ON GUIDELINES FOR BILATERAL PAYMENT AND MONEY TRANSFER OPERATIONS BETWEEN VIETNAM AND LAOS

1. This Circular provides for matters related to foreign exchange management for the following operations:

a) Payment and money transfer in the sale and purchase of goods and the provision of services between Vietnam and Laos;

b) Other foreign exchange operations related to bilateral payment and money transfer between Vietnam and Laos.

2. The use of foreign currency accounts (excluding Lao Kip (LAK) accounts) and Vietnamese dong (VND) accounts opened by non-resident Lao organizations and individuals and resident Lao individuals at commercial banks, foreign bank branches permitted to trade or provide foreign exchange services in Vietnam (hereinafter referred to as "authorized banks") shall be carried out in accordance with the legal provisions on the use of foreign currency accounts and Vietnamese dong accounts of residents and non-residents at authorized banks.

3. The carrying of VND cash, LAK cash, and other foreign currencies in cash by individuals upon exiting and entering the country shall adhere to the legal regulations governing the carrying of foreign currency cash and VND cash by individuals upon exit and entry.

4. Payment and money transfer operations for bilateral investment and lending operations between Vietnam and Laos shall comply with the foreign exchange management regulations for inbound investment in Vietnam, outbound investment from Vietnam, foreign borrowing and lending, and foreign lending and debt collection operations.

5. One-way money transfers from Vietnam to Laos and payment and money transfers for other current transactions of resident organizations and individuals shall be conducted in accordance with the legal provisions governing one-way money transfers from Vietnam abroad and payment and money transfers for other current transactions.

6. The opening and use of foreign currency accounts in Laos by resident organizations shall conform to the legal regulations governing the opening and use of foreign currency accounts abroad by resident organizations.

1. Resident organizations and individuals, and non-resident Lao organizations and individuals.

2. Authorized banks.

1. The currency for payment and money transfer in the sale and purchase of goods and the provision of services between Vietnam and Laos shall be VND, LAK, or freely convertible foreign currencies.

2. The payment methods and money transfer for sale and purchase of goods and the provision of services between Vietnam and Laos include:

a) Payment and money transfer through authorized banks;

b) Clearing (payment of the difference in the clearing transaction of exported goods and services with imported goods and services in Vietnam-Laos border trade operations through authorized banks).

1. Resident organizations and individuals and non-resident Lao organizations and individuals are allowed to open and use LAK accounts at authorized banks for purposes related to bilateral payment and money transfer between Vietnam and Laos.

2. The use of LAK accounts (including the transfer of LAK between accounts of the same account holder) as stipulated in Clause 1 of this Article shall be carried out in accordance with the regulations on the use of foreign currency accounts by resident organizations and individuals and non-resident organizations and individuals as stipulated in Articles 3, 4, 5, 6, and Clause 1 of Article 8 of Circular No. 16/2014/TT-NHNN dated August 1, 2014 of the Governor of the State Bank of Vietnam on guidelines for the use of foreign currency accounts, Vietnamese dong accounts of residents and non-residents at authorized banks, and other replacing, amending, and supplementing documents.

Resident organizations are permitted to open and use VND payment accounts at banks in Laos for purposes related to payment and money transfer for current transactions, capital transactions, and transactions permitted in Laos, in compliance with Vietnamese law and relevant Lao law.

1. Authorized banks are allowed to open VND or LAK accounts for Lao banks to facilitate bilateral payment and money transfer operations for organizations and individuals of Vietnam and Laos.

2. The payment method, account management method (including the method of depositing VND cash, LAK cash into the corresponding VND and LAK accounts of Lao banks opened at authorized banks), and other matters shall be implemented in accordance with a written agreement between the authorized bank and the Lao bank on the basis of compliance with Vietnamese law and international treaties to which Vietnam is a member.

1. Authorized banks are permitted to export and import VND cash and LAK cash from Vietnam to Laos and vice versa to balance the amount of cash required for bilateral payment and money transfer operations between Vietnam and Laos by authorized banks, in accordance with Clauses 2 and 3 of this Article.

2. The export and import of VND cash and LAK cash by authorized banks shall be carried out through international border checkpoints, main border checkpoints in the Vietnam-Laos border area, Vietnam-Laos border checkpoint economic zones, and international air border checkpoints.

3. Authorized banks performing the export and import of VND cash and LAK cash shall be responsible for:

a) Declaring to customs authorities at the border checkpoint in accordance with legal regulations;

b) Managing, supervising, and ensuring the safety of receipt, custody, and transportation of VND cash and LAK cash; assuming all risks related to the export and import of VND cash and LAK cash; using imported VND cash and LAK cash for the proper purposes in accordance with legal regulations on foreign exchange management;

c) Complying with this Circular, legal regulations on foreign exchange management, regulations on anti-money laundering, and other relevant legal regulations.

1. Authorized banks shall submit quarterly reports on the export and import of VND cash and LAK cash, no later than the 20th day of the first month following the reporting quarter, in accordance with Article 7 of this Circular (using the form attached to this Circular). The reporting data cut-off period shall be from the 15th day of the month preceding the reporting period to the 14th day of the last month of the reporting quarter. Reports shall be submitted electronically to the email address baocaongoaite@sbv.gov.vn of the State Bank of Vietnam and to the State Bank branch in the province or city where the authorized bank is permitted to carry out the export and import of VND cash and LAK cash.

2. Authorized banks may report the turnover of export and import payments for goods and services with Laos in accordance with the statistical reporting regulations of the State Bank of Vietnam.

1. Responsibilities of State Bank branches in provinces and cities:

a) Provide guidance to relevant organizations and individuals to ensure full compliance with this Circular;

b) Conduct inspections, examinations, and supervision of foreign exchange operations as prescribed in this Circular;

c) Coordinate with relevant agencies and organizations to manage foreign exchange operations within their jurisdiction in accordance with legal regulations.

2. Responsibilities of authorized banks:

a) Fully comply with and guide customers in implementing this Circular;

b) Review, examine, and retain documents and supporting documents in accordance with actual transactions to ensure that foreign exchange services are provided for the proper purposes and in compliance with legal regulations;

c) Adhere to Vietnamese law and international treaties to which Vietnam is a member when entering into payment cooperation agreements with Lao banks.

3. Responsibilities of relevant organizations and individuals:

a) Present documents and supporting documents in accordance with the regulations of authorized banks when conducting foreign exchange transactions and bear legal responsibility for the authenticity of the documents and supporting documents presented to authorized banks;

b) Comply with this Circular and related legal regulations.

1. This Circular comes into force as of July 15, 2024.

2. Annul Decision No. 845/2004/QD-NHNN dated July 8, 2004 of the Governor of the State Bank of Vietnam on the issuance of the Regulations on payment in the purchase and sale, exchange of goods, investment services and aid between Vietnam and Laos.

3. This Circular shall add Clause 2a after Clause 2 of Article 5 of Circular No. 12/2016/TT-NHNN dated June 29, 2016 of the Governor of the State Bank of Vietnam on guidelines for foreign exchange management for outbound investment operations as follows:

“2a. In case an investor has transferred overseas investment capital in foreign currency to a country or territory specified in Clause 2 of Article 4 of this Circular and has the need to transfer capital, profits, and legitimate revenue back to Vietnam in VND, in addition to the opened foreign currency investment capital account, the investor shall be allowed to open and use one (1) VND investment capital account at one (1) authorized credit institution where the foreign currency investment capital account has been opened.

The principles of opening and use of VND investment capital accounts, registration of, registration of changes to foreign exchange transactions related to VND investment capital accounts, and the procedures for registering and registering changes to foreign exchange transactions shall be implemented in accordance with point a and d of Clause 5 of Article 5, Clause 1 of Article 11, and Clause 1 of Article 13 of this Circular.”

The Chief of Office, Director of the Foreign Exchange Management Department, Heads of relevant units of the State Bank of Vietnam, authorized banks, and relevant organizations and individuals shall implement this Circular./.