Currently, the opening and use of indirect investment capital accounts for transactions relating to foreign indirect investment activities in Vietnam is stipulated in the Circular 05/2014/TT-NHNN (“Circular 05/2014”) guiding the opening and use of indirect investment capital accounts to carry out foreign indirect investment activities in Vietnam.
Accordingly, foreign investors who are non-residents including foreign organizations and individuals conducting indirect investment activities in Vietnam must open an indirect investment account.
All indirect investment activities of foreign investors in Vietnam must be conducted in Vietnam Dong. Foreign investors must open an indirect investment account in Vietnam when performing indirect investment activities in accordance with the following forms:
- Capital contribution, transfer of stakes in Vietnamese enterprises lead to shared ownership / capital contribution of less than 51% of the charter capital of the enterprise (According to the Article 5 of the Circular 05/2014 and Circular 06/2019/TT-NHNN).
- Capital contribution, purchase of shares or stakes from Vietnamese enterprises which have been listed or registered for transactions on stock exchanges.
- Sales and purchase of bonds and other types of stocks on the securities market of Vietnam.
- Sale and purchase of other valuable papers in Vietnam Dong which are permitted to issue within the territory of Vietnam by Vietnam-domiciled organizations.
- Investment trust in Vietnam Dong through fund management companies, securities companies and organizations are permitted to conduct the investment trust operation under legal provisions on securities. Investment trust in Vietnam Dong through credit institutions and branches of foreign banks is allowed to conduct investment trust operation under the provisions of the State Bank.
- Capital contribution, transfer of contributed capitals of foreign investors in securities investment funds and fund management enterprises according to legal provisions on securities.
- Other indirect investment forms according to legal provisions.
Transfer of capital, profits and legal revenues to foreign countries
In case of demand for remittance of capitals, interests and other lawful incomes from indirect investment activities to overseas countries, foreign investors may use Vietnam Dong in the capital account of indirect investment to buy foreign currency at licensed credit institutions and remit it to overseas countries.
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