Press Release on issuance of Circular No.03/2019/TT-NHNN
Hanoi, March 29, 2019 – The Governor of the State Bank of Vietnam (SBV) issued Circular No. 03/2019/TT-NHNN amending and supplementing a number of articles of Circular No.32/2013/TT-NHNN dated December 26, 2013 providing guidance on the restrictions of the use of foreign exchange in the territory of Vietnam.
The issuance of Circular No. 03/2019/TT-NHNN is aimed at implementing the Prime Minister’s instructions on strengthening the restructuring, rearrangement, renovation, equitization and divestment at the state-owned enterprises. Accordingly, Circular No. 03/2019/TT-NHNN amends and supplements Article 4 of Circular No.32/2013/TT-NHNN in the direction of allowing foreign investors as non-residents to deposit and pay securities by transferring foreign currencies when participating in bidding in the following cases:
(i) Purchasing shares at a state-owned enterprise, which is equitized as approved by the Prime Minister;
(ii) Purchasing shares, contributed capital of the State at a state-owned enterprise, which is conducting divestment as approved by the Prime Minister;
(iii) Purchasing shares, contributed capital of a state-owned enterprise investing in another enterprise which is conducting divestment as approved by the Prime Minister.
In case of winning the bid, the foreign investors are required to transfer the investment capital in line with the regulations on forex management to pay for the purchase of the shares and contributed capital. In case of not winning the bid, the foreign investors are allowed to transfer the amount of the foreign currencies used for deposit and security payment to overseas after deducting the relevant arising costs.
Translated by Le Hang