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REGULATIONS ON FOREIGN EXCHANGE MANAGEMEMT
For investment projects from Vietnam to other countries that need to use foreign currency, according to Vietnamese regulations, this use will be managed according to the principles of the State Bank. So what are the things you need to know about foreign exchange management ? Find out in the article below.
- Which subjects is subject to foreign exchange management?
According to Article 2 of Circular 06/VBHN-NHNN, entities controlled in the use of foreign exchange include:
- Economic organizations established and operating under the Enterprise Law;
- Cooperatives and unions of cooperatives are established and operate according to the provisions of the Law on Cooperatives;
- Credit institutions are established and operate under the Law on Credit Institutions;
- Business households as prescribed by law, individuals with Vietnamese nationality;
- Other organizations carry out business investment in accordance with Vietnamese law.
- Other organizations and individuals related to overseas investment activities .
- What is the currency used to transfer investment capital abroad?
There are 2 currencies that Vietnamese investors can use to transfer investment capital abroad: Foreign currency and Vietnam Dong (in case of transferring investment capital to the country or territory receiving investment, In case that place and Vietnam have signed a one-way or multi-way agreement or agreement, regulating the use of Vietnam Dong in payment and money transfer transactions)
- Principles for opening and using investment capital accounts
- Open an investment capital account
Immediately after being granted the certificate of investment registration abroad, the investor must open an investment capital account in a foreign currency in accordance with the requirements for transferring investment capital abroad at a credit institution. Licensed and registered for foreign exchange transaction related to overseas investment activities with the State Bank.
- If the transfer of investment capital abroad uses Vietnamese Dong, the investor is allowed to simultaneously open and use an investment capital account in Vietnamese Dong and an investment capital account in foreign currency at an organization. Authorized credit and registered foreign exchange transactions related to overseas investment activities with the State Bank.
- In case an investor has many investment projects abroad, they must open a separate investment capital account for each project.
- For overseas investment projects with the participation of many investors, each investor must open a separate investment capital account to transfer capital abroad, within the total investment capital and percentage. Contributed capital according to the Certificate of overseas investment registration issued by a competent Vietnamese agency.
- Exchange foreign currency for investment
In case you want to change your investment capital account to another foreign currency or change the credit institution where the account is opened, the investor should take the following steps:
Step 1: Open an investment capital account in another foreign currency or open an investment capital account at another licensed credit institution;
Step 2: Register changes in foreign exchange transactions related to overseas investment activities with the State Bank
Step 3: Within 05 working days from the date the State Bank confirms the registration to change the investment capital account, the investor must transfer the entire balance from the currently used investment capital account to the investment capital account. new investment capital.
NOTE:
- After the above deadline, the credit institution where the investor is using the investment capital account does not allow the use of this account to carry out revenue and expenditure transactions as prescribed in Articles 6 and 7 of this Law. Circular 06/VBHN-NHNN.
- Investment capital accounts in other foreign currencies or investment capital accounts at other authorized credit institutions may only be used to carry out revenue and expenditure transactions as prescribed in Articles 6 and 7 of Circular 06. /VBHN-NHNN after completing the above procedures.
- All revenue and expenditure transactions according to the provisions of Article 6 and Article 7 of Circular 06/VBHN-NHNN, after confirmation of foreign exchange transaction registration by the State Bank, must be performed through the investment capital account private.
- Before being granted an Investment Registration Certificate abroad, what should investors pay attention to when wanting to transfer foreign currency abroad?
Article 15 of Circular 06/VBHN-NHNN stipulates the principles for transferring foreign currency abroad before receiving the Foreign Investment Registration Certificate, including:
- Money transfer obligation: Investors, when making investments abroad, need to transfer foreign currency abroad before receiving the Certificate of Investment Registration abroad, in order to meet costs related to the transfer of money. activities of forming investment projects abroad.
- The limit for transferring foreign currency abroad before obtaining the Certificate of investment registration abroad does not exceed 5% of total investment capital abroad and does not exceed 300,000 USD, which is included in the total investment capital abroad. outside (Article 4 of Decree No. 83/2015/ND-CP)
- The above foreign currency transfer must be done via foreign currency account before investing, according to the provisions of Clause 1 of Article 16 of Circular 06/VBHN-NHNN.
- Investors must be solely responsible for ensuring that the foreign currency transferred abroad before obtaining the Certificate of Outward Investment Registration will be used for the correct purpose in accordance with the law on outward investment. , foreign exchange management and other relevant legal regulations.
- Investors need to provide authorized credit institutions with documents proving the transfer of foreign currency abroad before obtaining the Certificate of registration of investment abroad.
- The total amount of money transferred abroad before and after obtaining the Certificate of registration of investment abroad must not exceed the total capital invested abroad in cash according to the Certificate of registration of investment abroad.
- In case of participation of many investors, the total amount of money transferred abroad before and after obtaining the Certificate of Investment Registration abroad for each investor must not exceed the capital invested abroad. with that investor’s money according to the Certificate of overseas investment registration.
- The State Bank will confirm the amount of foreign currency transferred abroad before obtaining the Certificate of registration of investment abroad through a document confirming foreign exchange transactions related to investment activities abroad.
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