Opening and using direct investment accounts in Vietnam

Opening and using direct investment accounts in Vietnam

Legal basis:

Law on Investment No.61/2020/QH14 dated June 17th 2020;
Law on the State bank of Vietnam No. 46/2010/QH12 dated june 16th 2010;
Circular No.06/2019/TT-NHNN of the State bank of Vietnam, dated June 26th 2019 guilding the foreign exchange management for the foreign direct investment in Vietnam.

Entities opening and using direct investment accounts in Vietnam

Any enterprise established in the form of investment of establishing a business organization whose members or shareholders are foreign investors and granted the investment registration certificate in accordance with law on investment.
Any enterprises other than those prescribed above and at least 51% of charter capital of which is owned by foreign investors as follows:
Any enterprises (operating in conditional business lines or without conditions applicable to foreign investors) at least 51% of charter capital of which is held by foreign investors through contribution purchase of shares/stakes;
The enterprise is established after a split, merger or consolidation resulting in foreign investors owning 51% or more of the enterprise’s charter capital;
New enterprises established in accordance with relevant laws;
Project enterprises established by foreign investors to implement PPP projects in accordance with law on investment.
Foreign investors participate in BCC or directly implement PPP projects without establishing project enterprises

Regulations on opening and using direct investment capital accounts

Entities opening and using direct investment capital accounts according to the following regulations:

+ Open a foreign currency account at one (01) authorized bank in order to receive and make payments in that currency during the process of foreign direct investment in Vietnam;

+ Corresponding to the foreign currency in which investment capital is contributed, only 01 (one) direct investment capital account in that foreign currency can be opened at 01 (one) licensed bank;

+ In case of investing in Vietnamese dong, the investor open one (01) direct investment account in Vietnamese dong at the authorized bank where the direct investment account in foreign currency is opened in order to receive and make payment in VND during the process of foreign direct investment in Vietnam;

+ In case the foreign investor participates in several BCCs or directly implements several PPP projects, such foreign investor shall open a direct investment account for each BCC or PPP project.

If the currency of an overseas loan is different from the currency of the FDI enterprise’s direct investment account, it may open other direct investment accounts of the loan currency at authorized banks where they have already held direct investment accounts in order to perform their receipt and expenditure transactions regarding foreign loans in accordance with regulations of law on overseas loan receipt and repayment of enterprises;
In case of changing the authorized bank where the direct investment capital account is opened, the entities opening and using the direct investment capital account must carry out the following procedures:

+ Open another direct investment account at another authorized bank;

+ Transfer all the balance from old direct investment accounts into the new ones and close the former;

+ Direct investment capital accounts at other authorized banks can only be used to perform revenue and expenditure transactions after completing the above steps.

Regulations on capital contribution through direct investment capital account

Foreign and Vietnamese investors are allowed to contribute capital in foreign currencies and Vietnamese dong according to registered amount in the investment registration certificate, notice of the foreign investor’s eligibility to contribute capital or purchase shares/stakes, license of establishment and operation in accordance with specialized law, signing of PPP contracts with competent authorities and other documents which can prove the compliance with law of capital contribution of foreign investors.
Residents that are Vietnamese investors are allowed to contribute capital with their own sources of personal foreign currency.
The monetary capital contribution by foreign or Vietnamese investors must be transferred to the direct investment account.

Reference

Website of the State Bank of Vietnam:https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu?_afrLoop=48466631108243466#%40%3F_afrLoop%3D48466631108243466%26centerWidth%3D80%2525%26leftWidth%3D10%2525%26rightWidth%3D10%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%26_adf.ctrl-state%3D59f9ak7xh_4