Decree No. 63/1998/NĐ-CP On Foreign Exchange Management

DECREE OF THE GOVERNMENT

On foreign exchange management

 

THE GOVERNMENT

To contribute to promoting economic growth, improving the balance of international payments, gradually implementing the convertibility of the Vietnamese currency in foreign exchange activities, and perfecting the foreign exchange management system of Vietnam;

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

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

 

DECREE:

PART I
GENERAL PROVISIONS

Article 1. OBJECTS AND SCOPE OF REGULATION

1. This Decree stipulates foreign exchange and the management of foreign exchange activities of Vietnamese organizations and individuals within Vietnam and abroad, and of foreign organizations and individuals within Vietnam.

2. In the Socialist Republic of Vietnam, all foreign exchange activities of organizations and individuals must comply with the provisions of this Decree and other relevant laws. Foreign exchange can only circulate through the banking system and organizations and individuals permitted to engage in foreign exchange activities.

3. Foreign exchange activities in border areas and export processing zones shall be carried out according to separate regulations issued by the Prime Minister.

Article 2. State management of foreign exchange

1. The Government shall uniformly manage state affairs concerning foreign exchange and foreign exchange activities;

2. The Governor of the State Bank shall be responsible before the Government for implementing state management of foreign exchange and foreign exchange activities;

3. Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally-administered cities shall have the responsibility to manage state affairs concerning foreign exchange and foreign exchange activities within their respective functions and powers.

Article 3. Aapplication of international treaties, international custom, and foreign law in foreign exchange activities with foreign countries

1. In cases where an international treaty to which the Socialist Republic of Vietnam is a party provides differently from the provisions of this Decree, the provisions of that international treaty shall apply.

2. Where Vietnamese law does not prohibit, parties participating in foreign exchange activities with foreign countries may agree to apply international custom or foreign law, provided it does not result in damage to Vietnam's interests.

Article 4. Definitions

In this Decree, the following terms are understood as follows:

1. Foreign exchange includes:

a) Foreign currency such as banknotes and coins;

b) Payment instruments denominated in foreign currency such as checks, payment cards, bills of exchange, bank deposit certificates, postal savings certificates, and other payment instruments;

c) Securities denominated in foreign currency such as government bonds, corporate bonds, promissory notes, stocks, and other securities;

d) Special Drawing Rights, the European common currency, and other common currencies used in international and regional payments;

đ) International standard gold;

e) The circulating currency of the Socialist Republic of Vietnam when transferred into and out of its territory or used as a means in international payments.

2. Resident refers to an organization or individual, including:

a) State-owned enterprises, private enterprises, companies, cooperatives, and other economic organizations of various economic sectors established and operating in Vietnam (hereinafter referred to as Vietnamese economic organizations);

b) Foreign-invested enterprises and foreign parties participating in joint business contracts operating under the Law on Foreign Investment in Vietnam; overseas branches of foreign companies, foreign contractors, joint venture contractors with foreign entities, and other economic organizations with foreign capital operating in Vietnam not under the Law on Foreign Investment in Vietnam;

c) Vietnamese credit institutions, joint venture credit institutions, non-bank credit institutions with 100% foreign capital, and overseas branches of foreign banks operating in Vietnam (hereinafter referred to as credit institutions in Vietnam);

d) State agencies, armed forces units, political organizations, socio-political organizations, social organizations, social-professional organizations, social funds, and charitable funds of Vietnam operating in Vietnam;

đ) Diplomatic missions, consular offices, armed forces, and political organizations, socio-political organizations, social organizations, social-professional organizations, social funds, and charitable funds of Vietnam operating abroad; Vietnamese citizens working in these organizations and accompanying individuals;

e) Representative offices of Vietnamese economic organizations, representative offices of foreign-invested enterprises in Vietnam, and representative offices of credit institutions in Vietnam operating abroad;

g) Vietnamese citizens residing in Vietnam; Vietnamese citizens residing abroad for less than 12 months;

h) Foreign nationals residing in Vietnam for 12 months or more;

i) Vietnamese citizens traveling, studying, receiving medical treatment, and visiting abroad (regardless of duration);

3. Non-resident refers to an organization or individual, including:

a) Foreign economic organizations established and operating abroad;

b) Vietnamese economic organizations, foreign-invested enterprises in Vietnam operating abroad;

c) Vietnamese credit institutions, foreign credit institutions in Vietnam established and operating abroad;

d) State agencies, armed forces units, political organizations, socio-political organizations, social organizations, social-professional organizations, social funds, and charitable funds of foreign countries operating abroad;

đ) Diplomatic missions, consular offices, representative offices of international organizations, representative offices of intergovernmental organizations, representative offices of non-governmental organizations, armed forces, and political organizations, socio-political organizations, social organizations, social-professional organizations of foreign countries operating in Vietnam; foreigners working in these organizations and accompanying individuals;

e) Representative offices of foreign economic organizations; representative offices of foreign credit institutions operating in Vietnam;

g) Foreign nationals residing abroad; foreign nationals residing in Vietnam for less than 12 months;

h) Vietnamese citizens residing abroad for 12 months or more;

i) Foreign nationals traveling, studying, receiving medical treatment, and visiting Vietnam (regardless of duration);

In cases where it cannot be determined whether an organization or individual is a Resident or Non-resident, the Governor of the State Bank shall decide.

4. Foreign exchange activities include investment, borrowing, lending, guaranteeing, buying, selling, and other transactions involving foreign exchange.

5. Exchange rate is the price of one unit of foreign currency expressed in Vietnamese currency units.

6. Foreign currency is the currency of another country or a common currency.

7. Foreign currency cash includes banknotes, coins, travel checks, and similar payment instruments in foreign currency as prescribed by law.

8. International standard gold includes gold bars, gold ingots, gold sheets, and gold leaves bearing quality and weight certification marks and manufacturer stamps recognized internationally or domestically.

9. Authorized bank refers to a bank in Vietnam permitted by the State Bank to conduct foreign exchange activities.

10. Foreign exchange counter refers to an organization authorized by the State Bank to carry out foreign currency cash conversion activities. A foreign exchange counter may be directly operated by an authorized credit institution or entrusted to another organization as an agent.

11. Current account transaction refers to transactions between residents and non-residents regarding goods, services, direct investment income, income from investment in securities, interest on foreign loans and deposits, one-way transfers, and other similar transactions as prescribed by law.

12. Current account settlement refers to the implementation of receipts and payments for current account transactions.

13. Capital transactions are transactions transferring capital into Vietnam, transferring capital from Vietnam to foreign countries in the fields of direct investment, investment in securities, foreign borrowing and repayment, foreign lending and debt recovery, and other forms of investment as prescribed by Vietnamese law that increase or decrease assets or liabilities between Residents and Non-residents.

14. Capital transfer is the act of implementing the transfer of capital from abroad into Vietnam or transferring capital from Vietnam to foreign countries for capital transactions.

15. Direct investment is the act of a foreign investor bringing capital or any asset into Vietnam in the form of money or any other asset to conduct investment activities according to the Law on Foreign Investment in Vietnam, or a Vietnamese investor investing abroad with money or any asset to conduct investment activities according to Vietnamese and foreign investment laws.

16. Investment in securities is the act of investing in stocks, bonds, money market instruments, and financial futures instruments issued in Vietnam, or a Resident investing in securities issued abroad.

17. Foreign borrowing and repayment is the act of a Resident borrowing and repaying debts to a Non-resident in all forms recorded in foreign currency.

18. Foreign lending and debt recovery is the act of a Resident lending and recovering debts from a Non-resident in all forms recorded in foreign currency.

19. Overseas account is an account opened by a Resident at banks operating outside the territory of Vietnam.

 

PART II
OPENING AND USING FOREIGN CURRENCY ACCOUNTS OF RESIDENTS AND NON-RESIDENTS

Article 5. Opening and using foreign currency accounts within the country for Residents

1. A Resident organization with foreign currency revenues from current transactions, capital transactions, and other lawful foreign currency sources may open and maintain a foreign currency account at authorized banks and use the foreign currency in the account for the following purposes:

a) Paying for imported goods and services to foreign entities;

b) Paying for goods and service charges to organizations and individuals within the country authorized to receive foreign currency;

c) Repaying domestic foreign currency loans and foreign borrowings;

d) Selling to authorized foreign exchange banking organizations;

đ) Investing in securities and other financial instruments in foreign currency according to Vietnamese laws on securities investment and other financial instruments;

e) Converting into foreign currency payment instruments according to the law;

g) Contributing capital for investment according to the Law on Foreign Investment in Vietnam or other projects as prescribed by law;

h) Transferring foreign currency out of the country according to the Law on Foreign Investment in Vietnam and other relevant laws;

i) Transferring foreign currency for overseas investment according to Vietnamese laws on overseas investment;

k) Withdrawing foreign currency cash or transferring funds for personal expenses when sent abroad to work for an organization; paying salaries, bonuses, and allowances to Residents and Non-residents who are foreigners working for that organization.

2. A Resident individual with foreign currency transferred through a bank from abroad or carried into Vietnam upon entry and confirmed by customs, and other lawful foreign currency sources in Vietnam, may open and maintain a foreign currency account at authorized banks and use the foreign currency in the account for the following purposes:

a) Paying for goods and service charges to organizations and individuals abroad according to the law;

b) Paying for goods and service charges to organizations and individuals within the country authorized to receive foreign currency;

c) Transferring out of the country for purposes specified in Article 14 of this Decree;

d) Selling to authorized foreign exchange banking organizations;

đ) Withdrawing foreign currency cash for purposes as prescribed by law;

e) Investing in securities and other financial instruments in foreign currency according to Vietnamese laws on securities investment and other financial instruments;

g) Converting into foreign currency payment instruments according to the law;

h) Giving, bequeathing, or gifting according to the law;

i) A Resident individual who is a foreigner may transfer the foreign currency in their foreign currency account out of the country according to Vietnamese laws on foreign exchange management.

3. A Resident individual with foreign currency deposited in a foreign currency savings account at authorized banks and receiving interest rates in foreign currency according to the foreign currency deposit interest rate regime has the right to withdraw both principal and interest in foreign currency.

Article 6. Opening and using foreign currency accounts within the country for Non-Residents

A Non-Resident with foreign currency transferred into Vietnam through a bank or carried into Vietnam upon entry and confirmed by customs, and other lawful foreign currency sources in Vietnam, may open and maintain a foreign currency account (hereinafter referred to as the Non-Resident's foreign currency account) at authorized banks and use the foreign currency in the account for the following purposes:

1. Paying for goods and service charges to organizations and individuals abroad;

2. Paying for goods and service charges to organizations and individuals within the country authorized to receive foreign currency;

3. Selling to authorized foreign exchange banking organizations;

4. Converting into foreign currency payment instruments according to the law;

5. Transferring foreign currency out of the country;

6. Withdrawing foreign currency cash or transferring funds for personal expenses when sent abroad to work for an organization, paying salaries, bonuses, and allowances to Residents and Non-residents who are foreigners working for the Non-Resident's organization;

7. Withdrawing foreign currency cash for other purposes as prescribed by law;

8. Transferring to another Non-Resident's foreign currency account;

9. Giving, bequeathing, or gifting according to the law.

Article 7. Rights to use foreign currency by individuals

On the territory of Vietnam, a Resident or a Non-Resident individual with foreign currency has the right to store, carry, deposit at a bank, and use the foreign currency according to Clause 2, Clause 3, Article 5, and Article 6 of this Decree, or sell to authorized foreign exchange banking organizations and exchange foreign currency voluntarily.

Article 8. Opening a Vietnamese Dong account domestically and using Vietnamese Dong on the account of non-residents

Non-residents, which are organizations or individuals having Vietnamese Dong with foreign currency origins and other lawful income in Vietnamese Dong, may open and maintain a Vietnamese Dong account (hereinafter referred to as the non-resident's Vietnamese Dong account) at banks and use Vietnamese Dong on such accounts for the following purposes:

1. Paying for goods and services rendered by organizations and individuals within the country;

2. Purchasing foreign currency and transferring it abroad in accordance with the provisions of the law;

3. Withdrawing Vietnamese Dong cash for spending in Vietnam;

4. Transferring money to the Vietnamese Dong account of residents and other non-residents;

5. Lending, giving, or bequeathing according to the provisions of the law.

Article 9. Opening and Using Foreign Accounts by Residents

1. Residents include Vietnamese economic organizations, foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam, and credit institutions in Vietnam that are granted permission to open and use foreign accounts if they operate and conduct business in the following fields and scopes:

a) International trade activities in the aviation, maritime, postal service, insurance, tourism, labor export, and contracting projects abroad sectors;

b) Implementing foreign borrowing and repayment;

c) Being permitted by competent authorities to establish branches or representative offices abroad;

d) Being allowed to engage in foreign exchange operations abroad;

đ) Other cases approved by the Prime Minister.

2. Residents include state agencies, armed forces units, political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, charitable funds of Vietnam operating in Vietnam that are granted permission to open and use foreign currency accounts abroad if they operate in the following fields and scopes:

a) Implementing foreign borrowing and repayment of the Government;

b) Receiving foreign aid;

c) Other cases approved by the Prime Minister.

3. Residents specified in Clause 1 and Clause 2 of this Article who are permitted to open foreign accounts must report to the State Bank about the situation of using foreign accounts opened abroad. The opening, use, and closure of foreign accounts by these entities must comply with the provisions in the permit.

4. Residents include diplomatic agencies, consular agencies, armed forces, and representatives of political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, charitable funds of Vietnam or Vietnamese citizens during their stay abroad that are permitted to open and use foreign currency accounts abroad according to the laws of the host country. Upon termination or expiration of their stay abroad, they must close the account and transfer the entire balance back to the home country. If there is a need to leave the balance abroad, they must follow the regulations of Vietnamese law.

Article 10. Management of Opening and Using Domestic and Foreign Accounts

1. The State Bank stipulates the conditions and procedures for opening, using, and closing foreign currency accounts of residents and non-residents domestically, and the conditions and procedures for opening, using, and closing Vietnamese Dong accounts of non-residents domestically.

2. The State Bank stipulates the conditions and procedures for granting and revoking permits to open foreign accounts for residents mentioned in Clause 1 and Clause 2 of Article 9 of this Decree.

3. Banks must maintain ledgers to monitor and record the foreign currency accounts of residents and non-residents, and the Vietnamese Dong accounts of non-residents in accordance with the regulations of the State Bank.

When opening accounts for customers and implementing account holder requests, banks must comply with the provisions of this Decree and other relevant laws.

 

CHAPTER III
RECURRING TRANSACTIONS

Article 11. Repatriating foreign currency from recurring sources. Vietnamese residents that are organizations with foreign currency from recurring sources abroad must repatriate all foreign currency to Vietnam in accordance with the regulations of the State Bank and deposit it into foreign currency accounts opened at authorized banks.

Article 12. The obligation of Resident Subjects that are organizations to sell foreign currency

Vietnamese economic organizations, foreign-invested enterprises, and foreign parties participating in joint venture contracts guaranteed by the Vietnamese Government for foreign exchange balancing, foreign company branches, foreign contractors, joint venture contractors with foreign parties, state agencies, armed forces units, political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, charitable funds of Vietnam must sell the foreign currency received from recurring sources to authorized banks at the ratio prescribed by the Prime Minister for each period.

Article 13. Right to Purchase Foreign Currency for Organizations

1. Vietnamese residents that are economic organizations, foreign company branches, foreign contractors, joint venture contractors with foreign parties, credit institutions in Vietnam, state agencies, armed forces units, political organizations, socio-political organizations, social organizations, occupational social organizations, social funds, charitable funds of Vietnam are entitled to purchase foreign currency from authorized banks to meet recurring transactions or other permitted transactions based on presenting valid documents and certificates.

2. Vietnamese residents that are foreign-invested enterprises and foreign parties participating in joint venture contracts are entitled to purchase foreign currency from authorized banks to meet recurring transactions or other permitted transactions in accordance with the regulations on foreign exchange management in the field of direct foreign investment in Vietnam.

3. Non-residents are diplomatic missions, consular offices, representative offices of international organizations, representative offices of intergovernmental organizations, representative offices of non-governmental organizations, armed forces, political organizations, social-political organizations, social organizations, occupational social organizations of foreign countries, representative offices of foreign economic organizations, and foreign credit institutions operating in Vietnam with sources of income in Vietnamese dong from issuing visas, various consular fees, and other lawful transactions may purchase foreign currency and transfer foreign currency out of the country through permitted banks based on presenting relevant documents.

Article 14. Purchase and Transfer of Foreign Currency by Individuals

1. Residents who are Vietnamese citizens requiring foreign currency to transfer subsidies, inheritances for family members and relatives abroad or for travel, study, work, visitation, medical treatment, membership fees, and other fees for foreign countries shall be permitted to purchase, transfer, and carry foreign currency out of the country based on presenting relevant documents as stipulated by the State Bank of Vietnam.

2. Residents who are foreigners working in organizations in Vietnam with salaries, bonuses, allowances, and other lawful income in foreign currency may transfer and carry such foreign currency out of the country; if in Vietnamese dong, they may purchase foreign currency at permitted banks based on presenting relevant documents and confirming the fulfillment of financial obligations as prescribed by law.

3. Non-residents who are foreigners with lawful income in foreign currency may transfer and carry such foreign currency out of the country; if in Vietnamese dong, they may purchase foreign currency at permitted banks based on presenting relevant documents and confirming the fulfillment of financial obligations as prescribed by law.

Article 15. Carrying Foreign Currency Cash, Vietnamese Dong in Cash, and Standard International Gold When Entering and Leaving the Country

1. Individuals carrying foreign currency cash, Vietnamese dong in cash, and standard international gold exceeding the limits set by the Governor of the State Bank of Vietnam when entering or leaving Vietnam must declare to Customs at the border checkpoint.

In cases where individuals bring standard international gold exceeding the limit set by the Governor of the State Bank of Vietnam upon entry, they must deposit the excess gold at the Customs warehouse for carrying it out upon exit or selling it according to the regulations of the State Bank of Vietnam.

2. Individuals carrying foreign currency cash, Vietnamese dong in cash, and standard international gold exceeding the amount declared to Customs upon entry or exceeding the limit set by the Governor of the State Bank of Vietnam must have a permit from the State Bank of Vietnam.

3. The Governor of the State Bank of Vietnam sets the limits for carrying foreign currency cash, Vietnamese dong in cash, and standard international gold when entering and leaving the country during each period.

 

PART IV
CAPITAL TRANSACTIONS

Article 16. Repatriation of Foreign Currency from Capital Transactions. Resident entities receiving foreign currency from capital transactions abroad must repatriate the entire amount to Vietnam and deposit it into foreign currency accounts opened at permitted banks; if kept abroad, it must comply with Vietnamese law. The sale of foreign currency obtained from capital transactions to permitted banks must be conducted based on agreements.

Article 17. Management of Foreign Borrowing and Lending, Foreign Loan Disbursement and Recovery

1. The Government uniformly manages state activities related to foreign borrowing and lending, loan disbursement and recovery. The implementation of management over foreign borrowing and lending, loan disbursement and recovery is carried out according to specific provisions of the law.

2. Resident entities which are Vietnamese economic organizations, foreign-invested enterprises, credit institutions in Vietnam when borrowing and repaying loans or disbursing and recovering loans from abroad must register and report the implementation of the loan with the State Bank of Vietnam in accordance with the laws on managing foreign debt.

3. The transfer of funds for implementing foreign borrowing and lending, loan disbursement and recovery by Vietnamese economic organizations, foreign-invested enterprises, and credit institutions in Vietnam must be conducted through permitted banks and can only be executed after registration with the State Bank of Vietnam.

Article 18. Direct investment

1. Direct Investment in Vietnam

a) Foreign investors are encouraged to transfer foreign exchange investment capital from abroad into Vietnam in accordance with the Law on Foreign Investment in Vietnam.

b) Foreign investment capital in cash must be transferred into an account opened at a bank operating in Vietnam and used for the intended purpose as specified in the investment license issued by competent Vietnamese authorities.

c) Economic organizations with foreign investment capital must report the implementation of investment capital and the repatriation of profits to the State Bank of Vietnam.

d) Foreign investors may transfer foreign currency out of the country to repay principal, interest, and fees on foreign loans, transfer investment capital, reinvestment capital, profits, and other lawful income according to the Law on Foreign Investment in Vietnam.

2. Direct Investment Abroad

a) Vietnamese investors may transfer capital abroad for investment in accordance with Vietnamese law on foreign investment. Foreign investment capital in cash, assets (in intangible or tangible form) of Vietnamese investors must be registered with the State Bank of Vietnam.

b) Foreign investment capital in cash, assets (in intangible or tangible form) of Vietnamese investors must be registered with the State Bank of Vietnam.

c) Upon the end of the fiscal year or termination of investment abroad, Vietnamese investors must repatriate all profits, other lawful income, or capital to Vietnam and report to the State Bank of Vietnam.

d) In cases where profits are used for reinvestment abroad or extending the duration of investment abroad, Vietnamese investors must register with the State Bank of Vietnam.

Article 19. Investment in Securities Instruments

1. Non-residents may invest in securities denominated in foreign currencies that are permitted to be issued in Vietnam. The conditions and procedures for investing in such securities shall be carried out in accordance with the provisions of the Securities Law and other relevant laws.

2. Upon approval by the State Bank, residents may invest in securities denominated in foreign currencies issued by non-residents abroad.

Article 20. FOREIGN EXCHANGE MANAGEMENT IN THE CASE OF SETTLING ABROAD

1. Vietnamese citizens who are permitted to exit the country to settle abroad may purchase, transfer, and carry foreign currencies and international standard gold out of the country in accordance with the provisions of the law.

2. Foreign individuals who are permitted to enter Vietnam to settle may bring, transfer foreign currencies and international standard gold into Vietnam in accordance with the provisions of the law. The use of foreign currencies and international standard gold must comply with the provisions of this Decree and other current regulations related to foreign exchange management.

 

CHAPTER V
FOREIGN EXCHANGE ACTIVITIES OF CREDIT ORGANIZATIONS AND FOREIGN EXCHANGE BROKERS

Article 21. Issuance of foreign exchange operation permits

The State Bank has the authority to issue, amend, extend, and revoke foreign exchange operation permits for credit organizations and foreign exchange brokers acting as agents for credit organizations authorized to conduct foreign exchange operations.

Article 22. Scope of foreign exchange activities

When conducting foreign exchange activities, credit organizations and foreign exchange brokers must comply with the contents recorded in their permits, the provisions of this Decree, and other relevant legal regulations.

Article 23. Conditions for being permitted to conduct foreign exchange activities

a.Credit institutions are only permitted to provide foreign currency reception andpayment services after being granted a foreign exchange operation permit by theState Bank of Vietnam (which includes the provision of foreign currency receptionand payment services).

a) Possessing adequate equipment and material conditions to meet foreign exchange activities;

b) Having managers and staff knowledgeable about foreign exchange activities and capable of performing such activities;

c) Being capable of executing international payment and international credit transactions.

2. For foreign exchange brokers

a) Having a convenient trading location or a place with demand for currency exchange;

b) Possessing adequate equipment and material conditions to meet currency exchange activities;

c) Having staff knowledgeable about treasury operations and capable of performing currency exchange transactions;

d) Having an agency contract with a credit organization authorized to conduct foreign exchange operations when acting as an agent.

Article 24. Granting and recovering domestic loans in foreign currencies

1. Credit organizations engaged in foreign exchange operations may grant loans in foreign currencies to residents to pay for imported goods and services from abroad for business purposes in accordance with the State Bank's regulations on granting foreign currency loans.

2. The recovery of debts from foreign currency loans can be made in foreign currencies or Vietnamese dong according to the agreement between the credit organization engaged in foreign exchange operations and the borrower (this provision does not apply to foreign-invested enterprises required to balance their own foreign currencies).

Article 25. Issuing securities denominated in foreign currencies

Credit organizations engaged in foreign exchange operations are permitted to issue or act as agents for issuing various types of foreign currency-denominated deposit certificates, bonds, and other securities to raise funds from domestic and foreign organizations and individuals upon approval by the State Bank.

Article 26. Importing and exporting physical foreign currencies and securities denominated in foreign currencies

Credit organizations engaged in foreign exchange operations may import and export physical foreign currencies and foreign currency-denominated securities to serve their monetary business activities in accordance with the State Bank's permit.

Article 27. Maintaining foreign exchange status and Vietnamese dong status

Credit organizations authorized to engage in foreign exchange operations must maintain their foreign exchange status or Vietnamese dong status in accordance with the State Bank's regulations.

Article 28. Responsibilities of credit organizations engaged in foreign exchange operations regarding the posting of exchange rates and foreign currency transactions

1. Credit organizations engaged in foreign exchange operations must post buying and selling exchange rates for foreign currencies in accordance with the State Bank's regulations. Posting exchange rates constitutes a commitment to foreign currency transactions with customers.

2. Credit organizations engaged in foreign exchange operations have the obligation to meet legitimate foreign currency needs of customers within the scope of their existing foreign currency sources. Transactions with customers must be conducted at the posted exchange rates.

Article 29. Checking documents

When conducting foreign exchange transactions at the request of customers, credit organizations engaged in foreign exchange operations are responsible for checking documents and certificates in accordance with actual transactions as stipulated by this Decree and other relevant laws on foreign exchange management.

Article 30. Inspection, supervision, and reporting

Credit organizations engaged in foreign exchange operations and foreign exchange brokers must be subject to inspection, supervision, and reporting systems as prescribed by law.

 

Chapter VI
MANAGEMENT OF INTERNATIONAL STANDARD GOLD

Article 31. Tasks and powers of the State Bank in managing international standard gold

In managing international standard gold, the State Bank has the following tasks and powers:

1. Drafting and submitting to competent authorities projects of laws and other projects concerning the management of international standard gold, and promulgating regulatory legal documents on the management of international standard gold within its authority;

2. Issuing and revoking licenses for credit organizations and gold trading enterprises to operate international standard gold domestically and abroad;

3. Organizing and operating the international standard gold market domestically;

4. Issuing and revoking licenses for the import and export of international standard gold for credit organizations and gold trading enterprises authorized to operate gold;

5. Supervising the gold trading activities of credit organizations and gold trading enterprises;

6. Inspecting and auditing the implementation of legal regulations on the management of international standard gold;

7. Conducting purchases and sales of international standard gold on the domestic market, importing and exporting international standard gold for national monetary policy objectives; purchasing and selling international standard gold on the international market and conducting other international standard gold transactions as prescribed by law;

8. Performing other tasks and powers related to the management of international standard gold as prescribed by law.

Article 32. Use of international standard gold

1. The State Bank may use international standard gold for:

a) National foreign exchange reserves and international payments;

b) Purchasing, selling, and conducting other transactions with credit institutions and businesses permitted to trade in international standard gold;

c) Other purposes when authorized by the Prime Minister.

2. Credit institutions and businesses permitted to trade in international standard gold may use international standard gold for:

a) Purchasing, selling, and conducting other transactions with the State Bank, credit institutions, and other businesses permitted to trade in international standard gold;

b) Other purposes when authorized by the Prime Minister.

3. Residents and non-residents who legally possess international standard gold have the right to store, transport, deposit, and sell it to credit institutions and businesses permitted to trade in international standard gold.

4. It is strictly prohibited to buy, sell international standard gold in the domestic market outside the scope specified in Clauses 1, 2, and 3 of this Article and to use international standard gold for exchange, payment of goods, and service charges across borders under any form.

Article 33. Management of gold that is not international standard gold

The management of gold that is not international standard gold shall be carried out in accordance with separate provisions of the law.

 

Chapter VII
FOREIGN EXCHANGE RATE OF THE VIETNAM DONG

Article 34. Principles for determining the foreign exchange rate

The foreign exchange rate of the Vietnam Dong against other foreign currencies is formed based on the supply and demand of foreign currencies in the market, regulated by the State.

Article 35. Determination and announcement of the foreign exchange rate

The State Bank is responsible for determining and announcing daily the foreign exchange rate between the Vietnam Dong and certain foreign currencies.

 

Chapter VIII
INFORMATION AND REPORTING

Article 36. Provision of information by organizations and individuals

Residents in Vietnam or abroad and non-residents in Vietnam engaged in foreign exchange activities must provide information and data as required by the State Bank in accordance with the provisions of the law.

Article 37. Rights and responsibilities of the State Bank and credit institutions

1. The State Bank and credit institutions permitted to conduct foreign exchange operations may request residents in Vietnam or abroad and non-residents in Vietnam to provide necessary information and data related to foreign exchange and foreign exchange activities to fulfill their tasks when applying the provisions of this Decree.

2. The State Bank is responsible for issuing, amending, and supervising the implementation of reporting systems, analyzing, and forecasting information on foreign exchange situations and foreign exchange activities both domestically and internationally to serve the construction and management of foreign exchange policies by the State.

The State Bank and credit institutions conducting foreign exchange operations may exchange and provide foreign exchange and foreign exchange activity information services to organizations and individuals in accordance with the provisions of the law.

Every individual working at the State Bank and credit institutions has the responsibility to keep confidential and bear responsibility for classified information within their industry received in accordance with the provisions of this Decree.

 

CHAPTER IX
REWARD AND VIOLATION HANDLING

Article 38. Awards

Organizations and individuals who achieve outstanding results in foreign exchange activities contributing to promoting national economic development, detecting, reporting, and preventing violations of foreign exchange laws and foreign exchange activities shall be rewarded according to the provisions of the law.

Article 39. Violations concerning foreign exchange and foreign exchange activities

Violations concerning foreign exchange and foreign exchange activities include:

1. Engaging in foreign exchange business without a permit or engaging in foreign exchange business not in accordance with the contents recorded in the permit issued by the State Bank;

2. Conducting foreign exchange activities after being suspended, terminated, or having the foreign exchange business permit revoked or expired;

3. Opening and using foreign currency accounts abroad without permission;

4. Having foreign currency deposits abroad without permission or having foreign currency deposits abroad exceeding the prescribed limit;

5. Transferring or carrying foreign exchange out of the country, buying, selling, paying, and lending foreign exchange contrary to regulations;

6. Not complying with regulations on foreign exchange status or Vietnamese Dong status, posting incorrect exchange rates; purchasing and selling foreign currency not in accordance with posted rates;

7. Concealing or colluding with acts violating foreign exchange laws and foreign exchange activities;

8. Other acts violating foreign exchange laws and foreign exchange activities.

All organizations and individuals have the obligation to detect and report violations of foreign exchange laws and foreign exchange activities.

Article 40. Forms of handling violations

Organizations and individuals committing violations concerning foreign exchange and foreign exchange activities as stipulated in Article 39 of this Decree shall be subject to disciplinary action, administrative sanctions, or criminal prosecution depending on the nature and severity of the violation, and if damage is caused, they must compensate according to the provisions of the law.

Article 41. Administrative sanction handling authority of the State Bank Inspectorate concerning foreign exchange

The State Bank Inspectorate has the authority to handle administrative sanctions against organizations and individuals committing violations in the field of foreign exchange and foreign exchange activities through administrative penalties such as warnings or fines, supplementary penalties such as revoking the right to use permits, confiscating items and means used for administrative violations, and other measures according to the Law on Handling Administrative Violations dated July 6, 1995.

Article 42. Appeals and lawsuits regarding decisions on administrative sanctions

1. Organizations and individuals subject to administrative sanctions in the field of foreign exchange and foreign exchange activities have the right to appeal the decision on administrative sanctions to competent state agencies or file a lawsuit at court. Appeals and lawsuits shall be conducted in accordance with the provisions of the law.

2. During the appeal or lawsuit period, organizations and individuals subject to administrative sanctions must still comply with the decision on administrative sanctions. When there is a decision resolving the appeal from the competent state agency or a judgment or decision of the court that has taken legal effect, it shall be implemented according to the decision resolving the appeal from the competent state agency or according to the judgment or decision of the court.

Article 43. Handling of temporarily detained foreign exchange

Pending the competent authority's decision on handling, foreign exchange temporarily held for processing must be stored at the nearest bank within the latest period of 7 (seven) working days from the date of temporary detention. Seized foreign exchange pursuant to the decision of the competent state agency must be deposited into the State budget.

 

Chapter X
IMPLEMENTING PROVISIONS

Article 44. Effectiveness

1. This Decree shall take effect fifteen days from the date of signature.

2. This Decree replaces Decree No. 161-HĐBT dated October 18, 1988, issued by the Council of Ministers regarding the Regulations on Foreign Exchange Management of the Socialist Republic of Vietnam.

Previous regulations concerning foreign exchange management that conflict with the provisions of this Decree are hereby abolished.

Article 45. Implementation of the Decree

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

The Minister, the Head of a ministerial-level agency, the Head of an agency under the Government, the Chairman of the People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.