New economic policies take effect from August 2023

Some policies related to the economic sector such as Regulations on currency exchange agent activities of countries sharing borders; Increasing driving license testing fees; Amending regulations on importing goods for printing and minting money; Regulations on conditions for foreign loans not guaranteed by the Government; Amending regulations for founding shareholders of non-bank credit institutions... will take effect from August 2023.

Regulations on currency exchange activities of bordering countries

The State Bank of Vietnam issued Circular 04/2023/TT-NHNN dated June 16, 2023 regulating the activities of currency exchange agents in bordering countries.

The Circular clearly stipulates the activities of currency exchange agents of bordering countries. Accordingly, currency exchange agents of bordering countries are only allowed to operate in the form of using Vietnamese Dong to buy currency of bordering countries from individuals in cash, except for the cases specified in Clause 2 of this Article.

Currency exchange agents of bordering countries located in the exit waiting areas at international border gates and main border gates are allowed to sell currency of bordering countries in cash for Vietnamese Dong to individuals according to regulations.

An economic organization may agree with an authorized credit institution in a currency exchange agency contract of a bordering country to place a currency exchange agency of a bordering country at one or more locations in the land border area or border gate economic zone in the area where the economic organization has its head office or branch.

Currency exchange agents of bordering countries located in the exit waiting areas at international border gates and main border gates are allowed to sell currency of bordering countries in cash to foreign individuals who have completed exit procedures.

In case of selling currency of a bordering country with a value equivalent to VND 20,000,000 (Twenty million Vietnamese Dong) or less, the currency exchange agent of the bordering country shall require the individual to present exit documents in accordance with the provisions of law on exit of foreigners.

In case of reselling currency of a bordering country with a value equivalent to over VND 20,000,000 (Twenty million Vietnamese Dong) to an individual who has exchanged currency of a bordering country, the currency exchange agent of the bordering country shall request the individual to present exit documents in accordance with the provisions of law on exit of foreigners, and the invoice (receipt) of the currency exchange stamped by a licensed credit institution or the currency exchange agent of the bordering country. The invoice (receipt) of the currency exchange is only valid for the individual to use to repurchase currency of the bordering country within 90 days from the date stated on the invoice (receipt). The currency exchange agent of the bordering country must collect the invoice (receipt) of the individual's previous currency exchange.

The maximum amount of currency of a bordering country that an individual can buy back must not exceed the amount of money exchanged stated on the invoice (receipt).

This Circular takes effect from August 1, 2023.

Increase driving license test fees

From August 1, 2023, driving test fees will be applied according to new regulations in Circular No. 37/2023/TT-BTC dated June 7, 2023 of the Ministry of Finance stipulating the collection rates, collection, payment, management and use of driving test fees; fees for granting licenses and certificates to operate on various types of vehicles and fees for registration and issuance of license plates for specialized motorbikes.

Circular No. 37/2023/TT-BTC has adjusted the driving test fee higher than current regulations.

Accordingly, the driving test fee for driving tests for classes A1, A2, A3, A4 includes: Theoretical test is 60,000 VND/time, an increase of 20,000 VND compared to the old level of 40,000 VND/time; practical test is 70,000 VND/time, an increase of 20,000 VND compared to the old level of 50,000 VND/time.

For the driving test for cars of class B1, B2, C, D, E, F, the theoretical test fee is 100,000 VND/time, an increase of 10,000 VND compared to the old level of 90,000 VND/time; the practical test in pictures is 350,000 VND/time, an increase of 50,000 VND compared to the old level of 300,000 VND/time; the practical test on the road is 80,000 VND/time, an increase of 20,000 VND compared to the old level of 60,000 VND/time; the driving test using software simulating traffic situations is 100,000 VND/time.

According to Circular No. 37/2023/TT-BTC, the organizations collecting fees and charges are the Vietnam Road Administration and road management agencies of provinces and centrally run cities.

Circular No. 37/2023/TT-BTC takes effect from August 1, 2023, replacing Circular No. 188/2016/TT-BTC dated November 8, 2016 of the Minister of Finance stipulating the collection rates, collection, payment, management and use of driving test fees; fees for granting licenses and certificates of operation on vehicles and fees for registration and issuance of license plates for specialized motorbikes.

Amending regulations for founding shareholders of non-bank credit institutions

The State Bank issued Circular 05/2023/TT-NHNN dated June 22, 2023 amending and supplementing a number of articles of Circular No. 30/2015/TT-NHNN dated December 25, 2015 regulating the granting of licenses, organization and operation of non-bank credit institutions.

Circular amending and supplementing Article 11 stipulates for founding shareholders of non-bank credit institutions:

1. Not a strategic shareholder, founding shareholder, owner, or founding member of another credit institution established and operating in Vietnam.

2. It is not allowed to use mobilized capital or borrowed capital from other organizations or individuals to contribute capital.

3. In addition to the provisions in Clause 1 and Clause 2, founding shareholders who are individuals must comply with the following provisions: a) Be of Vietnamese nationality; not be subject to the prohibition of establishing enterprises according to the provisions of the Law on Enterprises and the Law on Cadres and Civil Servants.

4. In addition to the provisions in Clause 1 and Clause 2 of this Article, founding shareholders that are organizations must comply with the following provisions:

a) Established under Vietnamese law;

b) Profitable business in 03 consecutive fiscal years before the year of submitting the application for a License and up to the time of submitting additional documents for consideration for a License;

c) Fully perform tax and social insurance obligations as prescribed by law up to the time of submitting the application for a License;

d) For organizations that are Vietnamese enterprises (except Vietnamese commercial banks):

- Have a minimum equity capital of VND 500 billion, total assets of VND 1,000 billion in the 3 consecutive fiscal years before the year of submitting the application for a License. In case the enterprise operates in a business line that requires a legal capital level, it must ensure that the equity capital according to the audited financial report of the year immediately before the time of submitting the application for a License minus the minimum legal capital is equal to the committed capital contribution;

- In case an enterprise is granted a License to establish and operate in the field of securities and insurance, it must comply with capital contribution according to relevant legal provisions;

d) For Vietnamese commercial banks:

- Have total assets of at least VND 100,000 billion, fully comply with regulations on risk management and full provisioning as prescribed at the time of submitting the application for a License and at the time of submitting additional documents for consideration for a License;

- Not violating the limits and safety ratios in operations as prescribed by the State Bank in the year immediately preceding the year of submitting the application for a License and up to the time of submitting additional documents for consideration for a License;

- Ensure minimum capital safety ratio after contributing capital to establish a non-bank credit institution;

- Not being administratively sanctioned for violations in the field of currency and banking activities in the 2 consecutive years before the year of submitting the application for a License and up to the time of submitting the application for a License.

The Circular takes effect from August 6, 2023.

Amending regulations on importing goods for printing and minting money

The State Bank of Vietnam issued Circular 07/2023/TT-NHNN dated June 30, 2023 amending and supplementing a number of articles of Circular 38/2018/TT-NHNN regulating the import of goods for printing and minting activities of the State Bank of Vietnam.

Circular amending and supplementing Article 4 regulating the basis and procedures for importing goods serving money printing and minting activities.

Based on the document designating and permitting the printing and minting establishments to import goods for printing and minting activities as prescribed in Clause 2, Article 3 of this Circular, the printing and minting establishments shall import goods for printing and minting activities as prescribed in the Appendix to the List of goods designated for printing and minting establishments to import for printing and minting activities issued by the State Bank of Vietnam together with this Circular as follows:

For goods that are metal ingots used for casting and stamping metal money; money printing paper; money printing ink; anti-counterfeit foil used for money, payment checks and other types of stamps and valuable papers issued and managed by the banking sector: Money printing and minting establishments shall, based on the money printing and minting contract between the money printing and minting establishment and the State Bank, carry out the import of goods;

For goods being anti-counterfeit foil presses; money printing machines; metal coin casting and stamping machines: Money printing and minting establishments shall, based on the investment policy approval document and investment decision of the competent authority as prescribed in Article 4 of Circular No. 07/2020/TT-NHNN dated June 30, 2020 of the Governor of the State Bank of Vietnam regulating the investment and procurement of goods serving the printing and minting activities of the State Bank of Vietnam, import goods.

The Governor of the State Bank authorizes the Director of the Issuance and Treasury Department to issue a document confirming that the printing and minting establishment imports goods to serve the printing and minting activities of the State Bank according to the goods purchase and sale contract or other forms of documents between the printing and minting establishment and the goods supplier.

When carrying out import procedures, the printing and minting facility shall send the Customs Authority 01 original copy of the confirmation document of the State Bank together with the customs dossier as prescribed by law.

Replace the Appendix issued with Circular No. 38/2018/TT-NHNN with the Appendix on the List of goods designated for printing and minting establishments imported to serve the printing and minting activities of the State Bank of Vietnam issued with this Circular.

Circular 07/2023/TT-NHNN takes effect from August 14, 2023.

Regulations on foreign loan conditions not guaranteed by the Government

The State Bank issued Circular 08/2023/TT-NHNN dated June 30, 2023 regulating conditions for foreign loans not guaranteed by the Government.

The Circular clearly states that the subjects subject to the provisions on foreign loan conditions not guaranteed by the Government include: Residents who are enterprises, cooperatives, cooperative unions, credit institutions and foreign bank branches established and operating in Vietnam are foreign borrowers (borrowers); credit institutions and foreign bank branches in Vietnam where the borrower opens a foreign loan and debt repayment account (banks providing account services).

Borrowers borrowing from abroad in the form of issuing international bonds, in addition to meeting the conditions for borrowing from abroad without government guarantees, must comply with the provisions of law on offering corporate bonds to the international market and other relevant provisions of law.

The borrower is a state-owned enterprise, in addition to meeting the loan conditions, must comply with the provisions of law on management and use of state capital invested in production and business at the enterprise and other relevant provisions of law.

The Circular takes effect from August 15, 2023.

Strive for domestic revenue estimate in 2024 to increase by 5 - 7%

The Ministry of Finance has just issued Circular No. 51/2023/TT-BTC dated July 17, 2023 guiding the development of the state budget estimate for 2024 and the 3-year state budget-finance plan for 2024 - 2026. Accordingly, the domestic revenue estimate for 2024 is expected to increase by 5 - 7% compared to the estimated implementation in 2023.

According to the Circular, the development of the 2024 revenue estimate must closely follow the domestic and foreign socio-economic and financial situation, specifically calculating the factors of increase, decrease and shift in revenue sources due to changes in legal policies on revenue and revenue management, especially policies on tax, fee and charge exemption and reduction and extension of tax and land rent payment deadlines that expire in 2023, and the implementation of the roadmap for tax reduction and incentives to fulfill the Government's commitments in the process of international economic integration with foreign investors.

Strive to estimate domestic revenue in 2024, excluding land use fees, lottery revenue, money from selling state capital at enterprises, dividends, after-tax profits and the difference between revenue and expenditure of the State Bank nationwide to increase by about 5-7% compared to the estimated implementation in 2023 (excluding factors of revenue increase or decrease due to policy changes); the revenue growth rate in each locality is consistent with economic growth and revenue sources arising in each locality, taking into account factors of strengthening revenue management, preventing revenue loss and recovering tax debts.

Strive for the estimated revenue from import-export activities in 2024 to increase by an average of about 4-6% compared to the estimated performance in 2023.

Regarding the development of the non-refundable aid revenue estimate, the Circular clearly states that the development of the 2024 state budget revenue estimate for foreign non-refundable aid sources must be based on and closely follow the implementation of the 2023 state budget estimate (assigned budget amount, capital received from donors, implemented capital); documents of the Program, project, non-project or aid approved by competent authorities in Vietnam; documents on aid commitments, aid letters or documents on aid intentions of donors; actual implementation progress, the possibility of new arising and implementation during the year, limiting the situation of lack of estimates leading to having to submit to competent authorities for supplementation or not fully implementing, leading to having to cancel the estimate or transfer sources.

For aid received from 2023 that is not included in the assigned budget, ministries, central and local agencies shall prepare and summarize it in the 2024 budget to submit to competent authorities for consideration and decision, as a basis for accounting and final settlement according to regulations.

This Circular takes effect from August 31, 2023.

According to VNA