfer or carry abroad for permitted purposes as stipulated in Article 1 of this Regulation.

Chapter 2

SPECIFIC PROVISIONS

Article 5. Transferring or carrying foreign currency for study abroad:

1. Vietnamese citizens who wish to transfer or carry foreign currency to pay tuition fees, living expenses, and other related costs during their studies abroad for themselves must contact banks in accordance with the authority prescribed in Article 12 of this Regulation to process the procedures for transferring or carrying foreign currency based on submitting the following documents:

a. Application for Transferring or Carrying Foreign Currency (Annex I);

b. Notification of expenses from the overseas educational institution (hereinafter referred to as the educational institution). In cases where the notification is not sent directly to the student, Vietnamese citizens must submit along with it an Acceptance Letter from the overseas educational institution or proof of studying abroad;

c. Copy of passport.

The amount of foreign currency allowed to be transferred or carried abroad is based on the expense level according to the notification of expenses from the overseas educational institution.

If the overseas educational institution does not provide a notification regarding food, accommodation, living expenses, and other related costs, in addition to the tuition fee already notified, Vietnamese citizens are allowed to transfer or carry an additional maximum of up to 5,000 USD per student per year.

2. Vietnamese citizens who wish to transfer or carry foreign currency for relatives studying abroad must, in addition to the documents specified in point a and b of clause 1 of this Article, submit the following additional documents:

a. Proof of kinship;

b. Copy of identification card (for applications to transfer foreign currency) or copy of passport (for applications to carry foreign currency).

3. Persons authorized by Vietnamese citizens to carry foreign currency for relatives studying abroad must, in addition to the documents specified in point a and b of clause 1 of this Article, submit the following additional documents:

a. Proof of kinship of the authorizing person;

b. Power of Attorney;

c. Copy of passport of the authorized person.

4. Vietnamese citizens may authorize a business with functions of consulting and international education services to contact banks in accordance with the authority prescribed in Article 12 of this Regulation to apply for transferring foreign currency. The application for transferring foreign currency includes:

a. A document from the business applying to transfer foreign currency. The document must include the following contents:

- List of students;

- Amount of foreign currency requested to be transferred for each student;

- Destination of foreign currency transfer for each student.

b. Notification from the overseas educational institution about the expenses of each student. In cases where the notification does not specify the expenses of each student, the business must submit along with it an Acceptance Letter from the overseas educational institution or proof of studying abroad;

c. Copy of passport (for those who have not yet started studying);

d. Power of Attorney between Vietnamese citizens and the business regarding the Vietnamese citizens authorizing the business to handle the procedures for transferring foreign currency;

đ. Certified copy of Business Registration Certificate (for first-time applications).

Article 6. Transferring or carrying foreign currency for medical treatment abroad:

1. Vietnamese citizens who wish to transfer or carry foreign currency to pay hospital fees, living expenses, and other related costs during their medical treatment abroad may contact banks in accordance with the authority prescribed in Article 12 of this Regulation to process the procedures for transferring or carrying foreign currency based on submitting the following documents:

a. Application for Transferring or Carrying Foreign Currency (Annex I);

b. Receipt for medical examination and treatment from the overseas healthcare facility or Referral Letter for Overseas Medical Treatment from domestic healthcare facilities;

c. Notification of expenses or estimated expenses from the overseas healthcare facility;

d. Copy of passport of the patient.

The amount of foreign currency allowed to be transferred or carried abroad is based on the expense level according to the notification of expenses from the overseas healthcare facility.

If the overseas healthcare facility does not provide a notification regarding food, accommodation, living expenses, and other related costs, in addition to the hospital fee already notified, Vietnamese citizens are allowed to transfer or carry an additional maximum of up to 10,000 USD for one patient per trip.

If there is no notification of expenses from the overseas healthcare facility, Vietnamese citizens are allowed to carry the aforementioned 10,000 USD to cover initial costs, and then must work with the overseas healthcare facility to obtain a Notification of Expenses as the basis for transferring or carrying foreign currency in accordance with clauses 2 or 3 of this Article.

2. In cases where Vietnamese citizens transfer or carry foreign currency for relatives receiving medical treatment abroad, in addition to the documents specified in point a and b of clause 1 of this Article, they must submit the following additional documents:

a. Proof of kinship;

b. Copy of identification card (for applications to transfer foreign currency) or copy of passport (for applications to carry foreign currency).

3. Persons authorized by Vietnamese citizens to carry foreign currency for relatives receiving medical treatment abroad must, in addition to the documents specified in point a and b of clause 1 of this Article, submit the following additional documents:

a. Proof of kinship of the authorizing person;

b. Power of Attorney;

c. Copy of passport of the authorized person.

Article 7. Transferring or carrying foreign currency for payment of various fees and charges to foreign countries:

Vietnamese citizens who wish to transfer or carry foreign currency to pay various fees and charges (membership fees, application processing fees, visa fees, and other fees and charges) to foreign countries may contact the Bank as prescribed in Article 12 of this Regulation to process the transfer or carrying of foreign currency based on submitting the following documents:

1. Application for transferring or carrying foreign currency (Annex I);

2. Notification of foreign country's expenses;

3. A copy of the citizen identification card (for cases of transferring foreign currency) or a copy of the passport (for cases of carrying foreign currency).

The amount of foreign currency that can be transferred or carried out of the country shall be based on the level of expenses notified by the foreign country.

Article 8. Transferring or carrying foreign currency for the purpose of working abroad, traveling, or visiting relatives in foreign countries:

1. Vietnamese citizens going abroad for work who wish to transfer foreign currency may contact the Bank as prescribed in Article 12 of this Regulation to process the transfer of foreign currency based on presenting the following documents:

Application for transferring foreign currency (Annex I);

Notification of foreign country's expenses;

c. A copy of the citizen identification card.

The amount of foreign currency allowed to be transferred out of the country shall be based on the level of expenses notified by the foreign country.

2. Vietnamese citizens traveling or visiting relatives in foreign countries who wish to carry foreign currency may carry up to the maximum amount required to declare to Customs for a single exit without needing to obtain permission from the State Bank.

Article 9. Transferring or carrying foreign currency to provide financial support to relatives abroad:

1. Vietnamese citizens who wish to transfer or carry foreign currency to provide financial support to relatives residing abroad may contact the State Bank Branch in their province or city to process the transfer or carrying of foreign currency based on submitting the following documents:

Application for transferring or carrying foreign currency (Annex I);

b. Documents proving the familial relationship;

c. Documents proving that the recipient of the support is residing abroad;

d. A copy of the citizen identification card (for cases of transferring foreign currency) or a copy of the passport (for cases of carrying foreign currency).

2. The State Bank Branch in the province or city will issue a permit for transferring or carrying foreign currency once a year for Vietnamese citizens providing support to relatives, but not exceeding 5,000 USD for each recipient of support.

Article 10. Transferring or carrying foreign currency for heirs residing abroad:

1. Vietnamese citizens representing heirs residing abroad may contact the Bank as prescribed in Article 12 of this Regulation to process the transfer or carrying of foreign currency based on submitting the following documents:

a. Application for Transferring or Carrying Foreign Currency (Annex I);

b. Original or certified copy of the document issued by the competent authority regarding inheritance division or will, or agreement among lawful heirs;

c. Power of attorney document from the heir (certified or authenticated) or proof of legal representative status of the person applying to transfer or carry foreign currency.

d. A copy of the citizen identification card (for cases of transferring foreign currency) or a copy of the passport (for cases of carrying foreign currency).

2. Vietnamese citizens representing heirs residing abroad may transfer or carry a maximum of 10,000 USD or 20% of the total inherited amount if it exceeds 50,000 USD annually. In cases where the requested amount exceeds 50,000 USD, Vietnamese citizens must present documents proving possession of the requested amount for inheritance purposes.

The remaining amount (in Vietnamese dong or foreign currency) may be deposited with a permitted bank to gradually transfer (including principal and accrued interest) in subsequent years according to the agreed-upon Standing Order between the permitted bank and the person requesting the transfer of foreign currency, but not exceeding the specified limit annually. If deposited in Vietnamese dong, Vietnamese citizens may purchase foreign currency at the selling rate of the permitted bank at the time of the foreign currency transfer as agreed upon between the permitted bank and the person requesting the transfer of foreign currency in the Standing Order.

Article 11. Transferring or carrying foreign currency for the purpose of settling abroad:

1. Vietnamese citizens permitted to settle abroad who wish to transfer or carry foreign currency may contact the Bank as prescribed in Article 12 of this Regulation to process the transfer or carrying of foreign currency based on presenting the following documents:

a. Application for Transferring or Carrying Foreign Currency (Annex I);

b. A copy of the document issued by the competent authority of the foreign country allowing settlement, accompanied by a certified translation or proof of permission for Vietnamese citizens to settle abroad;

c. A copy of the passport of the person emigrating.

2. Vietnamese citizens may transfer or carry a maximum of 10,000 USD annually for each person emigrating or 20% of the total amount for each person emigrating if the total amount transferred or carried exceeds 50,000 USD. In cases where the requested amount exceeds 50,000 USD, Vietnamese citizens must present documents proving possession of the requested amount for settlement purposes.

The remaining amount (in Vietnamese dong or foreign currency) may be deposited with a permitted bank to gradually transfer (including principal and accrued interest) in subsequent years according to the agreed-upon Standing Order between the permitted bank and the person requesting the transfer of foreign currency, but not exceeding the specified limit annually. If deposited in Vietnamese dong, Vietnamese citizens may purchase foreign currency at the selling rate of the permitted bank at the time of the foreign currency transfer as agreed upon between the permitted bank and the person requesting the transfer of foreign currency in the Standing Order.

Chapter 3

IMPLEMENTATION

Article 12. Authority to allow Vietnamese citizens to purchase, transfer, or carry foreign currency out of the country:

Vietnamese citizens wishing to transfer or carry foreign currency for the purposes prescribed in Article 1 of this Regulation from foreign currency in deposit accounts, savings deposits, self-held foreign currency, or foreign currency purchased from a permitted bank may contact the Bank with the authority prescribed below to process the transfer or carrying of foreign currency:

1. Permitted Bank: The General Director (Director) of the permitted Bank or a person authorized by the General Director (Director) may approve the request of Vietnamese citizens to purchase or transfer foreign currency under 5,000 USD (except for cases of providing financial support to relatives abroad).

2. Branches of the State Bank of Vietnam under provincial and centrally governed city authorities: The Director of the State Bank of Vietnam's branch under provincial and centrally governed city authorities shall grant permission to Vietnamese citizens residing within their jurisdiction to transfer or carry foreign currency for cases requesting to transfer or carry foreign currency at or above the amount required to be declared to Customs and for cases requesting to transfer or carry foreign currency to provide financial support to relatives abroad.

3. For cases requesting to transfer or carry foreign currency that do not fall under the purposes specified in Article 1 of this Regulation, the branches of the State Bank of Vietnam under provincial and centrally governed city authorities shall accept applications, review them, and submit recommendations (along with the application files) to the Department of Foreign Exchange Management - State Bank of Vietnam Central Office for the Governor to resolve.

Article 13. Examination of application files

1. Sale and transfer of foreign currency:

a. When selling and transferring foreign currency to Vietnamese citizens in amounts below the amount required to be declared to Customs, the authorized bank shall be responsible for examining the application file for each purpose specified in Chapter II of this Regulation.

b. When selling and transferring foreign currency to Vietnamese citizens in amounts at or above the amount required to be declared to Customs, the authorized bank must base its actions on the foreign currency transfer permit issued by the State Bank of Vietnam's branch under provincial and centrally governed city authorities.

In cases where Vietnamese citizens must use the foreign currency purchase and transfer permit issued by the State Bank of Vietnam to make multiple purchases and transfers at different authorized banks, when selling and transferring foreign currency to Vietnamese citizens, the authorized banks must record the amount of foreign currency sold and transferred and stamp the permit issued by the State Bank of Vietnam's branch under provincial and centrally governed city authorities. The total amount of foreign currency purchased and transferred at various banks must be within the limit allowed by the State Bank of Vietnam's branch under provincial and centrally governed city authorities.

2. Sale of foreign currency in cash:

a. When selling foreign currency in cash to Vietnamese citizens in amounts below the amount required to be declared to Customs, the authorized bank shall be responsible for checking the passport and passenger transport documents and must record the amount of foreign currency sold and stamp the passenger transport document stub.

b. When selling foreign currency in cash to Vietnamese citizens in amounts at or above the amount required to be declared to Customs, the authorized bank must base its actions on the foreign currency carrying permit issued by the State Bank of Vietnam's branch under provincial and centrally governed city authorities.

In cases where Vietnamese citizens must use the foreign currency carrying permit issued by the State Bank of Vietnam's branch under provincial and centrally governed city authorities to make multiple purchases at different authorized banks, when selling foreign currency to Vietnamese citizens, the authorized banks must record the amount of foreign currency sold and stamp the permit issued by the State Bank of Vietnam's branch under provincial and centrally governed city authorities. The total amount of foreign currency purchased at various banks must be within the limit allowed by the State Bank of Vietnam's branch under provincial and centrally governed city authorities.

Article 14. Time limit for issuing permits:

Within ten working days from the date of receipt of a complete set of application files, the authorized bank or the State Bank of Vietnam's branch under provincial and centrally governed city authorities (as stipulated in Article 12 of this Regulation) shall approve or issue a permit to Vietnamese citizens to transfer or carry foreign currency out of the country. If the application is rejected, the reason for rejection must be notified to the applicant.

Article 15. Registration of seals and signatures

The State Bank of Vietnam's branches under provincial and centrally governed city authorities must register the seals and signatures of the persons authorized to issue foreign currency carrying permits for Vietnamese citizens with the General Department of Customs for monitoring and supervision.

Article 16. Reporting System

1. Quarterly, no later than the 25th day of the last month of each quarter, the authorized banks shall report on the situation of selling and transferring foreign currency to Vietnamese citizens (Annex V) to the State Bank of Vietnam's branch under provincial and centrally governed city authorities within their jurisdiction.

2. Quarterly, no later than the 30th day of the last month of each quarter, the State Bank of Vietnam's branches under provincial and centrally governed city authorities shall compile reports on the issuance of foreign currency carrying and transfer permits and the situation of selling and transferring foreign currency to Vietnamese citizens within their jurisdiction (Annex VI) to the State Bank of Vietnam (Department of Foreign Exchange Management).

Article 17. Handling Violations

Organizations and individuals violating this Regulation shall be subject to administrative penalties or criminal liability, depending on the nature and severity of the violation, as provided by law.

Article 18. Amendment and supplementation of the Regulation

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