Thông báo 552/1999/TB-NHNN7

On 17 August, 198, the Government issued the Decree No. 63/1998/ND-CP on the foreign exchange control, the paragraph 2, Article 1, Chapter 1 of this Decree provides:"in the territory of Vietnam, any foreign exchange activity of organisations, individuals shall be in compliance with the provisions of this Decree and other related provisions of applicable laws. Foreign exchange shall only be circulated through the banking system, organisations and individuals authorised to engage in foreign exchange activities". On 16 April, 1999, the State Bank issued the Circular No.01/1999/TT-NHNN7 providing guidance on the implementation of the Decree No.63/1998/ND-CP of the Government, the paragraph 2, Section II, Chapter I, Part I of the Circular provides in detail: "in the territory of Vietnam, residents, nonresidents being organisations, individuals are strictly prohibited to buy, sell, pay, lend among themselves in foreign currency and to quote prices for goods, services in foreign currency except for cases permitted in this Circular".

Thus, under the provisions of the above-mentioned legal documents, foreign exchange activities in the territory of Vietnam, such as purchase, sale, lending, payment (including the quotation, announcement of prices for goods and services) in foreign currency must be made through the banking system, organisations and individuals permitted under applicable laws. Any other organisations, individuals must make the quotation, announcement of prices for their goods and services in Vietnam Dong as well as only receive payments in Vietnam Dong.

However, the quotation, announcement of prices for goods and services in foreign currency (mainly in American Dollars) in the advertisement pages, advertisement programs in mass media and at business locations by organisations, individuals still occur in the practice. The use of American Dollars for the payment of goods and services still continues at some places, especially in hotels, restaurants and some other locations.

With a view to serious compliance with provisions of the applicable laws on foreign exchange control, attaining to the objective of securing the monetary independence, intergrity under the motto: "to use the Vietnam Dong in the territory of Vietnam ", the State Bank hereby announces:

- Organisations, individuals (except for the banking system, organisations and individuals permitted under applicable laws) must not quote and make payment for goods and services in foreign currency in any form. The quotation and payment of goods, services must be made in Vietnam Dong.

- The State Bank shall cooperate with competent Ministries, Agencies, People Committees in provinces and cities to strengthen the control and deal with violations by organisations, individuals who have quoted prices, made payments for goods and services in foreign currency as well as purchased, sold, lent in foreign currency.

The State Bank hereby gives notice to organisations which and individuals who are engaging in foreign exchange activities in the territory of Vietnam for their knowledge and strict compliance with current provisions on the foreign exchange control of the State.