06 principles of formulation of the balance of payments of Vietnam from April 21, 2014

Currently, balance of international payments of Vietnam (below referred to as balance of payments) means general statistical report on transactions between residents and non-residents over a given period.

Principles of formulation of the balance of payments of Vietnam are specified in Decree No. 16/2014/ND-CP as follows:

- The balance of payments is formulated in conformity with international practices of making balance of payments statistics and practical conditions of Vietnam.

- The currency unit used for formulation of the balance of payments is the U.S. dollar (USD).

- The exchange rate for conversion of Vietnam dong (VND) into USD is the average inter-bank exchange rate announced by the State Bank at the end of a reporting period.

- The conversion of foreign currencies other than USD into USD is as follows:

+ Converting a foreign currency into VND at the cross rate between VND and such foreign currency announced by the State Bank for calculation of import duty and export duty applicable in the reporting period;

+ After the conversion of a foreign currency into VND, the conversion into USD is conducted at the exchange rate specified above.

- The time of making statistics on transactions is the time of ownership transfer between residents and non-residents.

- The value of a transaction is determined on the market principle at the time of transaction.

View more details at Decree No. 16/2014/ND-CP of Vietnam’s Government, effective from April 21, 2014.

Thu Ba

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