Decision No. 468/2000/QĐ-NHNN7 On selling foreign currency to enterprises with foreign investment capital and foreign parties participating in joint business contracts

Pursuant to …;

Regarding the sale of foreign currency to enterprises with foreign investment capital and foreign parties participating in joint venture contracts

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated December 12, 1997;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for management of Ministries and ministerial-level agencies;

Pursuant to Decree No. 24/2000/NĐ-CP dated July 31, 2000 of the Government guiding detailed implementation of the Law on Foreign Investment in Vietnam;

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

DECISION:

Article 1: Enterprises with foreign investment capital and foreign parties participating in joint venture contracts are permitted to purchase foreign currency from authorized banks to meet the following transactions:

1. Current transactions as specified in Appendix 3 of Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank of Vietnam guiding the implementation of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on Foreign Exchange Management;

2. Other permitted transactions:

a. Repayment of principal, interest, and fees for short-term foreign loans (if the loan conditions comply with the Governor's regulations of the State Bank of Vietnam regarding borrowing and repaying foreign debt of enterprises);

b. Repayment of principal, interest, and fees for registered medium- and long-term foreign loans;

c. Repayment of principal, interest, and fees for foreign currency loans at authorized banks operating in Vietnam;

d. Transfer of statutory capital, reinvestment capital, or contract performance capital abroad upon cessation of operations.

Article 2: Depending on the purpose of using foreign currency, when selling and transferring foreign currency abroad for enterprises with foreign investment capital and foreign parties participating in joint venture contracts, authorized banks may require enterprises with foreign investment capital and foreign parties participating in joint venture contracts to present the Investment License and the necessary documents listed below:

1. Foreign currency for importing essential raw materials, components, and spare parts: Import Permit (if applicable), Commercial Contract; Documents proving delivery or execution of the Commercial Contract;

2. Foreign currency for paying foreign service fees: Service Contract with foreign entities and documents proving the execution of the Service Contract;

3. Foreign currency for transferring profits and legitimate income abroad: Financial Statements certified by an Auditor; Minutes of the Board of Directors (or Project Management Board for Joint Venture Contracts) on profit distribution (or revenue sharing); Official document of the Tax Authority confirming completion of financial obligations to the Vietnamese State;

4. Foreign currency for transferring salaries, bonuses, and other allowances of foreign employees working in enterprises with foreign investment capital and joint venture contracts when traveling on business or transferring money back home: Confirmation document from the enterprise with foreign investment capital or the foreign party participating in the joint venture contract regarding the amount to be transferred back home (legitimate total income minus tax obligations and expenses incurred in Vietnam); Confirmation from the competent Tax Authority that the foreign employee has fulfilled tax obligations according to the law;

5. Foreign currency for repayment of principal, interest, and fees for foreign currency loans: Foreign Currency Loan Agreement (or Promissory Note), Repayment Schedule; For medium- and long-term foreign loans, there must be a confirmation document from the State Bank regarding registration of the loan;

6. Foreign currency for transferring statutory capital, reinvestment capital, or contract performance capital abroad: Business Dissolution Report or Joint Venture Contract (approved by the investment license issuing authority); Official document of the competent Tax Authority confirming completion of financial obligations to the Vietnamese State;

7. For purchasing and using foreign currency to serve other current transactions, based on specific cases, authorized banks may require enterprises with foreign investment capital and foreign parties participating in joint venture contracts to present necessary documents to prove the legality of such current transactions.

The necessary documents mentioned in Points 1, 2, 3, 4, 5, 6, and 7 above shall be original or certified copies bearing the signature and stamp of the General Director (Director) or a legally authorized representative. In necessary cases, the bank is responsible for checking the original documents to ensure the legality of these types of documents.

Article 3: This Decision takes effect from the date of signing and replaces the provisions in Part IV of Circular No. 02/TT-NHNN7 dated June 28, 1997 of the State Bank guiding foreign exchange management for enterprises with foreign investment capital and foreign parties participating in joint venture contracts and Circular No. 585/CV-NHNN7 dated July 6, 1998 of the Governor of the State Bank guiding the sale of foreign currency to enterprises with foreign investment capital and foreign parties participating in joint venture contracts.

Article 4: Heads of units under the State Bank of Vietnam, Branch Governors of the State Bank of Vietnam in provinces and centrally-administered cities, Chairmen of the Board of Directors, General Directors (Directors) of authorized banks are responsible for implementing this Decision./.