Vietnam: What are the regulation on foreign exchange activities of prize-winning video games business location under the current law?
- What are the regulation on payments and foreign exchange management?
- What are the regulation on procedures for granting licenses for foreign currency collection and spending and other foreign exchange activities in Vietnam?
- What are the regulation on revoking the license for foreign currency collection and spending and other foreign exchange activities in Vietnam?
What are the regulation on payments and foreign exchange management?
According to Article 17 of Decree 121/2021/ND-CP, the payments and foreign exchange management is mentioned as follows:
- Enterprises may accept Vietnam dong and foreign currencies in cash, bank transfer, and credit cards of players to exchange for tokens when the latter participate in prize-winning video games. Enterprises may carry out the collection and spending of foreign currencies after being licensed by the State Bank of Vietnam under Chapter IV of this Decree.
- Enterprises may collect foreign currencies earned from prize-winning video game business in cash and bank transfer and use these foreign-currency amounts to pay prize money to players when the latter win games and for other foreign-exchange activities after being licensed by the State Bank of Vietnam under Chapter IV of this Decree.
What are the regulation on procedures for granting licenses for foreign currency collection and spending and other foreign exchange activities in Vietnam?
Procedures for granting a license for foreign currency collection and spending and other foreign exchange activities are specified in Article 29 of Decree 121/2021/ND-CP as follows:
- If wishing to conduct foreign currency collection and spending and other foreign exchange activities specified in this Decree, enterprises engaged in prize-winning video game business shall carry out procedures for application for licenses for foreign currency collection and spending and other foreign exchange activities (below referred to as licenses). A dossier must comprise:
+ An application for a license, made according to Form No. 04 provided in Appendix II to this Decree;
+ A copy of the investment registration certificate or enterprise registration certificate;
+ A copy of the written permission for conducting prize-winning video game business, issued by a competent state management agency, or business eligibility certificate in case the investment registration certificate or enterprise registration certificate does not state the prize-winning electronic game business (for enterprises licensed to conduct the prize-winning video game business before the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the prize-winning video game business for foreigners (below referred to as Decree No. 86/2013/ND-CP) takes effect) or business eligibility certificate (for enterprises licensed to conduct prize-winning video game business after Decree No. 86/2013/ND-CP takes effect);
+ Internal regulation on management and control of foreign currency revenues and expenditures, signed by the enterprise’s at-law representative.
-The enterprise shall hand deliver or send by post 1 dossier set to the State Bank of Vietnam.
- Within 45 days after receiving a complete dossier as prescribed, the State Bank of Vietnam shall consider and grant a license, made according to Form No. 05 provided in Appendix II to this Decree. In case of refusal, the State Bank of Vietnam shall issue a written reply clearly stating the reason.
In case the dossier is incomplete or invalid, within 15 days after receiving the dossier, the State Bank of Vietnam shall issue a notice requesting the enterprise to supplement the dossier.
- The validity period of the license must be at most equal to the remaining operation duration stated in the business eligibility certificate or investment registration certificate or enterprise registration certificate stating the prize-winning video game business or the written permission for conducting prize-winning video game business issued by a competent state management agency. In case the enterprise does not have the business eligibility certificate and the investment registration certificate, enterprise registration certificate or written permission for conducting prize-winning video game business issued by a competent state management agency does not specify the operation duration, the validity period of the license must not exceed 10 years, counted from its effective date.
What are the regulation on revoking the license for foreign currency collection and spending and other foreign exchange activities in Vietnam?
According to Article 31 of Decree 121/2021/ND-CP, an enterprise will have its license revoked by the State Bank of Vietnam in the following cases:
- The dossier of application for the license contains untruthful information which makes it eligible for grant of a license.
- Past 12 months after being granted a license, the enterprise still fails to conduct foreign-currency collection or spending or other foreign exchange activities, except cases of natural disasters, fires, epidemics or other objective causes.
- It is dissolved or falls bankrupt in accordance with law;
- It has its investment registration certificate, enterprise registration certificate or business eligibility certificate revoked by a competent state agency.
- It is sanctioned for administrative violations for 3 times or more for administrative violations in foreign exchange management.
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