Ordinance No. 12/1999/PL-UBTVQH10 dated April 27, 1999 of the Standing Committee of National Assembly on the issuance of government bonds for national construction
THE STANDING COMMITTEE OF NATIONAL ASSEMBLY
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
Hanoi, April 27, 1999
ON THE ISSUANCE OF GOVERNMENT BONDS FOR NATIONAL CONSTRUCTION
In order to bring into full play the people’s patriotism, to create capital sources for national industrialization and modernization and contribute to the national construction and defense;
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;
This Ordinance stipulates the issuance of national construction bonds.
Article 1.- The national construction bonds are issued by the Government in order to mobilize capital from the people for the investment in construction of national important projects and other key projects in service of production and life and to create a material and technical base for the country.
Article 2.- The State bonds shall be purchased on the principle of voluntariness.
The State encourages all Vietnamese organizations and citizens and overseas Vietnamese to purchase government bonds, thus contributing to the national construction.
The Vietnamese State highly appreciates the purchase of government bonds by foreign organizations and individuals.
Article 3.- The State guarantees the bond value and protects the ownership right and other legitimate rights and interests of the government bond owners.
Article 4.- The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Councils and People’s Committees of all levels, the Central Committee of the Vietnam Fatherland Front and its member organizations shall, within their respective tasks and powers, have to organize, guide, propagandize and mobilize organizations and individuals to purchase government bonds for national construction.
THE ISSUANCE AND REPAYMENT OF GOVERNMENT BONDS, THE INTERESTS OF GOVERNMENT BONDS PURCHASERS
Article 5.- The issuance of government bonds shall be based on the demand for capital mobilization in each period.
The Government shall organize and direct the issuance of bonds for national construction under the National Assembly’s resolution(s).
1. The government bonds include:
a) Bonds with proceeds collected and registered in Vietnamese currency;
b) Bonds with proceeds collected and registered in freely convertible foreign currencies;
c) Bonds with proceeds collected and registered in gold.
2. Freely convertible foreign currencies, measuring units and standards of gold used to purchase bonds shall be prescribed by the Government when issuing such bonds.
Article 7.- The government bonds shall be issued in the following forms:
1. Registered bonds and bearer bonds;
2. Bonds with pre-printed denominations and bonds without pre-printed denominations.
Article 8.- The government bonds shall have a term of five years or ten years.
The Government shall specify the terms of bonds when issuing them.
Article 9.- The sizes, designs, patterns and other particulars of the government bonds, as well as the printing, preservation and transport of bonds shall be stipulated by the Government.
1. The bond value shall be guaranteed by the State as follows:
a) The value of bonds with proceeds collected and registered in Vietnamese currency shall be guaranteed with the amounts of money denominated on such bonds plus the inflation rate at the time of bond repayment against the time of bond purchase;
b) The value of bonds with proceeds collected and registered in freely convertible foreign currency(ies) shall be guaranteed with the amounts of such foreign currency(ies) denominated on such State bonds;
c) The value of bonds with proceeds collected and registered in gold shall be guaranteed with the gold category inscribed on such bonds.
2. The bond purchasers shall enjoy an interest rate not lower than 1.5%/year on the amounts of Vietnamese currency, freely convertible foreign currency(ies) or the gold quantities stated on the State bonds. The specific interest rate for each issuance of bonds with five-year or ten-year term shall be prescribed by the Government.
3. The bond interest as stipulated in Clause 2 of this Article shall not be subject to income tax.
1. The Government shall organize and direct the repayment of bonds in a quick and convenient manner and on time; both principal and interest of government bonds shall be repaid in lump-sums at the State Treasury system or at other agencies or organizations designated by the Government.
2. Bonds purchased in Vietnamese currency shall be repaid in Vietnamese currency; bonds purchased in a freely convertible foreign currency(ies) shall be repaid in such foreign currency(ies); bonds purchased in gold shall be repaid in gold of the same category.
3. If owners of bonds with proceeds collected and registered in freely convertible foreign currency(ies), wish to have the bond repayment in Vietnamese currency, such repayment shall be made at the exchange rate(s) announced by the State Bank at the time of repayment as stated on such bonds; if owners of bonds with proceeds collected and registered in gold wish to have the bond repayment in Vietnamese currency, such repayment shall be made at the purchasing price of gold of the same category on the market at the time of repayment as stated on such bonds.
Article 12.-Government bonds can be purchased, sold, donated, inherited or pledged.
Re-purchasers of government bonds, bond donatees and bond inheritors shall have their legitimate rights and interests protected by the State like the government bond purchasers; the government bond pledgees shall have their legitimate rights and interests protected by the State like the property pledgees under the provisions of law.
REWARDS AND HANDLING OF VIOLATIONS
Article 13.- Organizations and individuals that have made achievements in the purchase of government bonds for national construction, in the mobilization of the people to purchase bonds or in the organization of issuance of bonds shall be recommended and/or rewarded by the State according to provisions of law.
Article 14.- Persons who commit acts of counterfeiting the government bonds, hindering the bond issuance or repayment or other acts of violating the provisions of this Ordinance shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability.
Article 15.- Persons who abuse their positions and powers vested to them in the issuance and/or repayment to appropriate or cause loss to the sources of capital mobilized from the issuance of bonds shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability. If damage is caused, the compensation must be made according to the provisions of law.
Article 16.- This Ordinance takes effect after its announcement.
This Ordinance replaces the November 25, 1983 Ordinance on the issuance of government bonds for national construction and the May 30, 1985 Ordinance on the issuance of government bonds for national construction.
The previous stipulations which are contrary to this Ordinance are now annulled.
Article 17.- The Government shall detail and guide the implementation of this Ordinance.
THE STANDING COMMITTEE OF NATIONAL ASSEMBLY
Nong Duc Manh