Notable new policies of Vietnam effective from the end of September 2024

1. Vietnam to annul Circular on regulations on management and use of state budget funding for prevention and combat against domestic violence 

On August 6, 2024, the Minister of Finance promulgated Circular No. 58/2024/TT-BTC on annulling Joint Circular No. 143/2011/TTLT-BTC-BVHTTDL on regulations on the management and use of state budget funding for the prevention and combat against domestic violence; state budget funding for support for facilities supporting domestic violence victims and non-public facilities providing counseling on the prevention and combat against domestic violence.

According to the Circular, Joint Circular No. 143/2011/TTLT-BTC-BVHTTDL of the Minister of Finance of Vietnam and the Minister of Culture, Sports and Tourism of Vietnam on regulations on the management and use of state budget funding for the prevention and combat against domestic violence; state budget funding for support for facilities supporting domestic violence victims and non-public facilities providing counseling on the prevention and combat against domestic violence is wholly annulled. 

See more details in Circular No. 58/2024/TT-BTC, effective as of September 25, 2024. 

2. Vietnam’s guidelines on trading of foreign currencies between official foreign exchange reserves and state budget from September 23, 2024 

This is a content of Circular No. 43/2024/TT-NHNN dated August 9, 2024 on amendments to Circular No. 01/2014/TT-NHNN on guidelines on the management of state foreign currency reserves promulgated by the Governor of the State Bank of Vietnam.

Circular No. 43/2024/TT-NHNN amends Article 9 of Circular No. 01/2014/TT-NHNN on the trading of foreign currencies between official foreign exchange reserves and the state budget as follows:

- Regarding the purchase of foreign currencies from the state budget: 

The State Foreign Exchange Reserve Management Department shall, based on the annual plan to sell foreign currencies of the state budget and the written request for foreign currency sale of the Ministry of Finance of Vietnam and/or written directives of the Prime Minister of Vietnam, purchase foreign currencies for additions to the state foreign exchange reserve from the state budget with the rate prescribed in Clause 3 Article 9 of Circular No. 01/2014/TT-NHNN (amended by Circular No. 43/2024/TT-NHNN).

- Regarding the sale of foreign currencies to the state budget: 

+ The State Foreign Exchange Reserve Management Department shall, based on the written request for foreign currency purchase of the Ministry of Finance of Vietnam to meet the foreign currency demands for the state budget, cooperate with the Monetary Policy Department in developing a scheme to balance the sale of foreign currencies to the state budget, presenting it to the Governor for approval, and notifying the Ministry of Finance of Vietnam of such scheme; 

+ The State Foreign Exchange Reserve Management Department shall, based on the scheme to balance the sale of foreign currency approved by the Governor, sell foreign currencies to the state budget following the rate prescribed in Clause 3 Article 9 of Circular No. 01/2014/TT-NHNN (amended by Circular No. 43/2024/TT-NHNN).

- Trading rate of foreign currencies of the State Bank of Vietnam:

+ In the case of trading US dollars, the trading rate shall be equal to the spot exchange rate in the interference scheme. If there is no interference scheme at the time of implementation or the interference scheme does not specify the spot exchange rate, apply the foreign currency trading rate equal to the official rate announced by the State Bank of Vietnam to the trading date; 

+ In the case of trading foreign currencies other than US dollars, the foreign currency trading rate shall be applied based on the cross-calculated exchange rate of the exchange rate prescribed in Point a Clause 3 Article 9 of Circular No. 01/2014/TT-NHNN (amended by Circular No. 43/2024/TT-NHNN) and the average exchange rate of the purchase and sale prices between the foreign currencies subject to trading and US dollars listed on the international foreign exchange market through the Refinitiv or Bloomberg information network system before 10 a.m. of the transaction date. 

See more details in Circular No. 43/2024/TT-NHNN, effective as of September 23, 2024. 

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