Circular No. 33 TC/CN on the regime for collecting exchange rate differences for Vietnamese economic units directly contracting service work with the Vietnam-Soviet Joint Venture Oil Enterprise.

CIRCULAR

Regarding the exchange rate differential collection system for Vietnamese economic units directly contracting service work with the Vietnam-Soviet Joint Venture Oil Enterprise

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Due to foreign currency exchange rates applicable to the Vietnam-Soviet Joint Venture Oil Enterprise often being negotiated and agreed upon between the competent authorities of the two countries, Vietnam and the Soviet Union, when corresponding exchange rates within the Vietnamese exchange rate system are applied at the same time, exchange rate discrepancies inevitably arise in the settlement transactions between the Vietnam-Soviet Joint Venture Oil Enterprise and Vietnamese economic organizations.

The Ministry of Finance stipulates the exchange rate differential collection and compensation system for payments in Vietnamese Dong for Vietnamese economic units directly contracting with the Vietnam-Soviet Joint Venture Oil Enterprise as follows:

1. All Vietnamese economic units that directly contract construction, services, and other types of economic activities with the Vietnam-Soviet Joint Venture Oil Enterprise must base their contracts on economic agreements with this enterprise. Prices shall be calculated based on prices within the Economic Mutual Assistance Council framework (if denominated in transferable Rubles), or international prices in the Southeast Asian region (if denominated in US dollars), then converted to transferable Rubles according to the internal settlement exchange rate and converted to Vietnamese Dong and the exchange rate specified for the Vietnam-Soviet Joint Venture Oil Enterprise.

In cases where there are no international prices, the payment unit price must be determined based on economic-technical norms, wage systems, bonuses, and allowances currently applied to the Vietnam-Soviet Joint Venture Oil Enterprise, ensuring sufficient cost coverage and accumulation.

2. If the internal settlement exchange rate is lower than the exchange rate applicable to the Vietnam-Soviet Joint Venture Oil Enterprise, Vietnamese units must pay the State budget the aforementioned exchange rate differential.

- If the internal settlement exchange rate is higher than the exchange rate applicable to the Vietnam-Soviet Joint Venture Oil Enterprise, Vietnamese units will receive State budget compensation for the said exchange rate differential (units under which level of management will have their applications reviewed and compensated by the corresponding budget).

- In cases where actual domestic production costs exceed the internal settlement exchange rate due to primary materials purchased at agreed prices (export exchange rate loss), such situations must be approved by the financial authority based on plans reviewed and approved by the superior management authority according to the prescribed procedures.

3. To ensure uniformity in the economic settlement system for Vietnamese economic units, the revenue of these units (from direct contracts with the Vietnam-Soviet Joint Venture Oil Enterprise) shall be determined by the actual revenue paid by the Vietnam-Soviet Joint Venture Oil Enterprise plus (+) the amount compensated by the State budget or minus (-) the amount payable to the State budget regarding the exchange rate differential mentioned in point 2 above.

4. The exchange rate for settlement between Vietnamese Dong and transferable Rubles applicable to the Vietnam-Soviet Joint Venture Oil Enterprise will be announced by the Ministry of Finance to relevant sectors and localities. Units, sectors, and localities must promptly adjust their economic contracts with the Vietnam-Soviet Joint Venture Oil Enterprise and submit the amounts collected or compensated for exchange rate differentials to financial authorities.

- The collection and compensation of exchange rate differentials and export exchange rate losses must be recorded in the quarterly and annual financial plans of sectors and localities and settled with financial authorities according to current regulations.

This Circular takes effect from July 1, 1988. /./