The State Bank of Vietnam has recently promulgated the Circular No. 06/2019/TT-NHNN guiding foreign exchange management for foreign direct investment in Vietnam, and this Circular takes effect on September 6th, 2019.
Accordingly, this Circular provides instructions on foreign exchange management for foreign direct investment (FDI) in Vietnam, including: capital contribution; opening and use of direct investment accounts in foreign currency and Vietnamese Dong; transfer of money for investment activities; transfer of capital, profits and revenues abroad; transfer of investments capital and projects.
Those who can open and use a DICA are FDI enterprises which foreign investors invest in/or purchase capital contribution or shares, including:
- Foreign-invested enterprises established by setting up economic organizations having Investment Registration Certificates under the Investment Law of Vietnam.
- Enterprises to which foreign investors contribute capital or buy shares from, leading to foreign ownership of 51% of the charter capital or more.
- Enterprises established after being split or merged, leading to foreign ownership rate from 51% of the charter capital or more.
- Newly established enterprises in accordance with specialized laws.
Foreign-invested enterprises must open foreign direct investment capital accounts (in foreign currencies or Vietnam dong) at licensed banks to conduct transactions related to foreign direct investment activities into Vietnam.
Foreign are allowed to contribute capital in foreign currencies or Vietnamese dong according to the registered amount of contribution shown on the Investment Registration Certificate, Establishment License or Notice of the foreign investor’s ability to contribute capital or purchase shares/stakes and other documents proving capital contribution of foreign investors complying with the law.
Money for capital contribution by foreign investors must be transferred to the direct investment account.
Transfer of capital, profits and revenues abroad.
They must be transferred abroad through direct investment accounts, specifically:
- Reduction of investment capital; transfer of investment projects, termination or liquidation of investment projects, BCC and PPP contracts according to the investment law;
- Principal, interest and costs of overseas loan, profits and lawful revenues related to direct investment in Vietnam.
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