VietNamNet Bridge – Foreign-exchange activities by residents and non-residents have been guided under Government Decree No70/2014/ND-CP (July 17, 2014). The Decree applies to organisations and individuals undertaking foreign-exchange activities in Viet Nam and controls the inspection of and dealing with breaches of foreign exchange activities.

In Viet Nam, all payment and remittance money relating to current transactions of residents and non-residents is conducted freely. Residents and non-residents are permitted to purchase, remit and carry foreign currency overseas.— Photo vietstock.vn

Remittances and currency transactions

In Viet Nam, all payment and remittance money relating to current transactions of residents and non-residents is conducted freely. Residents and non-residents are permitted to purchase, remit and carry foreign currency overseas. They are responsible for presenting supporting documents, but are not required to present certificates of tax completion to the State of Viet Nam when they purchase, remit or carry foreign currency overseas.

Imports, exports of goods and services

Residents having foreign currency revenue from the export of goods and services or from other current revenue sources overseas must remit the foreign currency amount into a foreign currency account opened at the authorised credit institution in Viet Nam. All payments and remittances relating to the import and export of goods and services must be conducted via remittances at the authorised credit institution.

One-way remittance from overseas or vice versa

1. From overseas into Viet Nam. Foreign currency of resident organisations having one-way remittance is placed in the foreign currency account at, or must be sold to, the authorised credit institution. Foreign currency of resident individuals having one-way remittance is deposited in a foreign currency account or withdrawn in cash to use in permitted cases.

2. From Viet Nam to overseas. Resident organisations are permitted to conduct one-way remittances overseas to provide financial support or aid or other purpose specified by the State Bank of Viet Nam (SBV). If the residents are Vietnamese citizens, they are permitted to buy, transfer and carry foreign currency overseas for study or have medical treatment overseas, work, tour, etc.

Non-residents and residents being foreigners having foreign currency in their accounts or other lawful foreign currency revenue sources are permitted to remit or carry foreign currency overseas. If they have lawful revenue resources in Vietnamese dong, they are permitted to purchase foreign currency to remit or carry it overseas.

Foreign direct investment capital

Residents being foreign invested enterprises (FIE) and foreign investors participating in business co-operation contracts (BCC) must open a direct investment capital foreign currency account at the authorised credit institution to implement revenue and disburse transactions. If the investment is implemented in dong, then FIEs or BCC foreign investors must open a direct investment capital dong account at the authorised credit institution where FIEs or BCC foreign investors have already opened a direct investment capital foreign currency account.

Foreign investors remitting lawful income in dong from direct investment activities in Viet Nam can purchase foreign currency and remit it overseas within 30 business days after the date of purchase of foreign currency.

Issuing securities overseas or in Viet Nam

Resident organisations are permitted to issue foreign currency securities overseas in the form of bonds. If the residents issue foreign currency securities overseas in the form of shares, investment fund certificates or other types of securities, they must open the foreign currency account at the authorised credit institution.

Non-residents being organisations are permitted to issue securities in dong in Viet Nam. They must open one dong account to conduct revenue and disbursement transactions in dong relating to the issuance of the securities.

Offshore foreign currency accounts

Resident organisations can open and use offshore foreign currency accounts when (1) economic entities have branches or representative offices overseas or need to open the offshore foreign currency account to receive loan capital - or to perform agreements with foreign parties; or (2) Vietnamese agencies operating in Viet Nam need to open the offshore foreign currency account to receive foreign financial support or aid or in cases permitted by Vietnamese competent authority.

Foreign currency cash by individuals

Residents and non-resident individuals having foreign currency cash are permitted to store or carry it personally, donate it or receive inheritances, sell it to an authorised credit institution, remit or carry it overseas, and to pay it to entities permitted to collect foreign currency cash. Residents being Vietnamese citizens are permitted to use foreign currency cash to deposit in savings accounts at authorised credit institutions, and to withdraw the principal and interest in the currency deposited.

The Decree takes effect on September 5, 2014, and replaces Government Decree No160/2006/ND-CP (28 December 2006).

MAI COUNSEL

Source: VNS