THE STATE BANK OF VIETNAM

Circular No. 32/2013/TT-NHNN dated December 26th 2013 of the State Bank of Vietnam on guiding the implementation of regulations on restricting the use of foreign exchange within the territory of Vietnam

Pursuant to the June 16, 2010 Law on the State bank of Vietnam No. 46/2010/QH12;

Pursuant to the June 16, 2010 Law on Credit Institutions No. 47/2010/QH12;

Pursuant to Ordinance on foreign exchange No. 28/2005/PL-UBTVQH11 dated 13 December 2005 and Ordinance No. 06/2013/PLUBTVQH13 dated March 18, 2013, amending and supplementing several Articles of Ordinance on foreign exchange; 

Pursuant to the Government’s Decree No. 156/2013/ND-CP dated November 11, 2013, defining the functions, tasks, powers and organizational structure of the State bank of Vietnam;

At the proposal of Department of Foreign Exchange Management;

The Governor of the State bank of Vietnam issues the Circular guiding the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam.

Article 1. Scope of regulation

This Circular guides the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam.

>> See also:  Circular No. 09/2004/TT-NHNN dated December 21, 2004 of the State Bank of Vietnam guiding foreign loans and loan repayment by enterprises

Article 2. Subjects of application

1. Organizations and individuals being residents and non-residents and having activities of foreign exchange within Vietnam’s territory.

2. Organizations and individuals being residents involving management, examination, inspection and handling of violations in activities of foreign exchange.

Article 3. Principles used to restrict the use of foreign exchange in the territory of Vietnam

In Vietnam’s territory, except for the cases allowed to use foreign exchange specified in Article 4 of this Circular, all transactions, payments, listing, advertisements, quotations, pricing, prices in contracts, agreements other similar forms (including conversion or adjustment of prices of goods and services, the value of contracts and agreements) of residents and non-residents are not allowed to be conducted in foreign exchange.

Article 4. Cases allowed to use foreign exchange in the territory of Vietnam

1. Customs agencies, police, border guard and other state agencies at border gates of Vietnam and bonded warehouses are allowed to list in foreign currency and collect in foreign currency by transfer or cash from non-residents for various taxes, charges for exit and entry visa, charges for provision of services and other charges and fees as prescribed by law.

2. Banks and non-bank credit institutions and branches of foreign banks licensed to do business and provide foreign exchange services (hereinafter abbreviated to the authorized credit institutions) are allowed for transactions, payments, listing, advertisements, quotations, pricing, prices in contracts, agreements in foreign exchange within the scope of business and foreign exchange services permitted by the State Bank of Vietnam (SBV) in accordance with laws.

3. Other organizations licensed to provide foreign exchange services are allowed for transactions and listing in foreign currency within the scope of foreign exchange service provision permitted by the State Bank of Vietnam (SBV) in accordance with laws.

4. Residents being entities with legal person status are allowed to transfer internal capital in foreign currency between their accounts with accounts of their dependent units that have no legal person status and vice versa.

>> See also:  Decree No. 40/2015/ND-CP on penalties for administration violations on regulations of forest management, development, protection and forest product management

5. Residents are allowed to contribute capital in foreign currency by transfer in order to perform foreign investment projects in Vietnam.

6. Residents performing contracts of import and export entrustment shall comply with the following provision:

a) Residents entrusted with import are allowed to write price in contracts of import entrustment in foreign currency and receive payments in foreign currency by transfer for the value of import contract from the import-entrusting party;

b) Residents entrusted with export are allowed to write price in contracts of export entrustment in foreign currency and pay in foreign currency by transfer for the value of export contract for the export-entrusting party.

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