Decision No. 61/2001/QD-TTg On the Obligation to Sell and Right to Purchase Foreign Currency of Resident Organizations

Pursuant to …;

On the obligation to sell and the right to buy foreign currency of resident organizations

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PRIME MINISTER

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

Pursuant to Decree No. 05/2001/NĐ-CP dated January 17, 2001 of the Government amending and supplementing certain articles of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management;

At the proposal of the Governor of the State Bank of Vietnam,

DECISION:

Article 1. The obligation to sell foreign currency of resident organizations

2. Resident organizations including state agencies, armed forces units, political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, and charitable funds of Vietnam must immediately sell all foreign currency received from current account transactions to authorized banks from the date the foreign currency is transferred or deposited into their foreign currency accounts opened at authorized banks.

In cases where the balance in the foreign currency accounts of the aforementioned resident organizations is insufficient to maintain such accounts, these organizations are permitted to retain the necessary foreign currency to maintain their foreign currency accounts according to the regulations of the authorized bank where the account is opened.

3. For foreign currency received from current account transactions in the form of sponsorship or aid from resident organizations not required to fulfill the obligation to sell foreign currency, such organizations shall implement the agreement already committed between the resident party and the sponsor.

Article 2. The right to buy foreign currency of resident organizations

1. Resident organizations including Vietnamese economic organizations, credit institutions in Vietnam, foreign company branches, foreign contractors, foreign contractor consortia, state agencies, armed forces units, political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, and charitable funds of Vietnam when having a need for foreign currency to meet current account transactions, capital transactions, and other permitted transactions according to regulations may purchase foreign currency from authorized banks based on presenting valid documents and certificates.

2. Resident foreign-invested enterprises and foreign parties participating in joint business contracts when having a need for foreign currency to meet current account transactions, capital transactions, and other transactions according to regulations may purchase foreign currency from authorized banks based on presenting valid documents and certificates.

3. Resident foreign-invested enterprises and foreign parties participating in joint business contracts investing in particularly important projects under the government program shall be subject to the Prime Minister's consideration and decision regarding the guarantee of foreign currency balance for each project. Authorized banks have the responsibility to meet the foreign currency needs of foreign-invested enterprises and foreign parties participating in joint business contracts that have been decided by the Prime Minister to ensure foreign currency balance; in cases where existing foreign currency sources are insufficient to meet the needs, they shall report to the State Bank of Vietnam to supplement foreign currency sources.

4. Resident foreign-invested enterprises and foreign parties participating in joint business contracts investing in construction projects of infrastructure and other important projects, the Prime Minister will consider and decide to provide support for the guarantee of foreign currency balance based on the proposal of the Governor of the State Bank of Vietnam when authorized banks are unable to meet the foreign currency needs.

Article 3. Purchase and sale of foreign currency by the State budget

The foreign currency reserve of the State budget must be deposited into a foreign currency account opened at the State Bank of Vietnam to implement all foreign currency receipts and payments of the State budget.

Annually, based on the plan for foreign currency receipts and payments of the State budget, the Ministry of Finance and the State Bank of Vietnam will unify the scheme for purchasing and selling foreign currency by the State budget and implement the purchase and sale of foreign currency according to this scheme.

Article 4. Responsibilities of authorized banks

When buying and selling foreign currency, authorized banks have the responsibility to:

1. Notify and guide resident organizations to execute the purchase and sale of foreign currency according to the provisions on the purchase and sale of foreign currency stipulated in this Decision. In cases where resident organizations do not comply with the obligation to sell foreign currency from current account receipts, they may proactively execute the purchase of foreign currency according to the ratio prescribed in this Decision;

2. Sell foreign currency to resident organizations as prescribed in Article 2 of this Decision within the capacity of existing foreign currency sources;

3. Post the buying rate and selling rate according to the regulations of the State Bank of Vietnam;

4. Buy and sell foreign currency according to the rates prescribed by the State Bank of Vietnam;

5. Ensure the maintenance of the foreign exchange position or the Vietnamese dong position at the end of the day according to the regulations of the State Bank of Vietnam; carry out the purchase and sale of foreign currency on the inter-bank foreign exchange market to ensure the foreign exchange position at the end of the day within the prescribed limits;

6. Implement the sale of foreign currency to resident organizations according to the import priority policy of the Prime Minister during each period, the provisions on the sale of foreign currency stipulated in Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government, Decree No. 05/2001/NĐ-CP dated January 17, 2001 of the Government amending and supplementing certain articles of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government, the regulations on foreign exchange management for foreign direct investment in Vietnam, and other relevant regulations on foreign exchange management.

Article 5.Apply forms of foreign exchange transactions

The foreign currency purchase and sale transactions of resident organizations with authorized banks shall be conducted in accordance with spot foreign exchange transactions, forward transactions, and swap transactions as prescribed by the State Bank of Vietnam.

Article 6. Effectiveness

This Decision takes effect fifteen days from the date of signature.

2. This Decision replaces Decisions 173/1998/QĐ-TTg dated September 12, 1998, 232/1998/QĐ-TTg dated December 1, 1998, and 180/1999/QĐ-TTg dated August 30, 1999 of the Prime Minister, and other provisions regarding the obligation to sell and the right to buy foreign currency for resident organizations.

3. The Governor of the State Bank of Vietnam is responsible for guiding the implementation of this Decision.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision./.