OFFICIAL LETTER

On list of essential import substitutes for purpose of foreign currency
sales to enterprises with foreign owned capital
****

To:     State Bank of Vietnam

1. In order to implement article 33 of the Law on Foreign Investment in Vietnam passed by Legislature IX of the National Assembly on 12 November 1996 and article 72 of Decree 12-CP of the Government providing detailed regulations on the implementation of the Law on Foreign Investment in Vietnam dated 18 February 1997, upon obtaining the recommendations of relevant ministries and the State Bank as stated in Official Letter 908-CV-NHNN7 dated 10 November 1997, the Ministry of Planning and Investment hereby publishes the following list of essential import substitutes which shall be used by banks as a basis to balance foreign currency for enterprises with foreign owned capital in Vietnam:

- Milk and dairy products;

- Flour (produced from wheat);

- Vegetable oil;

- Sugar produced from sugar cane;

- Animal feed (mainly produced from local raw materials);

- Cement;

- Lubricant and grease;

- Bitumen (in a lactescent state used to produce asphaltic concrete);

- Assorted acids: H₃PO₂ acid, HCL acid, glutamic acid, and so forth;

- NaOH;

- Na₂CO₃;

- Chemicals (LABSA, SLS, SLES, and so forth) used to produce soap and detergent;

- Chemicals required for basic construction (surface-active agent, sticking plaster, and so forth);

- Vaccines and medicines for animal and humans;

- Fertilizers (urea, NPK, and so forth);

- Insecticides and herbicides;

- Assorted paints and raw materials used to produce paint;

- PVC grains used to produce plastic products;

- Tyres and tubes used for automobiles, tractors and motorbicycles;

- Natural raw cotton;

- Assorted fibres;

- Assorted kraft paper used as packing paper;

- Assorted cloth, including type cord fabric;

- Garment accessories, such as sewing thread, buttons, zippers, PE sheets, and so forth;

- Assorted architectural glass and industrial glass;

- Neutral glass bottles and one-piece PET bottles;

- Rolled steel (round steel, angle iron, and so forth);

- Metal coated band steel;

- Steel pipes;

- Metal house frames;

- Metal roofing;

Figured aluminium required for basic construction;

- Metal and plastic cans;

- Transformers;

- Electrical equipment used to switch or protect electric circuitry (switchgear, isolating switches, and so forth);

- Distribution boards, control panels for grids;

- Assorted lamps;

- Starter used for fluorescent lamps;

- Assorted cable used for grids, wires used for automobiles;

- Assorted television sets;

- Radio cassettes;

- Assorted television tubes;

- Electronic parts, such as capacitors, deflecting yokes, high-pressure transformers, and so forth;

- Petrol and diesel engines;

- Electricity and water meters;

- Disposable syringes and medical equipment and tools;

- Mechanical tools and industrial moulds of various kinds;

- Forklifts, stacking machines, including lifts and escalators;

- Agricultural machinery;

- Automobiles of various kinds;

- Motorbikes.

2. Enterprises with foreign owned capital shall carry out the purchase of foreign currency in accordance with the specific guidelines provided by the State Bank of Vietnam.

3. This Official Letter shall replace Official Letter 3050-UB-TMDV dated 9 September 1995 and Official Letter 6913-BKH-TMDV dated 26 December 1996 of the Ministry of Planning and Investment. Ministries, branches and localities are requested to report any problems arising during the implementation of this Official Letter to the Ministry of Planning and Investment in order that the Ministry of Planning and Investment may, together with the State Bank, consider and resolve such problems.

4. The Ministry of Planning and Investment shall, on an annual basis, co-ordinate with relevant bodies and branches to review and publish an additional list of essential import substitutes in conformity with the prevailing situation.