Decree No. 160/2006/ND-CP: Detailing the Ordinance on Foreign Exchange

This Decree, issued by the Government on December 28, 2006, details the implementation of a number of articles of the Ordinance on Foreign Exchange regarding:

- current transactions and capital transactions,

- use of foreign exchange,

- supply of foreign exchange services,

- foreign currency market and foreign exchange rate,

- management of gold import and export, and,

- state management of foreign exchange.

It applies to organizations and individuals being residents and non-residents engaged in foreign exchange activities in Vietnam as well as organizations and individuals being residents related to the management, inspection, and handling of violations.

Regarding the liberalization of current transactions, the Decree stipulates that in Vietnamese territory all payment and money transfer transactions for current transactions of residents and non-residents are freely made in accordance with this Decree and relevant legal provisions on the following principles:

- Residents and non-residents may purchase, transfer or carry foreign currencies abroad in service of their demands for payment and money transfer for current transactions;

- Residents and non-residents shall present documents according to regulations of credit institutions upon purchase, transfer or carrying of foreign currencies abroad and take responsibility before law for the truthfulness of those documents, but they are not required to present documents certifying the fulfillment of their tax obligations towards the Vietnamese State.

This Decree supersedes Government Decree No. 63/1998/ND-CP of August 17, 1998, Decree No. 05/2001/ND-CP of January 17, 2001, and Decree No. 131/2005/ND-CP of October 28, 2005.

(Source: VietnamLaw)