Circular No. 31/2018/TT-NHNN guiding foreign exchange management for overseas investment in oil and gas activities.

CIRCULAR

Guidelines on foreign exchange management for overseas investment

in oil and gas activities

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Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 2010 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated November 20, 2017;

On the basis of the Investment Law dated November 26, 2014 and the Law Amending and Supplementing Article 6 and Appendix 4 on the List of Business Sectors and Trades Subject to Conditions of the Investment Law dated November 22, 2016;

Pursuant to the Foreign Exchange Decree dated December 13, 2005 and the Decree Amending and Supplementing Certain Articles of the Foreign Exchange Decree dated March 18, 2013;

Pursuant to Decree No. 124/2017/NĐ-CP dated November 15, 2017 of the Government on overseas investment in oil and gas activities;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam issues this Circular guiding foreign exchange management for overseas investment in oil and gas activities.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular guides foreign exchange management for overseas investment in oil and gas activities including: transferring foreign currency abroad before obtaining the Certificate of Registration for Overseas Investment of investors in oil and gas activities (hereinafter referred to as transferring foreign currency abroad before investment); opening and using foreign currency accounts to transfer investment capital abroad before and after obtaining the Certificate of Registration for Overseas Investment; registering and registering changes to foreign exchange transactions of investors after obtaining the Certificate of Registration for Overseas Investment; transferring investment capital, profits, and lawful income from abroad back to Vietnam in oil and gas activities.

Article 2. Regulations on foreign exchange management for overseas investment in oil and gas projects under the form prescribed in point d, Clause 1, Article 52 of the Investment Law are not within the scope of regulation of this Circular.

Article 2. Applicability

Point 1. Investors include resident organizations (excluding credit institutions) and resident individuals who carry out overseas investment in oil and gas activities according to the forms prescribed in points a, b, c, and d, Clause 1, Article 52 of the Investment Law (hereinafter referred to as "investors").

Point 2. Other organizations and individuals related to overseas investment in oil and gas activities.

Article 3. Explanation of Terms

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

Point 1. Authorized credit institutions are credit institutions and branches of foreign banks authorized to operate and provide foreign exchange services according to the regulations of the State Bank of Vietnam (hereinafter referred to as the State Bank).

Point 2. The foreign investment capital account (hereinafter referred to as the foreign investment capital account) is a foreign currency payment account or a Vietnamese dong payment account opened by investors at authorized credit institutions in Vietnam after the project has been granted the Certificate of Registration for Overseas Investment in oil and gas activities to conduct transactions as stipulated in this Circular.

Point 3. The foreign currency account before obtaining the Certificate of Registration for Overseas Investment in oil and gas activities (hereinafter referred to as the foreign currency account before investment) is a foreign currency payment account opened by investors at authorized credit institutions in Vietnam to transfer foreign currency abroad before investment as prescribed in Clause 1 and Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP dated November 15, 2017 of the Government on overseas investment in oil and gas activities (hereinafter referred to as Decree No. 124/2017/NĐ-CP).

Point 4. Registering foreign exchange transactions related to overseas investment in oil and gas activities is the act of investors registering with the State Bank information about investors, investment capital, foreign investment capital accounts opened at authorized credit institutions to conduct overseas investment activities in oil and gas and the progress of transferring investment capital abroad as stipulated in Article 21 of Decree No. 124/2017/NĐ-CP and this Circular.

Point 5. Registering changes to foreign exchange transactions related to overseas investment in oil and gas activities is the act of investors registering changes with the State Bank as prescribed in Clause 1 and Clause 2, Article 22 of Decree No. 124/2017/NĐ-CP and this Circular.

Point 6. Confirmation of registration of foreign exchange transactions related to overseas investment in oil and gas activities is the act of the State Bank issuing a document confirming that investors have completed the registration of foreign exchange transactions related to overseas investment in oil and gas activities as prescribed in Decree No. 124/2017/NĐ-CP and this Circular.

Point 7. Confirmation of registration of changes to foreign exchange transactions related to overseas investment in oil and gas activities is the act of the State Bank issuing a document confirming that investors have completed the registration of changes to foreign exchange transactions related to overseas investment in oil and gas activities as prescribed in Decree No. 124/2017/NĐ-CP and this Circular.

Article 4. Currency for investment abroad in oil and gas activities

1. Foreign currency in bank accounts at permitted banks or purchased from permitted banks or foreign currency from other lawful sources as prescribed by law.

1. Foreign currency on accounts at permitted credit institutions or purchased from permitted credit institutions or foreign currency from other lawful sources as prescribed by law.

2. Vietnamese dong in cases where investment capital is transferred to receiving countries or territories that have signed bilateral or multilateral agreements with Vietnam allowing the use of Vietnamese dong in settlement transactions and transfers.

Chapter II
TRANSFERRING FOREIGN CURRENCY ABROAD BEFORE INVESTMENT

Article 5. Principles for transferring foreign currency abroad before investment

1. Investors may transfer foreign currency abroad to study the market, seek opportunities, and prepare for investment prior to obtaining the Certificate of Registration for Overseas Investment in Oil and Gas Activities as stipulated in Clause 1 and Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP.

2. The transfer of foreign currency abroad before investment by investors must be conducted through pre-investment foreign currency accounts as prescribed in Articles 7 and 8 of this Circular.

3. The limit for transferring foreign currency abroad before investment as stipulated in Clause 2 and Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP for a project is the total amount of foreign currency transferred abroad before investment for that project. In cases where overseas projects involve multiple investors, the limit for transferring foreign currency abroad before investment is the total amount of foreign currency transferred abroad by participating investors.

4. The total amount of foreign currency transferred abroad before investment and the amount registered for transfer abroad after obtaining the Certificate of Registration for Overseas Investment in Oil and Gas Activities for each project shall not exceed the total investment capital abroad in foreign currency of that project according to the Certificate of Registration for Overseas Investment. In cases where overseas projects involve multiple investors, the total amount of foreign currency transferred abroad before investment and the amount registered for transfer abroad after obtaining the Certificate of Registration for Overseas Investment of each investor shall not exceed the proportion of their contributed capital according to the Certificate of Registration for Overseas Investment.

5. In cases where an investment project is not formed, the overseas investment project does not continue to be implemented, or the Certificate of Registration for Overseas Investment is not granted, the investor must repatriate any unused foreign currency that has been transferred abroad to Vietnam (if applicable), then close the pre-investment foreign currency account.

6. Investors are responsible under the law for the legality, purpose, and effectiveness of the foreign currency transferred abroad before investment.

Article 6. Principles for approving the transfer of foreign currency abroad before investment

1. Investors shall follow the procedures, formalities, and documentation prescribed in Article 7 of Decree No. 124/2017/NĐ-CP to request approval for transferring foreign currency abroad before investment from the State Bank (Department of Foreign Exchange Management). In cases where investment projects involve multiple investors, each investor shall submit the request for approval to the State Bank. The application for transferring foreign currency abroad before investment shall be in the form provided in Appendix No. 01 attached to this Circular.

2. The State Bank shall examine and approve the transfer of foreign currency abroad before investment for investors in the form provided in Appendix No. 02 attached to this Circular.

3. The State Bank shall confirm the amount of foreign currency transferred abroad before investment for investors in the confirmation document registering foreign exchange transactions related to overseas investment in oil and gas activities.

Article 7. Principles for Opening and Using Pre-investment Foreign Currency Accounts

1. An investor may only open one pre-investment foreign currency account at one permitted credit institution, except in cases provided for in Clause 4 of this Article. In cases where a foreign investment project involves multiple investors, each investor must open a separate pre-investment foreign currency account at the same permitted credit institution to carry out the transfer of foreign currency abroad before investment.

2. An investor who transfers foreign currency abroad for multiple foreign investment projects must open a separate pre-investment foreign currency account for each project.

3. After the foreign investment registration certificate is issued for the project, the pre-investment foreign currency accounts specified in Clauses 1 and 2 of this Article must be used as investment capital accounts.

4. When an investor changes the pre-investment foreign currency account to another foreign currency or changes the permitted credit institution where the pre-investment foreign currency account is opened, they must follow the following principles:

a) Open a pre-investment foreign currency account in another foreign currency or at another permitted credit institution;

b) Within five working days from the date of opening a pre-investment foreign currency account in another foreign currency, the investor must convert the entire balance of foreign currency on the previously opened pre-investment foreign currency account into the new foreign currency and transfer it to the new pre-investment foreign currency account, while closing the previously opened pre-investment foreign currency account. Within five working days from the date of opening a pre-investment foreign currency account at another permitted credit institution, the investor must transfer the entire balance on the previously opened pre-investment foreign currency account to the new account, while closing the previously opened pre-investment foreign currency account;

c) The investor may only conduct transactions of receipts and payments on the newly opened pre-investment foreign currency account after closing the previously opened pre-investment foreign currency account (except for transactions receiving balances transferred from the previously opened pre-investment foreign currency account and transactions receiving newly converted foreign currency balances from the previously opened pre-investment foreign currency account when changing the pre-investment foreign currency account to another foreign currency);

d) Within fifteen days from the completion of the procedures mentioned in point a and b of this clause, the investor must notify the State Bank (Department of Foreign Exchange Management) about the change of the pre-investment foreign currency account for cases requiring approval for transferring foreign currency before investment as stipulated in Article 6 of this Circular;

5. All transactions of receipts and payments as prescribed in Article 8 of this Circular must be carried out through the pre-investment foreign currency account.

6. Procedures for opening and closing pre-investment foreign currency accounts shall be implemented in accordance with the regulations of the State Bank on the opening and use of settlement accounts at service providers.

Article 8. Transactions of Receipts and Payments on Pre-investment Foreign Currency Accounts

1. Receipt transactions:

a) Receipts by bank transfer from the investor's foreign currency account;

b) Receipts of foreign currency purchased from a permitted credit institution in accordance with the provisions of the law;

c) Receipts of foreign currency transferred back to Vietnam in cases where the investor does not use up the amount transferred abroad for market research, seeking opportunities, and preparing for investment before obtaining the foreign investment registration certificate as stipulated in Clause 1 and Clause 4 of Article 5 of Decree 124/2017/NĐ-CP or is refunded by the foreign party for expenses incurred in forming a foreign investment project in the oil and gas sector;

d) Receipts of remaining foreign currency balances in cases of changing the pre-investment foreign currency account as provided for in Clause 4 of Article 7 of this Circular;

đ) Other receipt transactions of foreign currency related to pre-investment activities before obtaining the foreign investment registration certificate;

2. Payment transactions:

a) Payments of foreign currency abroad for purposes as stipulated in Clause 1 and Clause 4 of Article 5 of Decree 124/2017/NĐ-CP;

b) Payments of foreign currency to a permitted credit institution;

c) Payments by bank transfer to the investor's foreign currency account.

Chapter III
OPENING AND USING THE INVESTMENT CAPITAL ACCOUNT

Article 9. Principles for opening and using investment capital accounts

1. After being issued with the Certificate of Registration for Foreign Investment, the investor must open one investment capital account denominated in one foreign currency suitable for transferring investment capital abroad in oil and gas activities at one permitted credit institution (except in cases provided for in Clause 3, Article 7 of this Circular). All transactions for receipts and payments as stipulated in Articles 10 and 11 of this Circular must be conducted through the investment capital account.

2. In the case of transferring investment capital abroad in Vietnamese dong, the investor may simultaneously open and use one investment capital account denominated in Vietnamese dong and one investment capital account denominated in foreign currency at one permitted credit institution.

3. Investors with multiple overseas investment projects must open separate investment capital accounts for each project.

4. In the case of an overseas investment project involving multiple investors, each investor must open a separate investment capital account to transfer capital abroad.

5. When changing the investment capital account to another foreign currency or to another permitted credit institution where the account is opened, the investor shall follow the following principles:

a) Open an investment capital account denominated in another foreign currency or at another permitted credit institution;

b) Register changes to foreign exchange transactions related to overseas investment in oil and gas activities with the State Bank of Vietnam in accordance with Clause 2, Article 22 of Decree 124/2017/NĐ-CP and Chapter IV of this Circular;

c) Within five working days from the date the State Bank of Vietnam confirms the change registration of the investment capital account denominated in another foreign currency, the investor must convert the entire balance of foreign currency in the previously opened account to the new foreign currency and transfer it to the new investment capital account, while closing the previously opened account. Within five working days from the date the State Bank of Vietnam confirms the change registration of the investment capital account at another credit institution, the investor must transfer the entire balance of the previously opened account to the new investment capital account, while closing the previously opened account;

d) The new investment capital account can only be used to conduct transactions for receipts and payments as stipulated in Articles 10 and 11 of this Circular after completing the procedures set out in points a, b, and c of this clause (excluding transactions receiving balances transferred from the previously opened investment capital account and transactions receiving newly converted foreign currency balances from the previously opened investment capital account in the case of changing the investment capital account to another foreign currency);

6. Procedures for opening and closing investment capital accounts shall be carried out in accordance with the regulations of the State Bank of Vietnam on opening and using settlement accounts at service providers.

Article 10. Transactions for receipts and payments on foreign currency investment capital accounts

1. Receipt transactions:

a) Receipts by bank transfer from the investor's foreign currency account;

b) Receipts of foreign currency purchased from permitted credit institutions in compliance with the law to serve overseas investment in oil and gas activities;

c) Receipts of foreign currency from recoveries of capital (costs) that the investor is entitled to receive in accordance with Clause 5, Article 3 of Decree 124/2017/NĐ-CP;

d) Receipts of repatriated investment capital in the event of transferring, reducing, liquidating, or terminating overseas investment activities;

đ) Receipts of profits and other lawful incomes transferred back from overseas investment activities in oil and gas;

e) Receipts of principal and interest of loans made by the investor to the same legal entity implementing the overseas investment project in oil and gas activities in compliance with the law;

g) Recovery of debts from the guarantor party related to guarantees provided by the investor for the same legal entity implementing the overseas investment project in oil and gas activities in compliance with the law;

h) Receipts of balances in the case of changing the investment capital account as provided for in Clause 5, Article 9 of this Circular;

i) Other lawful receipt transactions related to overseas investment activities in oil and gas;

2. Payment transactions:

a) Payments for transferring investment capital abroad in oil and gas activities;

b) Loans to the same legal entity implementing the overseas investment project in oil and gas activities in compliance with the law;

c) Payments for fulfilling guarantee obligations related to guarantees provided by the investor for the same legal entity implementing the overseas investment project in oil and gas activities in compliance with the law;

d) Sales of foreign currency to permitted credit institutions;

đ) Payments into the foreign currency account of the investor;

e) Other lawful payment transactions related to overseas investment activities in oil and gas.

Article 11. Transactions for receiving and paying on accounts of investment capital in Vietnamese dong

1. Receipt transactions:

a) Receiving transfers from the domestic currency account of investors;

b) Receiving principal and interest debts from loans made by investors to the same legal entity implementing overseas investment projects in the oil and gas sector in accordance with the provisions of the law;

Recovering debts from the guarantor party related to guarantees provided by investors to the same legal entity implementing overseas investment projects in the oil and gas sector in accordance with the provisions of the law;

Recovering investment capital in Vietnamese dong (costs) that investors are entitled to receive as stipulated in Clause 5, Article 3 of Decree No. 124/2017/NĐ-CP;

e) Receiving repatriation of investment capital in Vietnamese dong from abroad in cases of transferring, reducing, liquidating, or terminating overseas investment activities in the oil and gas sector;

f) Receiving profits and other lawful income in Vietnamese dong transferred back from overseas investment activities in the oil and gas sector;

g) Receiving transfers of balances when changing investment capital accounts in accordance with Clause 5, Article 9 of this Circular;

h) Other lawful transactions in Vietnamese dong related to overseas investment activities in the oil and gas sector.

2. Payment transactions:

a) Transferring investment capital in Vietnamese dong out of the country for overseas investment activities in the oil and gas sector;

b) Transferring funds into the investor's Vietnamese dong account;

c) Lending to the same legal entity implementing overseas investment projects in the oil and gas sector in accordance with the provisions of the law;

d) Fulfilling guarantee obligations related to guarantees provided by investors to the same legal entity implementing overseas investment projects in the oil and gas sector in accordance with the provisions of the law;

Other lawful transactions in Vietnamese dong related to overseas investment activities in the oil and gas sector.

Chapter IV

REGISTRATION, MODIFICATION REGISTRATION OF FOREIGN EXCHANGE TRANSACTIONS

RELATED TO OVERSEAS INVESTMENT ACTIVITIES IN THE OIL AND GAS SECTOR

PETROLEUM ACTIVITIES

Article 12. Registration and Change Registration of Foreign Exchange Transactions

1. After obtaining the Certificate of Overseas Investment Registration, investors shall register, change registration, and notify changes in foreign exchange transactions related to overseas investments in the oil and gas sector with the State Bank branch in the province or city where they operate according to the procedures, formalities, and documents prescribed in Articles 21 and 22 of Decree No. 124/2017/NĐ-CP. In cases where the project involves multiple investors, each investor shall register, change registration, and notify changes in foreign exchange transactions related to overseas investments with the State Bank branch in the province or city where their main office or registered residence is located.

2. The application for registration and change registration of foreign exchange transactions related to overseas investments in the oil and gas sector shall be in the form specified in Appendix 03 and Appendix 04 issued together with this Circular.

Article 13. Authority to Confirm Registration and Change Registration of Foreign Exchange Transactions

1. The State Bank branch in the province or city shall confirm registration and change registration of foreign exchange transactions related to overseas investments in the oil and gas sector for organizations with their main offices in the same area and for individuals registered to reside in the same area (in the form specified in Appendix 05 and Appendix 06 issued together with this Circular).

2. In cases where changes in the investor implementing the project lead to a change in the authority of the State Bank branch in the province or city responsible for confirming changes in foreign exchange transactions related to overseas investments in the oil and gas sector, the original State Bank branch in the province or city responsible for initial registration and change registration of foreign exchange transactions shall undertake the following responsibilities:

a) Serving as the point of contact for receiving applications for changes in foreign exchange transactions related to overseas investments in the oil and gas sector from investors;

b) Within three working days from the date of receipt of the application for changes in foreign exchange transactions related to overseas investments in the oil and gas sector from investors, transferring the entire original application for change registration and copies of the registration and change registration documents already completed by the investor (if any) to the State Bank branch in the province or city with the authority stipulated in Clause 1 of this Article for further processing; simultaneously notifying the investor about the transfer of the application for changes in foreign exchange transactions related to overseas investments in the oil and gas sector to the new authorized State Bank branch in the province or city.

Article 14. Effectiveness of the Confirmation Document for Registration and Change Registration of Foreign Exchange Transactions Related to Overseas Investment in Oil and Gas Activities

1. The Confirmation Document for Registration and Change Registration of Foreign Exchange Transactions Related to Overseas Investment in Oil and Gas Activities issued by the State Bank shall automatically become ineffective when there is a decision by the competent authority regarding the termination of the Effectiveness of the Certificate of Registration for Overseas Investment for the investor; or when the investor withdraws from the investment project in cases where multiple investors are involved and the competent authority has adjusted the Certificate of Registration for Overseas Investment. In such cases, the investor may continue to use the investment capital account to conduct transactions for profit repatriation, legitimate income sources, and foreign investment capital to be transferred back to Vietnam.

2. When there is a conclusion by the competent authority regarding the forgery of registration documents and materials related to Foreign Exchange Transactions concerning Overseas Investment in Oil and Gas Activities, the agency responsible for confirming registration and change registration of foreign exchange transactions related to overseas investment in oil and gas activities as stipulated in Article 13 of this Circular shall issue a document to the investor and the credit institution where the investor has opened the investment capital account regarding the termination of the effectiveness of the confirmation document for registration and change registration of foreign exchange transactions related to overseas investment in oil and gas activities, along with the reasons for such termination.

Chapter V
TRANSFERS OF PROFITS, LEGAL INCOME AND CAPITAL

FROM OVERSEAS TO VIETNAM

Article 15. Transfer of Profits, Legal Income and Capital Investment Back to Vietnam

1. Investors are responsible for transferring profits, legal income, and capital investment back to Vietnam after liquidation, termination, reduction of investment capital, or transfer of the investment project through the investor's investment capital account as prescribed in this Circular.

2. For cases where the overseas investment project is terminated according to point d, Clause 1, Article 62 of the Investment Law, before implementing the termination of the project and transferring all overseas investment capital to foreign investors, the investor must notify the State Bank branch in the province or city where the investor registered foreign exchange transactions related to overseas investment in oil and gas activities.

Article 16. Utilization of Profits Abroad

1. Investors who use profits obtained from overseas investment activities to increase capital and expand overseas investment activities must follow the procedures to adjust the Certificate of Registration for Overseas Investment at the competent authority in Vietnam according to current laws on overseas investment and must submit a report to the State Bank branch in the province or city where the investor registered foreign exchange transactions related to overseas investment in oil and gas activities within thirty days from the date of issuance of the adjusted Certificate of Registration for Overseas Investment.

2. In cases where profits obtained from overseas investment projects are used to implement other overseas investment projects in oil and gas activities, after obtaining the Certificate of Registration for Overseas Investment for the new project, the investor must register foreign exchange transactions related to overseas investment activities in oil and gas with the State Bank in accordance with Article 21 of Decree 124/2017/NĐ-CP and Chapter IV of this Circular.

Chapter VI
RESPONSIBILITIES OF THE PARTIES INVOLVED

Article 17. Responsibilities of the Investor

1. Comply with regulations on foreign investment in oil and gas activities, implement capital transfers in and out of Vietnam, and other contents related to foreign investment in oil and gas activities as stipulated in this Circular.

2. Truthfully declare the income and expenditure on foreign currency accounts before investment and investment capital accounts; provide relevant documents and vouchers related to foreign investment in oil and gas activities upon request and guidance from authorized credit institutions.

3. Carry out capital transfers abroad according to the content confirmed in the registration confirmation document for foreign exchange transactions related to foreign investment in oil and gas activities issued by the State Bank of Vietnam.

4. Only transfer foreign currency abroad before investment after obtaining approval documentation from the State Bank of Vietnam (applicable to cases specified in points b, d of Clause 2 and points a, c of Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP).

5. Bear legal responsibility for the accuracy and truthfulness of documents and contents registered for foreign exchange transactions related to foreign investment in oil and gas activities as stipulated in this Circular and other relevant laws.

6. Be responsible for using funds on foreign currency accounts before investment and investment capital accounts in accordance with the purposes notified to authorized credit institutions, registered, and confirmed by the State Bank of Vietnam.

7. Adhere to reporting systems as stipulated in Article 21 of this Circular and other relevant laws.

8. Be subject to supervision and inspection of compliance with current foreign exchange management laws by the State Bank of Vietnam.

Article 18. Liability of permitted credit institutions

1. Guide investors to perform procedures for opening, closing, and using investment capital accounts and foreign currency accounts before investment as stipulated in this Circular and relevant laws.

2. Implement the opening, closing of investment capital accounts and foreign currency accounts before investment, and execute transactions of income and expenditure on these accounts at the investor's request in accordance with this Circular.

3. Transfer foreign currency abroad before investment for investors in accordance with Clause 1, Clause 2, and Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP and this Circular. For cases where investors must obtain approval from the State Bank of Vietnam to transfer foreign currency abroad before investment, credit institutions can only carry out such transfers after investors present the approval documentation from the State Bank of Vietnam.

4. Only carry out capital transfers abroad in oil and gas activities after obtaining a Certificate of Registration for Foreign Investment issued by the State Bank of Vietnam based on the registration confirmation document for foreign exchange transactions related to foreign investment in oil and gas activities provided by the investor in accordance with Chapter IV of this Circular.

5. Require investors to provide appropriate documents and vouchers for review and verification to ensure that foreign currency transfers abroad before investment comply with the purposes specified in Clause 1 and Clause 4, Article 5 of Decree No. 124/2017/NĐ-CP.

6. Review, verify, and retain appropriate documents and vouchers corresponding to actual transactions to ensure that foreign exchange services provided to investors are carried out in accordance with their intended purposes and relevant laws.

7. Confirm the account and amount transferred abroad before obtaining a Certificate of Registration for Foreign Investment, the balance on foreign currency accounts before investment converted to investment capital accounts, the opening of investment capital accounts, the balance on investment capital accounts, the amount transferred abroad, and the amount transferred back to Vietnam at the time of change for the State Bank of Vietnam to confirm registration of foreign exchange transactions and changes in foreign exchange transactions related to foreign investment in oil and gas activities.

8. Adhere to reporting systems as stipulated in Chapter VII of this Circular and other relevant laws.

Article 19. Responsibilities of Units under the State Bank

1. Responsibilities of the State Bank of Vietnam Branches in Provinces and Cities

a) Confirm registrations and changes in foreign exchange transactions related to foreign investment in oil and gas activities for investors within their jurisdiction in accordance with Chapter IV of this Circular;

b) Monitor, compile, and summarize the implementation of foreign investments in oil and gas activities by investors within their jurisdiction to meet reporting requirements to the State Bank of Vietnam as stipulated in Chapter VII of this Circular;

c) Supervise and inspect compliance with current foreign exchange management laws by investors within their jurisdiction;

d) Send copies of the following documents to the State Bank of Vietnam (Department of Foreign Exchange Management) for coordination in management within five working days from the date of signing the document:

(i) Confirmation documents for registrations and changes in foreign exchange transactions related to foreign investment in oil and gas activities;

(ii) Documents terminating the effectiveness of confirmation documents for registrations and changes in foreign exchange transactions related to foreign investment in oil and gas activities.

2. Responsibilities of the Department of Foreign Exchange Management

a) Lead and coordinate with relevant units of the State Bank of Vietnam to handle issues related to foreign investment in oil and gas activities within the scope of this Circular;

b) Process applications for approval to transfer foreign currency abroad by investors prior to obtaining a Certificate of Registration for Foreign Investment in accordance with Article 7 of Decree No. 124/2017/NĐ-CP.

Chapter VII
REPORTING SYSTEM

Article 20. Reporting regime for licensed credit institutions

1. No later than the 10th day of the month following the month in which transactions to transfer foreign currency out of the country before investment or transactions to transfer foreign currency back into the investor's pre-investment foreign currency account occur, the licensed credit institution where the investor opens the pre-investment foreign currency account must report in writing to the State Bank (Department of Foreign Exchange Management) on the implementation of transactions on the pre-investment foreign currency account (in accordance with Form No. 07 attached hereto).

2. The licensed credit institution where the investor opens the investment capital account must report on the income and expenditure on the investor's investment capital account in accordance with the current reporting and statistical system regulations of the State Bank applicable to credit institutions and foreign bank branches.

Article 21. Reporting regime for investors

1. No later than the 5th day of the first month of the quarter following the quarter in which transactions to transfer foreign currency out of the country before investment or transactions to transfer foreign currency back into the investor's pre-investment foreign currency account occur, investors required to submit approval procedures for transferring foreign currency out of the country before investment to the State Bank must report on the implementation of transferring foreign currency out of the country before investment (in accordance with Form No. 08 issued together with this Circular) for each project to the State Bank (Department of Foreign Exchange Management).

2. Quarterly (no later than the 5th day of the first month of the quarter following the quarter being reported), investors must report on the implementation of transferring investment capital out of the country in oil and gas activities (in accordance with Form No. 09 issued together with this Circular) for each project that has been granted Investment Registration Certificate by the competent authority to the State Bank branch in the province or city where the investor's main office is located or where the investor is registered as a resident individual.

Article 22. Reporting regime for State Bank provincial and municipal branches

State Bank provincial and municipal branches must report on the confirmation of registration, changes in registration related to foreign exchange transactions concerning overseas investment in oil and gas activities, and the implementation of transferring investment capital out of the country by investors within their jurisdiction in accordance with the current reporting and statistical system regulations of the State Bank applicable to State Bank provincial and municipal branches.

Article 23. Requirements for urgent reports

In cases of urgency or when necessary, investors, licensed credit institutions, and State Bank provincial and municipal branches shall implement reports as requested by the State Bank.

Chapter VIII
IMPLEMENTING PROVISIONS

Article 24. Effective Date

1. This Circular takes effect from February 1, 2019, and replaces Circular No. 36/2013/TT-NHNN dated December 31, 2013, of the State Bank on the opening and use of foreign currency accounts for direct investment abroad.

2. Abolish Clause 2 of Article 28 of Circular No. 12/2016/TT-NHNN dated June 29, 2016, of the State Bank guiding foreign exchange management for overseas investment activities.

3. Cases that have been confirmed by the State Bank for registration of transferring foreign currency out of the country before investment, registration of accounts, and progress in transferring investment capital out of the country in accordance with Circular No. 36/2013/TT-NHNN shall continue to be implemented in accordance with the documents already confirmed by the State Bank.

Article 25. Implementation organization

The Director of the Office, the Head of the Department of Foreign Exchange Management, the Heads of relevant units under the State Bank, the Governors of State Bank branches in provinces and centrally-administered cities, the Chairmen of the Board of Directors, the Chairmen of the Board of Members, and the General Managers (Directors) of licensed credit institutions are responsible for organizing the implementation of this Circular.