Circular No. 55-TC/TCĐN guiding the preparation of plans and reports on foreign currency receipts and expenditures for foreign trade units under ministries, sectors, and localities.

CIRCULAR

DIRECTIVE NO. 55/TC-TCĐN OF THE MINISTRY OF FINANCE ON NOVEMBER 30, 1989 GUIDING THE PREPARATION AND REPORTING OF FOREIGN EXCHANGE INCOME AND EXPENSE PLANS FOR FOREIGN TRADE UNITS UNDER MINISTRIES, SECTORS, AND LOCALITIES

To implement Directive No. 308/CT dated October 30, 1989 of the Chairman of the Council of Ministers on strengthening foreign exchange management and Decision No. 218-CT dated August 18, 1989 of the Chairman of the Council of Ministers on the regime for selling foreign currency to the central foreign exchange fund, after discussing and reaching consensus with the State Planning Commission.

The Ministry of Finance guides the preparation and reporting of foreign exchange income and expense plans for foreign trade units under ministries, sectors, and localities as follows:

I - PREPARATION OF FOREIGN EXCHANGE PLAN

1. The foreign exchange plan is a component of the economic and financial plan of ministries, sectors, localities, and foreign trade units. This plan is based on:

- Foreign exchange management regimes related to the formation of foreign exchange sources of basic economic units;

- Export and import commodity and service targets;

- Economic, scientific and technological, cultural cooperation agreements signed with foreign countries;

- Economic contracts signed between domestic economic organizations and foreign economic organizations;

- Settlement situations with foreign economic organizations through the Vietnam Bank for Foreign Trade.

2. The foreign exchange plan must clearly reflect the following items:

a. The portion of foreign exchange due to the central foreign exchange fund, including:

- The foreign exchange target to be remitted to the central foreign exchange fund (as per Article 2 of Decision No. 218-TC dated August 18, 1989 of the Chairman of the Council of Ministers).

- The foreign exchange obligation target to be sold to the central foreign exchange fund (as per Article 3 of the aforementioned Decision No. 218-CT).

b. The portion of foreign exchange from the foreign trade activities of the unit, including:

- The amount of foreign exchange to be collected and expended during the planning period (including the carryover from the previous year and the foreign exchange that will arise and need to be settled in the following year).

- Foreign exchange receipts or expenditures in settlement relations with foreign economic organizations and domestic economic organizations.

- National credit debts, bank credits, and commercial credits, including a clear breakdown of overdue debts.

- Plan for repaying foreign debt.

- Foreign aid and international organization assistance (see Appendix 1 guiding the construction of the foreign exchange plan and report on the implementation of the foreign exchange plan submitted to the supervising agency and the same-level finance agency).

3. The foreign exchange plan is prepared according to two groups of foreign exchange:

- Convertible foreign exchange group: All foreign exchange in this group is converted to US dollars.

- Ruble transferable group. In this group, it is necessary to distinguish between trade and non-trade payment items. Non-trade payment items are converted to transferable rubles according to the agreed ratio among member states of the Council for Mutual Economic Assistance. The current conversion rate is 1 transferable ruble = 1.6 non-trade rubles (i.e., Soviet ruble).

II - APPROVAL OF THE PLAN AND REPORT ON IMPLEMENTATION OF THE FOREIGN EXCHANGE INCOME AND EXPENSE PLAN

1. The State Planning Commission takes the lead, coordinating with the Ministry of Finance, to review the foreign exchange income and expense plans and reports on their implementation of central ministries and sectors to submit to the Chairman of the Council of Ministers for approval along with the national economic plan.

AT At provincial level and equivalent: The Provincial State Planning Commission (and city, special zone directly under the Central Government) leads, coordinating with the Department of Finance, to review the foreign exchange plan and report on the implementation of the foreign exchange income and expense plan to submit to the Chairman of the People's Committee for approval along with the local economic plan.

2. The annual comprehensive foreign exchange plan of ministries, sectors, and localities is sent to the State Planning Commission and the Ministry of Finance in October of the year preceding the plan to compile the national foreign exchange income and expense plan for submission to the Chairman of the Council of Ministers for approval, while also allowing the Ministry of Finance to allocate Vietnamese dong to purchase foreign exchange from ministries, sectors, and localities (See the appendix guiding the preparation and reporting of plans for ministries, sectors, and localities).

Based on the approved foreign exchange income and expense plan of ministries, sectors, and localities by the Chairman of the Council of Ministers, the supervisory ministry and the Provincial People's Committee (city, special zone directly under the Central Government) assign the foreign exchange plan to subordinate units under their management for the grassroots foreign trade units to implement and conduct transactions through the Vietnam Bank for Foreign Trade.

III - ACCOUNTING, SETTLEMENT, AND INSPECTION WORK
FOREIGN EXCHANGE FINANCE

1. Economic transactions related to foreign exchange need to be accurately and promptly reflected in accounting books and vouchers.

- It is necessary to clearly reflect the actual foreign exchange received and expended in business relations with foreign countries and domestic units.

2. Foreign trade units under ministries, sectors, and localities must fully and promptly comply with the quarterly and annual foreign exchange income and expense settlement system.

The supervisory ministry and the Department of Finance, after reviewing the annual foreign exchange settlement report of subordinate foreign trade units, have the responsibility to analyze data, comment on the settlement regarding foreign exchange income and expenses, and prepare a consolidated foreign exchange income and expense settlement report for ministries, sectors, and localities to send to the Ministry of Finance in the first quarter of the following year.

3. Periodically or unexpectedly, the Ministry of Finance coordinates with the supervisory ministry to inspect the management, use, and compliance with the foreign exchange income and expense system of foreign trade units. Local foreign trade units are inspected by the Department of Finance.

IV - EFFECTIVE PROVISIONS

The provisions and guidelines in this Circular apply to the preparation and reporting of foreign exchange income and expense plans starting from 1990 onwards.

ANNEX 1

(Annexed to the Circular)

FOREIGN EXCHANGE INCOME AND EXPENSE PLAN OF FOREIGN TRADE UNIT
FOREIGN TRADE

(This form is for foreign trade units at the grassroots level to report to
the supervisory ministry or the local People's Committee)

Unit: 1,000R, USD

ANNEX 2

(Annexed to the Circular)

COMPREHENSIVE FOREIGN EXCHANGE INCOME AND EXPENDITURE PLAN OF MINISTRIES,
SECTORS, AND LOCALITIES SUBMITTED TO THE MINISTRY OF FINANCE AND THE STATE PLANNING COMMITTEE

Unit: 1,000 USD