Decision No. 28/2004/QD-BTC issued Government bonds for the second round in 2004 to invest in some important transportation and irrigation projects of the country.

DECISION OF THE MINISTER OF FINANCE

Regarding the issuance of the second tranche of Government bonds in 2004 for investment in certain important transportation and water conservancy projects 

THE MINISTER OF FINANCE

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 235/2003/QD-TTg dated November 13, 2003 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;

Pursuant to Decree No. 141/2003/ND-CP dated November 20, 2003 of the Government on the issuance of Government bonds, Government-guaranteed bonds, and local government bonds;

Pursuant to Decision No. 182/2003/QD-TTg dated September 5, 2003 of the Prime Minister on the issuance of Government bonds for investment in certain important transportation and irrigation projects of the country;

At the proposal of the Director General of the State Treasury,

DECISION:

Article 1: Issuing the second tranche of Government bonds in 2004 for investment in constructing certain important transportation and water conservancy projects with a total amount of 8,200 billion Vietnamese dong and 50 million US dollars (USD).

Article 2. Government bonds (hereinafter referred to as bonds) shall be issued and paid in Vietnamese dong and US dollars, in the form of certificates or book-entry.

The certificates of bonds denominated in Vietnamese dong include both registered and bearer types; printed denominations include: 100,000 dong, 200,000 dong, 500,000 dong, 1,000,000 dong, 2,000,000 dong, 5,000,000 dong, 10,000,000 dong, 20,000,000 dong, 50,000,000 dong, 100,000,000 dong.

The certificates of bonds denominated in US dollars include both registered and bearer types; printed denominations include: 500 USD, 1,000 USD, 5,000 USD, 10,000 USD.

Article 3.Method of issuing bonds:

3.1- Issuance through the State Treasury system:

Bonds denominated in Vietnamese dong will be issued at all units of the State Treasury throughout the country.

Bonds denominated in US dollars will be issued at the State Treasury of Hanoi, the State Treasury of Ho Chi Minh City, the State Treasury of Hai Phong, the State Treasury of Quang Ninh, the State Treasury of Da Nang, and the State Treasury of Ba Ria-Vung Tau.

a- The subjects eligible to purchase bonds include organizations and citizens of Vietnam; overseas Vietnamese; foreigners working and residing in Vietnam; foreign organizations operating on Vietnamese territory; except for those subjects who are guarantors and bidders for the bonds (including bidding for bonds denominated in Vietnamese dong through the Stock Exchange Trading Center and bidding for bonds denominated in US dollars through the State Bank of Vietnam's Trading Department).

Vietnamese organizations may not use state budget funds to purchase bonds.

b- Term of bonds: 5 years.

c- Interest rate on bonds: To be determined by the Minister of Finance at the time of issuance.

d- Issuance period: from April 15, 2004, and ending before June 15, 2004.

3.2- Auctioning bonds denominated in Vietnamese dong through the Stock Exchange Trading Center:

a- The subjects eligible to participate in the auction of bonds are members of the bond auction market through the Stock Exchange Trading Center. Organizations and individuals wishing to purchase bonds through the auction must register with the members of the bond auction market and organizations trading on the securities market.

b- Term of bonds: 5 years and 10 years.

c- Interest rate of the bonds: determined based on the auction results.

d- Issuance period: from April 15, 2004, and ending before December 15, 2004.

3.3- Auctioning bonds denominated in US dollars through the State Bank of Vietnam:

a- Subjects eligible to participate in bond bidding are credit institutions in Vietnam that are permitted to engage in foreign exchange transactions and have foreign currency accounts with the State Bank of Vietnam.

b- Term of bonds: 5 years and 10 years.

c- Interest rate of the bonds: determined based on the auction results.

d- Issuance period: from April 15, 2004, and ending before December 15, 2004.

3.4- Guaranteeing the issuance of bonds denominated in Vietnamese dong:

a- Subjects eligible to participate in guaranteeing the issuance of bonds are organizations permitted to guarantee bond issuance according to current regulations.

b- Term of bonds: 5 years and 10 years.

c- The interest rate on bonds and the fee for guaranteeing issuance shall be agreed upon between the guarantor organizations and the State Treasury in accordance with current regulations.

d- Issuance period: from April 15, 2004, and ending before December 15, 2004.

Article 4. Principles and methods of principal and interest payment for bonds:

4.1- Bonds shall be paid in accordance with the currency issued.

4.2- Bonds denominated in Vietnamese dong:

Unregistered type, pre-printed denomination, issued through the State Treasury: payable at all State Treasury units throughout the country.

Registered type, pre-printed denomination; issued through the State Treasury of provinces and cities: payable at the State Treasury where they were issued.

Bonds auctioned through the Stock Exchange Trading Center and guaranteed for issuance, listed at the Stock Exchange Trading Center: payment shall be carried out jointly by the Stock Exchange Trading Center and the State Treasury.

4.3- Bonds denominated in US dollars:

Issued through the State Treasury of Hanoi, the State Treasury of Ho Chi Minh City, the State Treasury of Hai Phong, the State Treasury of Quang Ninh, the State Treasury of Da Nang, and the State Treasury of Ba Ria-Vung Tau (including both registered and unregistered types, pre-printed denominations): payable at the State Treasury where they were issued.

Auctioned through the State Bank of Vietnam: the State Bank of Vietnam's Trading Department acts as an agent for the Ministry of Finance to pay the bonds when due.

4.4- Principal repayment of bonds: the principal of the bonds shall be repaid once upon maturity.

In case the owner of the bonds is an individual and encounters special difficulties or force majeure requiring early redemption, confirmation from the local authority of residence or the competent agency where they work is required; the General Director of the State Treasury shall examine and report to the Minister of Finance for early redemption. Bonds that have not reached their interest-bearing period will not accrue interest.

4.5- Interest payment of bonds: interest on the bonds shall be paid annually when twelve months have passed since the date of purchase.

Upon maturity for principal or interest payment, if the bond owner has not come to make the payment, the principal or interest amount shall be reserved for repayment when the owner requests it; no compound interest or interest during the overdue period shall be calculated.

Article 5. The owner of the bond has the rights and enjoys the following benefits:

5.1- Transfer, gift, inheritance, or pledge in credit relationships.

5.2- Purchase and trade bonds through the Stock Exchange Trading Center for bonds listed at the Stock Exchange Trading Center.

5.3- Bond owners who are credit institutions may trade bonds in the money market; discount and rediscount bonds according to the regulations of the State Bank of Vietnam.

5.4- Individual bond owners are exempt from personal income tax on interest income from bonds and price differences from buying and selling bonds; if necessary, they can deposit their bond certificates at State Treasury units for safekeeping free of charge.

Article 6. The Director General of the State Treasury is responsible for:

6.1- Organize the issuance and payment of bonds in accordance with Articles 3 and 4 of this Decision.

6.2- Proactively manage the volume, term, and interest rate of bond issuance according to the auction and guarantee methods stipulated in Points 3.2, 3.3, and 3.4 of Article 3 of this Decision within the approved volume, term, and interest rate range by the Minister of Finance and in line with capital usage needs.

6.3- Implement accounting records, reporting, and settlement of bond revenue and bond payments according to prescribed regulations.

Article 7. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

The General Director of the State Treasury shall provide detailed guidance and direct implementation throughout the State Treasury system, heads of relevant units under and directly affiliated with the Ministry of Finance, Directors of Provincial and Municipal Departments of Finance and State Treasuries shall be responsible for implementing this Decision./.