SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, August 19, 1999
ON ENCOURAGING MONEY TRANSFER OF OVERSEAS VIETNAMESE
In accordance with the Government Organisation Law of September 30, 1992;
In accordance with Government Decree No.63/1998/ND-CP of August 17, 1998, on foreign exchange management;
In accordance with the proposal of the Governor of the State Bank of Vietnam,
Article 1: The Government encourages and supports Overseas Vietnamese in transferring foreign currencies to the mother country on their demand and in consonance with the Vietnamese laws and those of foreign countries where they reside.
The Government also supports those foreigners transferring money into Vietnam for assisting their families and relatives or for other humane purposes. These individuals are treated as Overseas Vietnamese subject to the regulations of this Decision.
Article 2: Explanation of terms and phrases
In this Decision, terms and phrases are interpreted as follows:
1. Foreign currencies noted in this Decision are freely convertible.
2. Domestic recipients can benefit from the amount of foreign currency transferred by Overseas Vietnamese or foreigners from overseas countries.
3. Authorised credit organisations are those operating in Vietnam and allowed by the Sate Bank of Vietnam to perform foreign exchange.
4. International postal financial service providers are those businesses licensed by the Department General of Post and Telecommunications to carry on international postal financial services.
5. International postal financial services include forms of international money transfer and international postal cheques.
Article 3: Application of international treaties
In cases where an international treaty, which the Socialist Republic of Vietnam has signed or participated in, identifies provisions relating to foreign currency transfer into Vietnam and differing from the regulations of this Decision, the transfer of foreign currencies must be in accordance with the provisions of the international treaty.
Article 4: Forms of transferring foreign currencies into Vietnam
Overseas Vietnamese and foreigners are allowed to transfer foreign currencies into Vietnam in the following forms:
1. Transferring foreign currencies via authorised credit organisations;
2. Transferring foreign currencies via international postal financial service providers;
3. Individuals bringing foreign currencies with them into Vietnam.
When entering Vietnam and helping bring into the country foreign currency for recipients, these overseas individuals must declare at the border-gate customs office that amount of foreign currency they are bringing for domestic recipients.
Article 5: Entities allowed to receive foreign currencies transferred by Overseas Vietnamese and pay them to domestic recipients
1. Authorised credit organisations;
2. International postal financial service providers;
Economic organisations authorised by the State Bank to provide services in relation to receiving and paying foreign currencies or those economic organisations acting as agents for credit organisations in domestically paying foreign currencies.
Article 6: Rights of recipients
1. Receiving either foreign currency or Vietnamese dong according to their demand.
2. When receiving foreign currency, the recipient is able to either sell to an authorised credit organisation, transfer to an individual foreign currency deposit account and use it in accordance with existing regulations on management of foreign exchange, save it at an authorised credit organisation, or use it for other purposes in pursuance to the Vietnamese laws.
3. The recipient is not required to pay income tax on amounts of foreign currency transferred from foreign countries.
Article 7: Responsibilities and rights of the State Bank
1. Joining with ministries and branches in widely popularising the policy to encourage the transfer of foreign currencies into Vietnam.
2. Ruling terms and procedures for licensing foreign currency receipt and payment services, identifying the fee rates for money transfer, and guiding authorised foreign currency receipt and payment service entities to reform procedures in favour of recipients.
3. Granting licences to economic organisations qualified for conducting foreign currency receipt and payment services while revoking licences or suspending, over a certain period of time, the operation of authorised credit and economic organisations which violate the regulations of this Decision.
Article 8: Responsibilities of related ministries and branches
1. Ministries, ministerial-level bodies, Government bodies and Centrally-governed provincial and municipal People's Committees, within the scope of responsibilities and rights, must assume the responsibility to co-ordinate with the State Bank in the State management of foreign currency receipt and payment services.
2. The General Department of Customs and the Vietnam Post and Telecommunications Corporation are responsible for reporting to the State Bank about the actual transfers of foreign currencies into Vietnam so that the State Bank, in turn, can and will appraise the situation and report to the Prime Minister. Reports statistics and the actual transfers of foreign currency into Vietnam are made quarterly and must observe the State Bank's regulations.
Article 9: Treatment of violations
Organisations and individuals violating the regulations on foreign currency receipt and payment will be subject to administrative punishments or be prosecuted depending on the seriousness of violations. When damages occur, the transgressors must compensate for losses in accordance with legal guidance.
Article 10: Implementation provisions
1. The Decision becomes effective 15 days after the date of signing. Previous regulations contrary to this decision are null.
2. The State Bank Governor assumes the responsibility for guiding the implementation of this Decision.
Ministers, heads of ministerial-level bodies, heads of Government bodies and chairpersons of Centrally-controlled provincial and municipal People's Committees are responsible for implementing this Decision.
Phan Van Khai