Decree No. 47-CP on the issuance of temporary regulations on repaying foreign debts with exported goods

DECREE

Regarding the issuance of the Interim Regulation on Repaying Foreign Debts with Exported Goods.

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the proposal of the Chairman of the State Planning Commission in Circular No. 758/UB-LTVTHH/KTĐN dated April 17, 1993;

DECREE:

Article 1.- This Decree promulgates the Interim Regulation on Repaying Foreign Debts with Exported Goods.

Article 2.- The Regulation attached to this Decree shall take effect from the date of issuance and replace Article 12 of Decree No. 114-HĐBT dated April 7, 1992 of the Council of Ministers (now the Government).

Article 3.- The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for guiding and implementing the Regulation attached to this Decree./.

REGULATIONS

INTERIM REGULATION ON REPAYING FOREIGN DEBTS WITH EXPORTED GOODS

(Attached to Decree No. 47-CP dated June 26, 1993 of the Government).

I. GENERAL PRINCIPLES

Article 1.- The total value of goods exported to repay foreign debts annually is part of the annual foreign debt repayment plan approved by the Government in the annual state budget plan.

Article 2.- The Ministry of Finance shall lead together with the State Planning Commission and the Ministry of Trade to develop the annual foreign debt repayment plan for each country (each specific entity) based on the state budget revenue and expenditure capacity, trade balance, while also considering the trade relations with each country.

Article 3.- Based on the foreign debt repayment plan approved by the Government, the Ministry of Finance shall notify the State Planning Commission, the Ministry of Trade, and related sectors about the specific debt repayment limit for each country (each specific entity). On this basis, the Ministry of Trade and the assigned sectors shall undertake negotiations and signing of relevant agreements with the foreign side regarding export goods within the debt repayment limit and the overall export structure of the annual export plan.

After signing with the foreign side, the Ministry of Trade and related sectors shall submit the signed documents and agreements to the Prime Minister for approval and simultaneously send them to the State Planning Commission, the Ministry of Finance, and the State Bank for implementation of the repayment plan.

Article 4.- Based on the signed agreements with the foreign side, the State Planning Commission shall lead together with the Ministry of Trade and the Ministry of Finance to establish the debt repayment allocation plan (in accordance with the principles and methods set out in Part II of this Regulation) and submit it to the Prime Minister for approval before officially announcing it so that ministries, sectors, localities, and enterprises can implement it.

Article 5.- During the implementation of the repayment plan, if the foreign side necessarily requests changes to the repayment goods structure, the Ministry of Trade and related sectors must promptly inform the State Planning Commission to rearrange the plan within the approved limit.

Article 6.- Export goods according to the Government's repayment plan are domestically produced goods and are paid from the state budget, according to exchange rates for each group and type of goods.

II. PRINCIPLES AND METHODS OF ALLOCATING DEBT REPAYMENT LIMITS

a) Allocation Principles:

Article 7.- Export goods for repayment are allocated based on the value of export turnover (debt repayment limit), not by quantity; the total value of goods allocated must be consistent with the debt repayment limit arranged by the budget.

Article 8.- Priority is given to allocating to sectors and localities producing goods in the repayment list that have budget difficulties. First priority is given to state-owned units currently facing market difficulties and having products in the repayment list.

b) Allocation Methods:

Article 9.- For goods where the production capacity and capability of the sector and production unit are firmly known, the State Planning Commission and the Ministry of Trade shall directly allocate to the sector and production unit based on the proposals of ministries, sectors, and localities, with the remainder allocated by ministries, sectors, and localities to their affiliated enterprises and notified to the State Planning Commission, the Ministry of Trade, and the Ministry of Finance.

Article 10.- The Ministry of Finance and the State Planning Commission shall allocate the debt repayment limit based on balancing with the budget expenditure capacity for the repayment plan (for the whole year and each quarter).

III. RESPONSIBILITIES OF AGENCIES AND UNITS RECEIVING DEBT REPAYMENT LIMITS

Article 11.- Based on the approved debt repayment limit and notification to enterprises, the Ministry of Trade needs to:

Notify the foreign side of the Vietnamese counterparts;

Provide general guidance for enterprises to sign foreign contracts; direct prices and other commercial conditions; issue export permits (if necessary), inspect and ensure the quality of contracted goods;

Designate units with sufficient conditions to act as main recipients for debt repayment delivery; inspect whether these units fulfill the contract properly and charge the main recipient fee.

Article 12.- The Ministry of Finance needs to:

Lead together with the Ministry of Trade, the Government Price Board, and the State Planning Commission to formulate and promulgate circulars determining the principles for setting exchange rates for payment of exported goods for repayment for each type and group of goods;

Lead the working group to determine the exchange rate between the Vietnamese Dong and foreign currencies for repayment (including representatives of the Ministry of Finance, the Ministry of Trade, the State Planning Commission, the Government Office, and units exporting goods for repayment) for the Ministry to decide on specific payment exchange rates;

Coordinate with the State Bank to timely settle payments for enterprises that have delivered goods for repayment or earned service income to offset foreign government debt according to current regulations of the Ministry of Finance; if payment is delayed by one month or more from the date all settlement documents are complete, interest must be paid at the loan interest rate charged by the enterprise to the bank.

Article 13.- The State Bank needs to:

Monitor the turnover of enterprises repaying debts to settle accounts with foreign receiving banks in Vietnam's account;

Promptly notify the Ministry of Finance when foreign receiving banks report receipt (have received) of each consignment of goods delivered.

Direct the Foreign Trade Bank in handling foreign payment procedures to offset state debt to the foreign side.

Article 14.- Enterprises delivering goods for repayment need to:

Ensure compliance with the allocated debt repayment limit; conditions regarding price, delivery time, and quality of contracted goods.

Has the right to choose a business entity as its principal for delivery and debt repayment from among those businesses designated as principals for delivery and debt repayment within the allocated quota.

Article 15.- Principal enterprises entrusted with delivering goods for debt repayment must:

Ensure transparency with the enterprise they serve as principal regarding the content of the foreign contract, transaction costs, payment exchange rates, and fulfill other commitments.

Only be permitted to charge a reasonable principal fee, not exceeding 1% of the value of the export repayment contract consignment (FOB price).

Article 16.- The State Planning Commission is responsible, together with the Ministry of Finance, the Ministry of Trade, the State Bank, and relevant ministries, sectors, and localities, for implementing the debt repayment plan. In cases where issues arise beyond their authority, the State Planning Commission must seek directives from the Prime Minister. Quarterly, the State Planning Commission compiles the situation and reports to the Prime Minister on the results of the debt repayment plan implementation./.