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The Decree applies to the State Bank of Viet Nam ("SBV"), credit institutions, foreign banks' branches and organisations and individuals making payments in cash.

For the purpose of this decree "payments in cash" refers to organisations and individuals using cash to make direct payments or implement other payment obligations. Payments in cash in certain transactions are regulated as follows:

1. Payments by State organisations: Organisations using the State budget or capital must not make cash payments except for transactions that the Ministry of Finance ("MoF") or SBV specifically allows cash payments to be made.

Organisations using State budget are those that make budget estimates, those supported by the State budget, and investors or project management boards with projects financed by the State budget.

Organisations using State capital are those funded by credit that has been guaranteed by the State, capital loaned by credit institutions for investment in national development and other State investment capital.

2. Securities transactions: Organisations and individuals must not make payments in cash for securities transactions on the Stock Exchange. They should not make payments in cash for securities transactions registered and deposited at the Securities Depository and not conducted via the transaction system of the Stock Exchange.

3. Enterprises' financial transactions: Enterprises must not make payments in cash in transactions of capital contribution and share sale, purchase and transfer to other enterprises. Enterprises that are not credit institutions must not use cash to borrow or lend to each other.

4. Providing cash loans: Credit institutions and foreign banks' branches can provide loan in cash to clients in accordance with SBV regulations.

5. Agreement and registration of cash demands: Credit institutions and foreign banks' branches can reach agreement with the clients about plans for withdrawals of money in cash after prior notification from the clients in case the withdrawal involves large amounts. Units transacting with the State Treasury needing to withdraw money in cash must register them in accordance with MoF regulations.

6. Cash services fees: SBV fixes the cash services fees to be paid by its clients. Credit institutions and foreign banks' branches fix the cash services fee to be paid by their clients and list it publicly in accordance with regulations. Cash services mean payments, withdrawals and other cash-related services.

This Decree takes effect on 1 March 2014 and replaces the Government Decree No.161/2006/ND-CP (28 December 2006). — MAI COUNSEL