The introductions for managing the foreign exchange in the offshore petroleum investment

The introductions for managing the foreign exchange in the offshore petroleum investment - 

The State Bank has issued the Circular No 312/2018/TT-NHNN on introductions for managing the foreign exchange in the offshore petroleum investment.

In accordance with the Circular, the currencies used for the offshore petroleum investment are:

1/ The foreign currency on the account at an authorized credit institution or purchased at an authorized credit institution or foreign currency from other legal capital sources in accordance with law.

2/Vietnam dong in the cases of transferring investment capital to a country or territory receiving investment if Vietnam and this country or territory have signed the bilateral or multilateral agreement on the permission to use Vietnam dong in money payment and transfer transactions.

Investors may transfer foreign currencies abroad to conduct market research, seek opportunities and prepare investment before being granted offshore investment registration certificates in petroleum activities according to the provisions of Clause 1, Clause 4 of Article 5 of Decree 124/2017 / ND-CP.

After being granted an offshore investment registration certificate, the investor must open one investment capital account with one foreign currency in accordance with the need to transfer investment capital abroad in petroleum activities at an allowed credit institution.

The investor with many foreign investment projects must open separate investment account for each project.

The Circular also stipulates that investor is responsible for transferring profits, legal income and investment capital back to Vietnam after liquidating, terminating, reducing investment capital and transferring investment projects through the investment capital account of the investor.

In the case of terminating the offshore investment projects according to the regulations in Point of Clause 1 of Article 62 of the Investment Law, before terminating the projects and the transferring all the foreign investment capital to the foreign investor, the investor must notify the State Bank branches in province or city where the investor registers for foreign exchange transactions related to the offshore petroleum investment.

This Circular takes effect from February 1, 2019.

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