Laws of Vietnam

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope:

This Decree stipulates the formation, monitoring and analysis of Vietnam’s international payment balance.

Vietnam’s international payment balance (hereinafter referred to as the payment balance for short) is the table systematically synthesizing all indexes on economic transactions between residents and non-residents in a given period.

Article 2.- Formation, monitoring and analysis of the payment balance

1. The State Bank of Vietnam (hereinafter referred to as the State Bank) is the agency taking the prime responsibility in forming, monitoring and analyzing the payment balance.

2. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the General Department of Statistics and the General Department of Customs shall coordinate with the State Bank in forming, monitoring and analyzing the payment balance.

Article 3.- Interpretation of terms

In this Decree, the following terms shall be construed as follows:

1. "Economic transactions" are transactions on goods, services, laborers’ incomes, incomes from investment, one-way current transfers, one-way capital transfers, transfer of capital into Vietnam, transfer of capital from Vietnam to foreign countries in the field of direct investment, investment in valuable papers, foreign loan and foreign debt repayment, overseas lending and recovery of overseas debts, other investment forms and other transactions according to provisions of the Vietnamese law that increase or reduce assets or liabilities between residents and non-residents.

2. "Residents" are organizations or individuals, including:

a) State enterprises, private enterprises, companies, cooperatives and other economic organizations of all economic sectors of Vietnam, which are established and conducting business activities in Vietnam (hereinafter referred to as the Vietnamese economic organizations);

b) Foreign-invested enterprises and foreign parties to business cooperation contracts operating under the Law on Foreign Investment in Vietnam; branches of foreign companies, foreign contractors, contractors in partnerships with foreign parties and other economic organizations with foreign capital which conduct business activities 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% of foreign capital, branches of foreign banks conducting business activities in Vietnam (hereinafter referred to as the credit institutions in Vietnam);

d) Vietnamese State agencies, armed forces units, political organizations, socio-political organizations, social organizations, socio-occupational organizations, social funds and charity funds operating in Vietnam;

e) Representative offices: diplomatic missions, consulates, armed forces and political organizations, socio-political organizations, social organizations, socio-occupational organizations, social funds and charity funds of Vietnam operating overseas; Vietnamese citizens working in such organizations and their dependents;

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

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

h) Foreigners residing in Vietnam for 12 months or more;

i) Vietnamese citizens going abroad for tourism, study, medical treatment or visits (regardless of duration).

3. "Non-residents" are organizations and indivi-duals, including:

a) Foreign economic organizations which are established and operating overseas;

b) Vietnamese economic organizations, Vietnam-based foreign-invested enterprises which conduct business activities overseas;

c) Vietnamese credit institutions, foreign credit institutions in Vietnam which are established and conducting business activities overseas;

d) State agencies, armed forces units, political organizations, socio-political organizations, social organizations, socio-occupational organizations, social funds and charity funds of foreign countries operating overseas;

e) Diplomatic missions, consular offices, representative offices of international organizations, representative offices of inter-governmental organizations, representative offices of such organizations as: non-governmental organizations, armed forces and political organizations, socio-political organizations, social organizations, socio-occupational organizations of foreign countries operating in Vietnam; foreigners working in such organizations and their dependents;

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

g) Foreigners residing in foreign countries; foreigners residing in Vietnam for less than 12 months;

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

i) Foreigners coming to Vietnam for tourism, study, medical treatment and visits (regardless of duration).

In cases where an organization or individual is not yet identified as a resident or non-resident, the State Bank Governor shall decide.

4. "Service revenues and expenses" are revenues from and expenses for transportation, tourist, postal, telecommunications, insurance, aviation, banking, information supply and construction services and other services between residents and non-residents.

5. "Incomes of laborers" are wages, rewards and other income amounts in cash or in kind paid by non-residents to residents and vice versa.

6. "Incomes from investment" are amounts generated from direct investment yields, interests from investment in valuable papers and mature loan interests between residents and non-residents.

7. "One-way current transfers" are non-refundable aids, donations, gifts and other transfers in cash or in kind for consumption purpose, transferred by non-residents to residents and vice versa.

8. "One-way capital transfers" are non-refundable aids for investment purpose, forgiven debt amounts between residents and non-residents; properties in cash or in kind brought overseas by migrant residents and those brought into Vietnam by immigrant non-residents.

9. "Net foreign-currency assets" mean the difference between the foreign-currency assets and foreign-currency liabilities reflected on the general balance sheet of monetary statistics of the State Bank and credit institutions.

10. "Changes in net foreign-currency assets" mean the increase or reduction of the net foreign-currency assets at the beginning and the end of the reporting period.

11. "Faults and errors" reflecting the difference due to statistical errors of all items in the payment balance.

Chapter II

FORMATION OF THE PAYMENT BALANCE

Article 4.- The payment balance includes the forecast payment balance and the actual payment balance

1. The forecast payment balance is formed on the basis of economic-financial indexes forecast for the coming period;

2. The actual payment balance is formed on the basis of economic-financial data actually arising in the reporting period.

Article 5.- The principles for forming the payment balance

1. The payment balance reflects all indexes on economic transactions between residents and non-residents.

2. The payment balance is formed in an appropriate currency unit selected by the State Bank Governor.

3. The statistical data on economic transactions shall be collected at the time of ownership transfer.

4. The value of economic transactions shall be calculated according to the market prices and converted into an appropriate currency unit at the exchange rate prescribed by the State Bank.

Article 6.- Structure and principal content of the payment balance

1. The current balance is synthesized from all indexes on economic transactions between residents and non-residents for goods, services, laborers’ incomes, incomes from direct investment, incomes from investment in valuable papers, interest of foreign loans and deposits, one-way current transfers and other transactions according to provisions of law.

2. Capital and financial balance is synthesized from all indexes on economic transactions between residents and non-residents for transfer of capital from overseas into Vietnam and transfer of capital from Vietnam overseas in the field of direct investment, investment in valuable papers, borrowing and repayment of foreign loans, overseas lending and recovery of loans, one-way capital transfers, other investment forms and other transactions according to provisions of Vietnamese law that increase or reduce the assets or liabilities.

3. The overall balance is synthesized from the current balance and the capital and financial balance.

4. The offset part is synthesized on the basis of changes in the net foreign-currency assets, over-due debts and other sources of financial support.

The payment balance’s content is detailed in Appendix 1 promulgated together with this Decree.

Article 7.- The responsibilities of ministries and branches in forming the payment balance

1. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the General Department of Statistics, the General Department of Customs and the concerned ministries and branches shall have to supply information, forecast and actual data on economic transactions between residents and non-residents and other relevant data to the State Bank according to the detailed items specified in Appendix 2 promulgated together with this Decree.

2. The State Bank shall have to assume the prime responsibility to:

a) Determine in detail the content and scope of the to-be-gathered information and data on the payment balance which rests with the ministries, branches, credit institutions and other economic organizations;

b) Coordinate with the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the General Department of Statistics and the General Department of Customs in forming the forecast payment balance and actual payment balance of Vietnam for each period;

3. The State Bank shall coordinate with the General Department of Statistics and the concerned ministries and branches in conducting statistical surveys with regular and irregular samplings to gather information and data necessary for forming payment balance.

Article 8.- The reporting and data informing time limits

1. The time limits for informing data to the State Bank:

a) The concerned ministries and branches as defined in Clause 1, Article 7 of this Decree shall have to inform the quarterly forecast data on the 15th of the last month of the preceding quarter at the latest (according to Appendix 2), and the annual forecast data on the 10th of September of the preceding year at the latest;

b) The concerned ministries and branches as defined in Clause 1, Article 7 of this Decree shall have to inform the quarterly actual data by the 20th of the first month of the following quarter (according to Appendix 2), and the annual actual data on the 31st of January of the following year at the latest;

c) Other credit institutions and economic organizations shall have to supply monthly information and data by the 20th of the following month at the latest; and the quarterly and annual information and data according to Point b, Clause 1 of this Article.

2. The time limits for the State Bank to report the payment balance to the Prime Minister:

a) Reports on the quarterly forecast payment balance must be made on the 25th of the last month of the preceding quarter at the latest, and the annual forecast payment balance on the 25th of September of the preceding year at the latest;

b) Reports on the performance of the quarterly actual payment balance must be made on the last working day of the first month of the following quarter at the latest; the annual actual payment balance on the 10th of February of the following year.

Chapter III

MONITORING AND ANALYZING THE PAYMENT BALANCE

Article 9.- The State Bank shall have to:

1. Assume the prime responsibility and coordinate with the Ministry of Planning and Investment, the Ministry of Trade, the Ministry of Finance, the General Department of Statistics and the General Department of Customs in monitoring and analyzing the actual payment balance and forecast payment balance, inquiring into the causes of the surplus or deficit of the payment balance, then proposing measures to better the payment balance to the Government.

2. Take initiative in administering the monetary policy and credit activities, managing foreign exchange and proposing measures to manage the foreign borrowing and debt repayment by enterprises, in order to better the payment balance;

3. Provide the actual payment balance and forecast payment balance sheets to the concerned ministries and branches;

4. Submit to the Prime Minister the forecast payment balance and the actual payment balance together with the reports analyzing the payment balance.

Article 10.- The Ministry of Planning and Investment shall have to monitor and analyze the payment balance’s effects on the macro-economic indexes, and propose to the Government guidelines, policies and measures for economic administration.

Article 11.- The Ministry of Trade shall have to monitor and analyze the effects of export and import on the payment balance, then propose the trade measures and policies in order to ensure the trade balance.

Article 12.- The Ministry of Finance shall have to adopt the administration of fiscal year’s policies, and propose the fiscal year’s measures and policies for budgetary revenues and expenditures related to foreign borrowings and debt repayment, in order to ensure the capital and financial balance.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 13.- This Decree takes effect 15 days after its signing.

Article 14.- All violations of this Decree’s provisions on the information supplying and reporting contents, regime and time limits shall be administratively sanctioned according to provisions of law.

Article 15.- The State Bank Governor shall have to guide and inspect the implementation of this Decree.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI

Appendix 2

INFORMATION AND DATA TO BE SUPPLIED TO THE STATE BANK

1. The Ministry of Planning - Foreign direct investment in Vietnam;

and Investment: - Vietnam’s overseas direct investment;

- Export and import of goods and services;

- Foreign borrowing and debt repayment;

- Overseas lending and recovery of loans;

- Foreign aids to Vietnam;

- Vietnam’s aids to foreign countries.

2. The Ministry of Finance: - Borrowing and repayment of he Government’s
foreign loans;

- Overseas lending and recovery of the Government’s loans;

- The Vietnamese Government’s aids to foreign countries;

- Aids from foreign governments, non-governmental organizations and international organizations for the Vietnamese Government;

- Transfer of investment profits by foreign investors in Vietnam and Vietnamese investors in foreign
countries to their homelands;

- Incomes of non-residents working in Vietnam;

- Revenues-expenditures of Vietnamese embassies,
consulates, representative offices and diplomatic
delegations in foreign countries;

- Revenues-expenditures from/for insurance and
reinsurance services between residents and non-residents;

- The Government’s investment in valuable papers
issued by non-residents.

3. The Ministry of Trade: Export and import of goods and services.

4. The Ministry of Public Security: - The number of non-residents entering Vietnam

- The number of residents departing from Vietnam.

5. The Ministry for Foreign - The number of residents granted visas for exit out
Affairs: of Vietnam;

- The number of non-residents granted visas for entry
into Vietnam;

- Revenues of individuals being residents working
in embassies, consulates, diplomatic missions and
international organizations being non-residents
operating in Vietnam;

- Revenues-expenditures from/for membership fee and yearly dues of the government and organizations
being residents in relation to governments and
organizations being non-residents;

- Revenues-expenditures of embassies, consulates,
diplomatic missions and representative offices
being residents in relation to international
organizations, governments, organizations and
individuals being non-residents overseas

6. The Ministry of Communications Waterway, land-road and railway transport services
and Transport (including the between residents and non-residents, including:
Corporation and companies of
the maritime service): - Cargo transport freight;

- Passenger transport fare;

- Maritime charge;

- Transport equipment rent;

- Supporting services, such as: cargo storage,
warehousing, loading-unloading, packaging and
repackaging; towage, pilotage, repair, maintenance
of means; rescue activities; agency, supply and
export of crew members, technical expertise of
machinery, equipment and transport means.

7. The Ministry of Culture and Revenues-expenditures from/for use of and trading
Information: in the copyright or author’s right over cultural and
information products and services, such as: films,
tapes, disks, art works, radio and television programs,
advertisements, library, museum, and culture and
sport activities, publications,... between residents
and non-residents.

8. The Ministry of Construction: Revenues and expenditures from/for services of
constructing and/or installing projects within a
time-limit of less than 12 months between
residents and non-residents.

9. The Ministry of Education - The number of residents studying overseas, in which:
and Training: + Those granted scholarship by non-residents;

+ Those granted scholarship by residents;

+ Self-financed ones.

- The number of non-residents studying in Vietnam:

+ The number of non-residents granted scholarship by residents;

+ The number of persons granted scholarship
by non-residents;

+ Self-financed ones.

10. The Ministry of Science, Fees for industrial property rights, informatic and
Technology and Environment: information services, technology transfer and international
cooperation projects, expenses for international cooperation; revenues-expenditures from/for inspection,
expertise and assessment of technologies and
environmental impacts, between residents and non- residents.

11. The Ministry of Labor, War - Revenues-expenditures on the labor and expert
Invalids and Social Affairs: cooperation between the Government and organizations being residents and governments and organizations
being non-residents, including wages, rewards and
other incomes (in kind or in cash) of laborers;

- The number of non-residents granted work permits
in Vietnam.

12. The Ministry of Industry: Export and import of electricity between residents and
non-residents.

13. The Ministry of Health: Revenues-expenditures from/for healthcare services,
medical treatment, cooperation, experts,... between
residents and non-residents.

14. Other ministries and branches: The Ministry of Agriculture and Rural Development,
the Ministry of Aquatic Resources, the Ministry of Defense,
the General Department of Tourism, the Commission
for Physical Training and Sports,... shall inform the
situation and data related to Vietnam’s international payment balance at the State Bank’s requests.

15. The State Securities Residents’ investment in valuable papers issued by
Commission: non-residents, and non-residents’ investment in valuable
papers issued by residents.

16. The General Department of - The gross national income;
Statistics: - Goods export and import;

- Service export and import;

- Other revenue-expenditure amounts related to
the payment balance.

17. The General Department - Export and import of commercial commodities;
of Customs: - Volume of foreign currencies and gold brought into
or out of Vietnam;

- Data on money transferred to Vietnam by overseas
Vietnamese.

18. The Civil Aviation Revenues-expenditures from/for aviation services
Administration: between residents and non-residents, including:

- Air ticket sale money;

- Cargo transport freight;

- Revenues and expenditures from/for airport operations;

- Revenues and expenditures from/for control activities
of the flight control centers;

- Airplanes chartering money;

- Expenses for overseas maintenance and repair of airplanes;

- Other transport services, such as transit fee, fee for flights
across the space territory, regular repair and maintenance
of airplanes, rescue activities, agency fee related to
passenger and cargo transport and other supporting services.

19. The Post and Telecommunications - Postal services, including: transport of mails,
Corporation, the Sai Gon Postal newspapers, magazines, postal parcels and items,
and Telecommunications Service mail-box hiring, export and import of postal stamps
Joint Stock Company, the Military (for collection and souvenir purposes), money
Joint Stock Company... transfer fee;

(including all companies of the - Telecommunications services, including:
postal service): telephone, facsimile, telex, telegraph, network and
internet access, satellite, and other supporting services;

- Revenues-expenditures on membership fee with
international organizations;

- Data on money transferred between residents and
non-residents.

Unit: Million...

1. Goods export and import;

2. Service export and import;

3. Foreign borrowings;

4. Repayment of foreign loans;

5. Foreign aids;

6. Foreign direct investment in Vietnam
and Vietnam’s overseas direct investment;

7. Investment in valuable papers;

8. Current transfers;

9. Capital transfers;

10. Provision of loans to foreign countries;

11. Recovery of loans provided to foreign countries;

12. Other transactions.