Tiếng Việt| THE STATE BANK | SOCIALIST REPUBLIC OF VIET NAM |
| No: 998/2002/QD-NHNN | Hanoi, September 13, 2002 |
THE STATE BANK GOVERNOR
Pursuant to State Bank Law No.01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No.48/1998/ND-CP of July 11, 1998 on securities and securities market;
Pursuant to the Prime Minister’s Decision No.139/1999/QD-TTg of June 10, 1999 on the rates of foreign parties participation in Vietnam’s securities market;
At the proposal of the director of the Foreign Exchange Management Department,
DECIDES:
Foreign exchange transactions related to the purchase and/or sale of securities listed at securities trading centers by foreign organizations and individuals, including the transfer of capital into Vietnam for purchase and/or sale of securities, conversion of foreign currencies into Vietnam dong, opening and use of Vietnam dong accounts for purchase and/or sele of securities, conversion of Vietnam dong into foreign currencies and transfer of foreign currencies overseas, shall be effected in compliance with the provisions of this Decision and relevant provisions in current documents on foreign exchange management.
Article 2.- Objects of application
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1. Non-residents being organizations established under foreign laws, foreigners (including both residents and non-residents), non-residents being overseas Vietnamese.
2. Organizations and individuals being foreign parties to foreign-invested enterprises in Vietnam that use divided profits or other lawful incomes in Vietnam to purchase and/or sell securities at securities trading centers.
In this Decision, the above-mentioned objects shall be referred collectively to as foreign organizations and individuals.
Article 3.- Capital sources for participating in securities purchase
Foreign organizations and individuals are entitled to use the following capital sources to purchase securities:
1. Foreign currencies transferred from foreign countries into Vietnam according to the current foreign exchange management regulations;
2. Foreign currencies on foreign-currency deposit accounts opened by foreign organizations and individuals mentioned in Article 2 of this Decision at the banks licensed to conduct foreign exchange business activities in Vietnam;
3. Profits divided to foreign organizations and individuals from foreign direct investment activities in Vietnam;
4. Proceeds earned by foreign organizations and individuals from the assignment, liquidation or dissolution related to foreign direct investment activities in Vietnam according to the current regulations;
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6. Wages, bonuses and other lawful incomes of foreign individuals in Vietnam in compliance with the current regulations.
Article 4.- Transfer of capital into Vietnam for securities purchase
Foreign organizations and individuals that transfer foreign currencies from foreign countries into Vietnam to purchase securities shall have to sell such foreign currencies to the banks being foreign custody members (hereinafter referred to as foreign custody members for short) where foreign organizations and individuals open accounts for purchasing and/or selling securities in Vietnam dong.
Article 5.- Securities trading accounts
1. Opening of securities trading accounts in Vietnam dong and securities custody accounts
Foreign organizations and individuals that wish to purchase and/or sell securities listed at securities trading centers shall have to open at a foreign custody member a securities trading account in Vietnam dong and a securities custody account according to the provisions of this Decision and current provisions of the securities and securities market legislation.
2. Use of securities trading accounts in Vietnam dong
Revenues:
a/ From the sale of foreign currencies to foreign custody members;
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c/ From the account transfer from Vietnam-dong accounts of such foreign organizations and individuals in Vietnam according to the current foreign exchange management regulations (if any) into these accounts for purchasing securities;
d/ From the securities sale;
e/ From dividends, bond yields and relevant proceeds from the securities purchase and sale.
Expenditures:
a/ On the purchase of securities and expenses relating to the securities trading;
b/ On the purchase of foreign currencies for transfer overseas.
Article 6.- Purchase of foreign currencies for transfer overseas
1. After fulfilling tax obligations according to the provisions of Vietnamese laws, foreign organizations and individuals shall be entitled to use Vietnam-dong sources in their securities trading accounts to purchase foreign currencies from foreign custody members for transfer overseas.
2. Foreign organizations and individuals shall only be entitled to transfer their investment capital (involved in capital transactions) overseas one (01) year after such capital portion is remitted into Vietnam-dong securities trading accounts opened at foreign custody members, except for cases where it is so permitted by law.
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Article 7.- Regulations on examination of vouchers
Foreign custody members, when performing revenue or expenditure operations on securities trading deposit accounts for foreign organizations and individuals, shall have to examine the following vouchers:
1. For revenue sources:
- For profits earned from direct investment in Vietnam: Copies of investment licenses, written records of the managing boards (or project executive boards, for business cooperation contracts) on the profit division (or turnover division, for business cooperation contracts) with certification by competent tax offices;
- For proceeds from the liquidation or dissolution related to foreign direct investment activities in Vietnam: Decisions on operation termination or dissolution of foreign-invested enterprises or decisions on invalidation of business cooperation contracts, written agreements of parties in enterprises (or those to business cooperation contracts) on the asset liquidation, the competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State (if collected amounts are larger than capital amounts initially contributed);
- For case of capital transfer: Capital transfer contracts already certified by the competent authorities, the competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State (if the capital transfer yields profits);
- Revenues from the supply of goods or provision of services: The competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State;
- Wages, bonuses, lawful incomes of individuals: Depending on the nature of revenues, foreign organizations and individuals must produce the following documents: wage table under labor contracts or labor-employing agencies certifications of bonus amounts or competent authorities written certifications of legality of other revenues (donations, gifts, inheritance, lottery prizes, etc.)
2. For VND expenses for purchasing foreign currencies for transfer overseas: The competent tax offices� written certifications of fulfillment of financial obligations toward the Vietnamese State, for investments from securities at the securities trading centers.
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Article 8.- Responsibilities of foreign custody members
1. Selling foreign currencies: When foreign organizations and individuals wish to purchase foreign currencies for transfer overseas, foreign custody members shall, depending on the banks foreign-currency sources, sell foreign currencies to such foreign organizations and individuals in compliance with the current foreign exchange management regulations.
2. Reporting: Monthly (By the 5th day of the following month at the latest), foreign custody members shall have to report to the State Bank (the Foreign Exchange Management Department) on:
a/ The situation of opening and closing Vietnam-dong securities trading accounts by foreign organizations and individuals at foreign custody members;
b/ The situation of operation of securities trading accounts and the situation of purchasing foreign currencies from foreign custody members for transfer overseas by foreign organizations and individuals;
c/ The situation of operation of securities custody accounts opened by foreign organizations and individuals at foreign custody members.
In case of necessity, foreign custody members shall have to supply information and report thereon at the State Bank’s requests.
Article 9.- Implementation provisions
1. This Decision takes effect 15 days after its signing. The amendments and supplements to this Decision shall be decided by the State Bank Governor.
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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Phung Khac Ke
Foreign Depositing Member
Address:
Fax:
Tel:
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REPORT ON THE OPEN, CLOSE OF SECURITIES TRANSACTION ACCOUNT IN VND OF FOREIGN ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITING MEMBER
(report in month /20......., from ........ to ...........)
To: The State Bank of Vietnam
(the foreign exchange control department)
Name of account holder
Date of opening account
Date of closing account
Code
Nationality
Balance
I. Investment organization
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1.
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2.
3.
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Total
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II. Investment individual
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1.
2.
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3.
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Total
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III. Total
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Foreign Depository Member
DRAWER
CONTROLLER
DIRECTOR
Foreign Depositing Member
Address:
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Tel:
Bank .......
(report in month /20......., from ........ to ...........)
To: The State Bank of Vietnam
(the foreign exchange control department)
Target
Organization
Individual
Total
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I. Beginning balance
II. Transactions in period
1. Receipts
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a. Receipts from foreign remittance
b. Receipts from domestic account transfer
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c. Gains from securities transactions
d. Other receipts
Total
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2. Expenditures
a. Payment for securities purchase
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b. Payment for the purchase of foreign currency for remittance abroad
Total
III. Closing balance (III = I + II)
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B. The purchase, sale of foreign currency between Foreign Depository Member and foreign organizations, individuals (Unit: USD)
I. The purchase of foreign currency
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1. From foreign remittance
2. Other sources
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II. The sale of foreign currency for remittance abroad
Note:
- II. 1.c: Receipts from securities transactions including gains from the sale of securities, receipt of dividends, bond’s interests...... in cash.
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Foreign Depository Member
DRAWER
CONTROLLER
DIRECTOR
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Foreign Depositing Member
Address:
Fax:
Tel:
Bank .......
(report in month /20......., from ........ to ...........)
To: The State Bank of Vietnam
(the foreign exchange control department)
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Depositing securities
The value of securities calculated in VND
I
Investment organization
1
- Share
2
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3
- Certificate of investment funds
4
- Other securities
Total
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II
Investment individual
1
- Share
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- Bond
3
- Certificate of investment funds
4
- Other securities
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III
Total (III = I + II)
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Note:
The value of securities calculated in VND shall be calculated by the quantity of securities multiplies with the closing price of those securities at the most recent transaction session by the reporting time.
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Foreign Depository Member
DRAWER
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DIRECTOR
- 1 Decision No. 1550/2004/QD-NHNN of December 6, 2004, on the foreign exchange control for the purchase, sale of securities by foreign investors in the stock exchange
- 2 Decision No. 1550/2004/QD-NHNN of December 6, 2004, on the foreign exchange control for the purchase, sale of securities by foreign investors in the stock exchange
- 1 Circular No. 10/1999/TT-BTC of January 29, 1999, provisionally guiding the regime of financial management over the securities trading centers
- 2 Decree of Government No.48/1998/ND-CP of July 11, 1998 on securities and securities market
- 3 Law No. 06/1997/QH10 of December 12, 1997 on The State Bank of Vietnam