MONTHLY LEGAL UPDATE – 05/2019: LEGAL UPDATE RELATING TO FINANCE AND CREDIT

 

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/05/2019

1.1. Circular No. 03/2019/TT-NHNN amending and supplementing a number of articles of the Circular No. 32/2013/TT-NHNN dated 26 December 2013 of the Governor of the State bank of Vietnam guiding the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam

v  Name of legal document: Circular No. 03/2019/TT-NHNN issued on 29/03/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of the Circular No. 32/2013/TT-NHNN dated 26 December 2013 of the Governor of the State bank of Vietnam guiding the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam (hereinafter referred to as the “Circular No. 03/2019/TT-NHNN”).

v  Effective date: 13/05/2019.

The content should be noted: Adding provisions on cases allowed to use foreign exchange in the territory of Vietnam.

Specifically, Article 1 of Circular No. 03/2019/TT-NHNN stipulates: “"Article 1. Amending and supplementing a number of articles of Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations restricting the use of foreign exchange in Vietnamese territory

Adding point c to Clause 16 of Article 4[1] as follows:

"C) Foreign investors are entitled to deposit, escrow deposit in transferred foreign currency when participating in an auction in the following cases:

(i) Purchasing shares in equitized state enterprises shares approved by the Prime Minister;

(ii) Purchasing of shares, capital contribution of the state in state-owned enterprises, state-invested enterprises undergoing divestment approved by the prime minister;

(iii) Purchasing of shares, contributed capital of state-owned enterprises investing in other state-invested enterprises undergoing divestment approved by the prime minister.

In case of winning an auction, foreign investors shall transfer investment capital according to the provisions of law on foreign exchange management in order to pay the value of the purchase of shares or contributed capital. In case of unsuccessful auctions, foreign investors may remit abroad the amount of deposits or escrowing deposits in foreign currency after subtracting the related expenses (if any).”.”

2. LEGAL DOCUMENTS ISSUED IN 04/2019

2.1. Consolidated document No. 14/VBHN-NHNN guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam

v  Name of legal document: Consolidated document No. 14/VBHN-NHNN issued on 04/04/2019 by the State Bank of Viet Nam guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam.

v  Consolidated date: 04/04/2019.

The content should be noted: Consolidating the provisions stipulated at Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam, effective from 10 February 2014, amended and supplemented by Circular No. 16/2015/TT-NHNN dated October 19, 2015 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 32/2013 / TT-NHNN dated 26/12/2013 of the Governor of the State Bank of Vietnam guiding the implementation of the regulations on restricting the use of foreign exchange in the territory of Vietnam, effective from December 3, 2015 and Circular No. 03/2019/TT-NHNN dated March 29, 2019 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 32/2013/TT-NHNN dated December 26, 2013 2013 by The governor of the State Bank of Vietnam guiding the implementation of the regulations on restricting the use of foreign exchange in the Vietnamese territory, effective from May 13, 2019.

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[1] “Article 4. Cases allowed to use foreign exchange in the territory of Vietnam

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16. Non-residents shall comply with the following provision:

a) They are allowed to transfer in foreign currency for other non-residents;

b) They are allowed for prices in contracts in foreign currency and payment of export goods and services in foreign currency by transfer for residents. Residents are allowed to make quotations, fix prices in foreign currency or receive payments in foreign currency by transfer when they supply goods and services for non-residents.

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