Decision No. 170/1999/QĐ-TTg On Encouraging Overseas Vietnamese to Transfer Money Back to Vietnam.

Pursuant to …;

Regarding Encouraging Overseas Vietnamese to Transfer Money Back to Vietnam

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THE PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

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

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

DECISION:

Article 1. The Government encourages and creates conditions for Overseas Vietnamese to transfer foreign currency back to Vietnam in accordance with Vietnamese law and the laws of countries where Vietnamese reside and have a need to send money back home.

Foreign individuals transferring money from abroad into Vietnam for the purpose of assisting family members, relatives, or other charitable purposes are also encouraged and shall be treated similarly to Overseas Vietnamese under this Decision.

Article 2. Definitions

In this Decision, the following terms are understood as follows:

1. Foreign currency as defined in this Decision refers to freely convertible foreign currencies.

2. Beneficiary means a person within Vietnam who receives the foreign currency transferred from Overseas Vietnamese or foreign individuals from abroad.

3. Authorized credit institution means a credit institution in Vietnam permitted by the State Bank of Vietnam to conduct foreign exchange operations.

4. Financial service international postal enterprises are enterprises licensed by the General Post Office Administration to provide international financial postal services.

5. International financial postal services include forms of international money transfers and international postal money orders.

Article 3. Application of international treaties

In cases where international treaties to which the Socialist Republic of Vietnam is a party contain provisions related to the transfer of foreign currency from abroad into Vietnam that differ from the provisions of this Decision, such transfers shall be governed by the provisions of the international treaty.

Article 4. Forms of transferring foreign currency from abroad into Vietnam

Overseas Vietnamese and foreign individuals may transfer foreign currency from abroad into Vietnam through the following methods:

1. Through authorized credit institutions;

2. Through enterprises providing international financial postal services;

3. Individuals carrying it with them upon entry into Vietnam.

When entering Vietnam, individuals from abroad who bring foreign currency on behalf of Overseas Vietnamese must declare to customs the amount of foreign currency they are bringing into the country for the benefit of beneficiaries within Vietnam.

1. Authorized credit institutions.

2. Enterprises providing international postal financial services.

3. Economic organizations permitted by the State Bank of Vietnam to perform foreign currency receipt and payment services or economic organizations acting as agents for credit institutions to carry out foreign currency payments within the country.

Article 6. Rights of Beneficiaries

1. To receive in foreign currency or Vietnamese dong according to their request.

2. In case of receiving in foreign currency, the beneficiary may sell it to authorized credit institutions, deposit it into a personal foreign currency savings account, and use it according to current regulations on foreign exchange management, deposit it into a foreign currency savings account at authorized credit institutions, or use it for other purposes as stipulated by Vietnamese law.

3. Not required to pay income tax on foreign currency transferred from abroad.

Article 7. Responsibilities and Authorities of the State Bank of Vietnam

1. Coordinate with ministries, sectors to widely publicize policies encouraging the transfer of foreign currency back to Vietnam.

2. Specify conditions and procedures for issuing licenses for foreign currency receipt and payment services; set rates for remittance fees; direct authorized organizations to improve procedures to facilitate beneficiaries.

3. Issue licenses to economic organizations meeting the conditions for foreign currency receipt and payment services and revoke licenses or issue decisions suspending operations for a period for authorized credit institutions and economic organizations that violate the provisions of this Decision.

Article 8. Responsibilities of relevant Ministries and sectors

1. Ministries, ministerial-level agencies, government-affiliated agencies, and provincial people's committees directly under the central government within their respective functions and powers are responsible for coordinating with the State Bank of Vietnam to manage foreign currency receipt and payment services.

2. The General Customs Department and Vietnam Posts and Telecommunications Corporation are responsible for reporting to the State Bank of Vietnam on the situation of foreign currency transfers into Vietnam so that the State Bank can compile reports to the Prime Minister. Reporting figures and situations of foreign currency transfers into Vietnam shall be conducted quarterly and in accordance with the State Bank's regulations.

Article 9. Handling Violations

Organizations and individuals violating foreign currency receipt and payment activities will be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation, and if damage is caused, they must compensate according to the law.

Article 10. Implementation Provisions

1. This Decision takes effect fifteen days from the date of signing. Previous regulations contrary to this Decision are abolished.

2. The Governor of the State Bank of Vietnam is responsible for guiding the implementation of this Decision.

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for enforcing this Decision.