Nghị định 164/1999/ND-CP

DECREE

CONCERNING THE MANAGEMENT OF VIETNAM’S INTERNATIONAL SETTLEMENT BALANCE

GOVERNMENT

Pursuant to the Law on Governmental Organization dated September 30, 1992;
Pursuant to Law on State Bank of Vietnam 01/1997/QH10 dated December 12, 1997;
According to the proposal of the governor of the State Bank of Vietnam,

DECREES

Chapter I

GENERAL PROVISIONS

Article 1: Scale of implementation

The Decree provides regulations on the establishment, observations and analysis of the Vietnam's international settlement balance.

Vietnam's international settlement balance (hereinafter referred to as the settlement balance) is a systematic summing-up of all norms associated to economic transactions between Residents and Non-residents in a certain period of time.

Article 2: The establishment, observations and analysis of the settlement balance

1. The State Bank of Vietnam (hereinafter referred to the State Bank) is responsible for organizing the establishment, observations and analysis of the settlement balance.

2. The Ministry of Planning and Investment, Ministry of Finance, Ministry of Trade, General Department of Statistics and General Department of Customs are responsible for coordinating with the State Bank to conduct the establishment, observations and analysis of the settlement balance.

Article 3: Definitions of some terms

In this Decree, some terms shall be understood as follows:

1. "Economic transactions" consist of transactions of commodities, services, incomes of employees, investment returns, unilateral current transfers, unilateral transfers of capital, transfers of capital into Vietnam, transfers of capital abroad in fields of direct investment, investments in valuable papers, borrowings of foreign loans, foreign debt payments, and lending and claiming of foreign debts. In addition, they also include other forms of investment and transactions in accordance with Vietnam's existing regulations and laws in-force which help raise or reduce assets or liabilities between Residents and Non-residents.

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

a) State-owned enterprises, private enterprises, companies, co-operatives and other economic organizations which belong to all economic sectors of Vietnam, established and operating in Vietnam (hereinafter referred to as Vietnamese economic organizations);

b) Foreign-invested enterprises and foreign parties involved in business co-operation contracts and operating under the Law on Foreign Investment in Vietnam; foreign companies' branches, foreign contractors, contractors having their names joined with foreign companies, and other foreign-invested economic organizations operating in Vietnam but not following the Law on Foreign Investment in Vietnam;

c) Vietnam's credit organisations, credit joint-ventures, 100 per cent foreign-invested non-banking credit organisations, and foreign banks' branches operating in Vietnam (hereinafter referred to as credit organisations operating in Vietnam);

d) Vietnamese State-owned bodies, army forces, political organisations, socio-political organisations, social organisations, socio-professional organisations, social funds, and charity funds operating in Vietnam;

e) Vietnamese representative bodies: diplomatic corps, consulates, army forces, political organisations, socio-political organisations, social organisations, socio-professional organisations, social funds, and charity funds operating abroad; Vietnamese citizens working for these organisations and their accompanying individuals;

f) Representative offices of Vietnamese economic organisations, foreign-invested enterprises in Vietnam and credit organisations in Vietnam operating abroad;

g) Vietnamese citizens residing in Vietnam, and Vietnamese citizens having resided abroad for a period of less than 12 months;

h) Foreigners having resided in Vietnam for a period of more than 12 months; and

i) Vietnamese citizens travelling, studying, visiting or going abroad for medical examinations (period of residence abroad is not counted).

3. "Non-residents" are organisations or individuals, including:

a) Foreign economic organisations established and operating overseas;

b) Vietnamese economic organisations and foreign-invested enterprises in Vietnam which are operating abroad;

c) Vietnam’s credit organisations and foreign credit organisations in Vietnam which are established and operating abroad;

d) Foreign State-owned bodies, army forces, political organisations, socio-political organisations, social organisations, socio-professional organisations, social funds, and charity funds which are operating abroad;

e) Diplomatic corps; consulates; representative bodies of international organisations; representative bodies of inter-governmental organisations; representative bodies of foreign non-governmental organisations, army forces, political organisations, socio-political organisations, social organisations, and socio-professional organisations operating in Vietnam; and foreigner working for these organisations and their accompanying individuals;

f) Representative offices of foreign economic and credit organisations operating in Vietnam;

g) Foreigners residing abroad and foreigners having resided in Vietnam for a period of less than 12 months;

h) Vietnamese citizens having resided abroad for a period of 12 months or more; and

i) Foreigners travelling, studying, visiting and going for medical examinations in Vietnam (period of residence is not counted).

In cases whereby it is hard to define Residents or Non-residents, the governor of the State Bank is authorised to provide the final decision.

4. "Earnings and expenditures of services" mean all earnings from and expenditures for service activities associated with transportation, tourism, postal, telecommunications, insurance, aviation, banking, information, construction and other services provided between residents and non-residents.

5. "Income of employees" consists of all salaries, wages, and other incomes in cash or kind paid to Residents by Non-residents, or vice versa.

6. "Investment returns" consist of all profitable earnings of direct investment activities, interests from investments in valuable papers, and other interests earned from loan agreements signed between Residents and Non-residents, and vice versa.

7. "Unilateral current transfers" include non-refundable aid, gifts, and other current transfers in cash or kind from Residents to Non-residents for consumptive purposes, and vice versa.

8. "Unilateral transfer of capital" includes non-refundable aids for investment purposes, debts cleared between Residents and Non-residents, all assets in cash or kind brought into Vietnam by Non-residents or taken away from Vietnam by Residents.

9."Net assets in foreign currencies" are understood as the differential between assets in foreign currencies and liabilities in foreign currencies which are presented on the monetary survey balances of the State Bank and credit organisations.

10. "Exchanges of net assets in foreign currencies" are understood as the increase or reduction of net assets in foreign currencies at the starting or ending points of reports.

11. "Mistakes and shortcomings" reflect the differential caused by mistakes and shortcomings in completing statistics of all activities in the settlement balance.

Chapter II

THE ESTABLISHMENT OF THE SETTLEMENT BALANCE

Article 4: The settlement balance includes the forecast and real settlement balances

1. The forecast settlement balance is established on the basis of economic and financial targets forecast for the coming period;

2. The real settlement balance is established on the basis of economic and financial statistics recorded during the period of making reports.

Article 5: Principles of the establishment of the settlement balances

1. The settlement balance reflects all targets associated to economic transactions between Residents and Non-residents.

2. The settlement balance is established with the selections of suitable currency units by the governor of the State Bank.

3. Statistics associated to economic transactions are completed at the point of transferring the ownership.

4. The value of economic transactions is counted by the market price and converted into suitable currency units in accordance with the exchange rates regulated by the State Bank.

Article 6: Structures and main contents of the settlement balance

1. The current balance is the summing-up of all targets on economic transactions between Residents and Non-residents concerning commodities, services, incomes of labourers, direct investment returns, earnings from investment in valuable papers, interests from loans, interests from overseas deposits, unilateral current transfers, and other transactions suited to Vietnam's existing regulations and laws in-force.

2. The capital and financial balance is the summing-up of all targets on economic transactions between Residents and Non-residents concerning the transfer of capital in and out Vietnam in fields of direct investments, investments in valuable papers, borrowing foreign loans, paying foreign debts, providing loans or claiming foreign debts, unilateral transfer of capital, and other forms of investments and transactions suited to Vietnam's existing regulations and laws in-force and help raise or reduce the assets or liabilities.

3. The general balance is the summing-up of the current balance and the capital and financial balance.

4. The supplement is counted through changes related to net assets in foreign currencies and overdue debts, and assistance sources.

Detailed regulations of the settlement balance are stated in Appendix 1 issued in connection with this Decree.

Article 7: Responsibilities of ministries and branches in the establishment of the settlement balance

1. The Ministry of Planning and Investment Ministry of Finance, Ministry of Trade, General Department of Statistics, General Department of Customs, and other concerned ministries and branches are responsible for providing the State Bank with information, and forecast and real statistics on economic transactions between Residents and Non-residents and other related statistics in accordance with detailed regulations stated in Appendix 2 issued in connection with this Decree.

2. The State Bank is responsible for organising:

a) The definition of detailed contents and areas of collecting information and statistics on the settlement balance for ministries, branches, and credit and economic organisations;

b) The co-ordination with the Ministry of Planning and Investment, Ministry of Finance, Ministry of Trade, General Department of Statistics, and General Department of Customs to periodically establish Vietnam's forecast and real settlement balances; and

3. The State Bank co-ordinates with the General Department of Statistics and concerned ministries and branches to conduct regular and irregular experimental surveys to collect information and

statistics necessary for the establishment of the settlement balance.

Article 8: Terms of making reports and providing statistics

1. Terms of providing the State Bank with information and statistics:

a) Pursuant to Article 7. 1 of this Decree, concerned ministries and branches are responsible for providing the quarterly forecast statistics before or on the fifteenth day of the final month of the previous quarter (according to Appendix 2) and the yearly forecast statistics before or on September 10 of the previous year;

c) Credit organisations and other economic organisations are responsible for providing monthly statistics before or on the twentieth day of the following month; and the quarterly and yearly statistics as regulated in point 1.b of this Article.

2. Terms for the State Bank submitting the settlement balance to the Prime Minister:

a) The State Bank is responsible for submitting the Prime Minister the quarterly forecast settlement balance before or on the twenty-fifth day of the final month of the previous quarter and the yearly forecast settlement balance before or on September 25 of the previous year; and

b) The State Bank is responsible for submitting the Prime Minister the quarterly real settlement balance before or on the final working day of the first month of the following quarter and the yearly real settlement balance before or on February 10 of the following year.

Chapter III

THE OBSERVATIONS AND ANALYSIS OF THE SETTLEMENT BALANCE

Article 9: The State Bank is responsible for:

1. Organising, in co-ordination with the Ministry of Planning and Investment, Ministry of Finance, Ministry of Trade, General Department of Statistics, and General Department of Customs, the observations and analysis of the forecast and real settlement balances; considerations of reasons resulting in the surplus and over-expenditures of the settlement balances; and suggestions of corrective measures to be submitted to the Government.

2. Actively managing currency policies, credit activities. and foreign currency controls; and setting forth measures to manage foreign loans and debt payments of enterprises with the goal of perfecting the settlement balance;

3. Providing concerned ministries and branches with forecast and real settlement balances; and

4. Submitting the Prime Minister forecast and real settlement balances, including the analysis of the settlement balances.

Article 10:

The Ministry of Planning and Investment is responsible for observing and analysing impacts of the settlement balances on macro-economic targets and proposing orientations, policies and measures on economic administrations to be submitted to the Government.

Article 11:

The Ministry of Trade is responsible for observing and analysing impacts of import and export activities on the settlement balances and proposing trade policies and measures aimed at ensuring the balance of the settlement balances.

Article 12:

The Ministry of Finance is responsible for, through the management of fiscal policies, proposing financial policies and measures on State Budget's collections and expenditures in association with foreign loans and debt payments in an aim of ensuring the balance of the capital and financial settlement balances.

Chapter IV

IMPLEMENTATION

Article 13:

The Decree becomes effective as of 15 days after the date of signing.

Article 14:

All violations against contents, regulations, and terms of making reports and providing statistics stated in this decree are subject to administrative punishments in accordance with Vietnam's existing regulations and laws in-force.

Ministers, heads of ministerial level bodies, heads of Governmental bodies, chairpersons of Centrally controlled municipal and provincial People's Committees are responsible for implementing this Decree.

APPENDIX 2

INFORMATION TARGETS AND STATISTICS PROVIDED TO THE STATE BANK

1. Ministry of Planning and Investment:

- Foreign direct investments in Vietnam;

- Vietnamese direct investments abroad;

- Imports and exports of goods and services;

- Foreign loans and debt payments;

- Providing loans and claiming foreign debts;

- Overseas assistance to Vietnam;

- Vietnamese assistance to foreign countries.

2. Ministry of Finance:

- Government's foreign loans and debt payments;

- Government providing loans and claiming foreign debts;

- Vietnamese Government's assistance to foreign countries;

- Foreign governments, and non-governmental and international organisations' assistance to the Government of Vietnam;

- Foreign investors in Vietnam and Vietnamese investors abroad transferring their investment profits home;

- Incomes of Non-residents working in Vietnam;

- Earnings and expenditures of Vietnam's embassies, consulates, representative bodies, and diplomatic delegations abroad;

- Earnings and expenditures from insurance and reinsurance services between Residents and Non-residents; and

- Governmental investments in valuable papers issued by non-residents.

3. Ministry of Trade:

- Imports and exports of goods and services.

4. Ministry of Public Security:

- The number of Non-residents entering Vietnam; and

- The number of Residents exiting Vietnam.

5. Ministry of Foreign Affairs:

- The number of Residents granted visas to exit Vietnam;

- The number of Non-residents granted visas to enter Vietnam;

- Earnings of individuals who are Residents working in embassies, consulates, diplomatic corps and international organisations listed as Non-residents doing business in Vietnam;

- Expenditures on head-office rentals, electricity and water charges and other fees of embassies, consulates, diplomatic delegations, representative bodies, international organisation listed by the Government as Non-residents in Vietnam, an organisations listed as Residents;

- Expenditures for annual fees of the Government, organsations listed by the Government as Residents and organisations listed as Non-residents; and

- Earnings and expenditures of embassies, consulate diplomatic delegations, representative bodies listed by international organisations and the Government as Residents, at organisations and individuals listed as Non-residents abroad;

6. Ministry of Transport (including corporations and companies of the maritime industry):

Shipping and railway and road transportation services between Residents and Non-residents, including:

- Freights;

- Passenger transportation charges;

- Maritime fees;

- Fees for leasing means of transportation; and

- Supplementary services like storing goods, leasing store- houses, loading and discharging of commodities, packaging, tugging boats, navigation, repairs, maintenance of means of transportation, life-savings, opening agencies, supplying and exporting sailors, and testing technical data of machines, equipment and means of transportation.

7. Ministry of Culture and Information:

- Earnings from and expenditures for the use, buying and selling of the copy rights of culture and information articles and services such as movies, pictures, discs, tapes, art, broadcasting, advertising, sports and physical culture activities, newspapers, and magazines ... between Residents and Non-residents.

8. Ministry of Construction:

- Earnings from and expenditures for construction and installation services of less than 12 month projects between Residents and Non-residents.

9. Ministry of Education and Training:

- The number of residents studying abroad, including:

+ The number of students granted scholarships by non-residents;

+ The number of students granted scholarships by residents; and

+ The number of students self paying school fees;

- The number of non-residents studying in Vietnam, including:

+ The number of students granted scholarships by residents;

+ The number of students granted scholarships by non-residents; and

+ The number of students self paying school fees.

10. Ministry of Science, Technology and Environment

- Fees collected from industrial property rights, information technology and information supply services, and technologic transfer and international co-operation projects; expenditure for international co-operation activities; and earnings and expenditures concerning the examinations, observations and evaluations of technologies and environmental effects between Residents and Non-residents.

11. Ministry of Labour, War Invalids and Social Affairs:

- Earnings from and expenditures for labour co-operation activities and exchanges of experts between governments a between organisations listed as residents and govemments organisations listed as non-residents which include salaries wages and other incomes (in cash or kind) of employees; and

- The number of non-residents granted labour licenses Vietnam.

12. Ministry of Industry:

- Exports and imports of power between Residents and Non-residents.

13. Ministry of Health:

- Earnings from and expenditures for health-care services and exchanges of experts between Residents and Non-residents.

14. Other ministries and branches:

- The Ministry of Agriculture and Rural Development, Ministry of Fisheries, Ministry of Defense, Vietnam National Administration of Tourism, and the Committee of Physical Culture and Sports provide information and statistics associated to the Vietnam's international settlement balance upon the request of the State Bank.

15. State Securities Commission:

- Residents' investments in valuable papers issued by Non-residents, and Non-residents' investments in valuable papers issued by Residents.

16. General Department of Statistics:

- Gross National Products;

- Import and export of goods;

- Import and export of services; and

- Other earnings and expenditures associated to the settlement balance.

17. General Department of Customs:

- Import and export of trade goods;

- The quantity of gold and foreign currencies exported and imported into Vietnam; and

- The volume of overseas Vietnamese remittances.

18. Civil Aviation Administration of Vietnam:

Earnings from and expenditures for aviation services

between Residents and Non-residents, including:

- Sales of flight tickets;

- Freights;

- Earnings and expenditures of airport services;

- Earnings and expenditures of operations of the Flight Control Centre;

- Plane rentals;

- Expenditures for having planes repaired and maintained abroad; and

- Fees collected from other services such as transit, use of flight zones, repairs and maintenance of planes, life-savings-opening agencies for the transportation of passengers and goods, and other supplementary services.

19. Post and Telecommunications Corporation, Sai Gon Post and Telecommunications Services Share-holding Company, and Military Share-holding Company

(including all companies of the post and telecommunications industry):

- Post services: delivery of mails, newspapers, magazines, mail items, leasing mail boxes, imports and exports of postal stamps, and remittances;

- Telecommunications services: telephone, fax, telex, telegraph, network installation, Internet, satellite, and other supplementary services;

- Member fees applicable to international organisations; and

- The volume of remittances between Residents and Non-residents.