This decision amends Clause 1 of Article 1 of Decision No. 173/1998/QĐ-TTg regarding the obligation to sell and right to buy foreign currency for resident organizations, stipulating that Vietnamese economic organizations, enterprises with foreign investment capital, and foreign parties participating in joint venture contracts must immediately sell at least 50% of the foreign currency received from current account receipts to authorized banks.
Scope of application
Resident organizations include Vietnamese economic organizations, enterprises with foreign investment capital, and foreign parties participating in joint venture contracts; branches of foreign companies, foreign contractors, and foreign contractor consortia.
Key points
- Vietnamese economic organizations, enterprises with foreign investment capital, and foreign parties participating in joint venture contracts must immediately sell at least 50% of the foreign currency received from current account receipts to authorized banks (Article 1).
- Branches of foreign companies, foreign contractors, and foreign contractor consortia also must fulfill a similar obligation to sell foreign currency.
- The Governor of the State Bank of Vietnam is responsible for guiding the implementation of this Decision (Article 2).
- This Decision takes effect from the date of issuance (Article 2).
- Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and municipal People's Committees must implement this Decision (Article 3).
🌐 Social impact of this document
- Strengthen foreign exchange management and ensure domestic foreign currency balance.
- Reduce free circulation of foreign currency and limit unnecessary use of foreign currency.
- This may cause difficulties for Vietnamese economic organizations and enterprises with foreign investment capital in managing cash flow.
❓ Frequently asked questions
Which resident organization must sell foreign currency?
Resident organizations include Vietnamese economic organizations, enterprises with foreign investment capital, and foreign parties participating in joint venture contracts.
What is the minimum percentage of foreign currency that must be sold to authorized banks?
At least 50% of the foreign currency received from current account receipts.
Which bank has the right to buy foreign currency?
Authorized banks as prescribed by the State Bank of Vietnam.
Full text
DECISION
Amending Clause 1 of Article 1 of Decision No. 173/1998/QĐ-TTg dated September 12, 1998
of the Government Chairman on the obligation to sell and right to buy foreign currency for resident organizations
__________
THE CHAIRMAN OF THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated September 30, 1992;
To implement Article 12 and Clause 1, Clause 2 of Article 13 of 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.
DECIDES:
Article 1. Amends Clause 1 of Article 1 of Decision No. 173/1998/QĐ-TTg dated September 12, 1998 of the Government Chairman on the obligation to sell and right to buy foreign currency for resident organizations as follows:
Resident organizations are Vietnamese economic entities, enterprises with foreign investment, and foreign parties participating in joint business contracts guaranteed by the Vietnamese government for foreign exchange balance support, and branches of foreign companies, foreign contractors, and foreign consortium contractors must immediately sell at least 50% of the foreign currency received from current account revenues to authorized banks.
Article 2. This Decision takes effect as of the date of signature. The Governor of the State Bank of Vietnam is responsible for guiding the implementation of this Decision.
Article 3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and centrally-run city People's Committees are responsible for implementing this Decision.
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