Principal items of the balance of international payments of Vietnam

According to Decree No. 16/2014/ND-CP of Vietnam’s Government, 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.

Specifically, Decree No. 16/2014/ND-CP stipulates that the balance of payments consists of the following principal items:

- Current account, which covers all transactions between residents and non-residents on goods, services, incomes of employees, incomes from investment and current transfer specified in Article 14, 15, 16 and 17 of this Decree;

- Capital account, which covers all transactions between residents and non-residents on capital transfer specified in Article 18 of this Decree and purchase and sale of non-financial and non-production assets of the governmental sector and private sector;

- Financial account, which covers all transactions between residents and non-residents on direct investment, indirect investment, financial derivative transactions, foreign loan borrowing and repayment, commercial credit, money and deposits specified in Articles 19, 20, 21, 22, 23 and 24 of this Decree;

- Errors and omissions, which means the difference between the total of the current account, capital account and financial account and the general balance of payments;

- General balance of payments, which is determined by a change in the State’s official foreign exchange reserve brought about by transactions in the reporting period.

Note: Residents and non-residents in Vietnam are those defined by the Ordinance No. 28/2005/PL-UBTV on Foreign Exchange and the Ordinance No. 06/2013/UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange.

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

Thu Ba

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