What are the responsibilities of credit institutions in foreign exchange management for foreign direct investment in Vietnam?
- What are the general rules in foreign direct investment in Vietnam?
- What are the responsibilities of credit institutions in foreign exchange management for foreign direct investment in Vietnam?
- What are the responsibilities of foreign-invested enterprises in foreign exchange management for foreign direct investment in Vietnam?
What are the general rules in foreign direct investment in Vietnam?
General rules in foreign direct investment activities in Vietnam according to Article 4 of Circular No. 06/2019/TT-NHNN are as follows:
- 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 public-private partnership 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.
- Issues regarding foreign short-term, medium-term, long-term loans of FDI enterprises (transactions of fund withdrawal, payment of principal and interest, fees; foreign borrowing and debt repayment accounts) shall be governed by regulations of borrowing and debt repayment by enterprises.
- The use of foreign investors’ distributable profit in the territory of Vietnam must comply with current regulations on the foreign exchange management and other related laws.
What are the responsibilities of credit institutions in foreign exchange management for foreign direct investment in Vietnam?
What are the responsibilities of credit institutions in foreign exchange management for foreign direct investment in Vietnam?
Pursuant to Article 11 of Circular No. 06/2019/TT-NHNN stipulating the responsibilities of credit institutions in foreign exchange management for foreign direct investment activities in Vietnam as follows:
- Provide instructions for FDI enterprises and foreign investors in producing valid documents in accordance with current laws on foreign exchange management.
- Open or close direct investment accounts at the request of FDI enterprises or foreign investors in accordance with regulation of Circular No. 06/2019/TT-NHNN.
- Examine and store required records appropriate for transactions to ensure the provision of foreign exchange services for FDI enterprises and foreign investors is for the right purpose and in accordance with law.
- Request FDI enterprises and foreign investors to provide documents related to foreign direct investment in Vietnam.
- Sell foreign currency to foreign investors, FDI enterprises for their overseas transfer on the basis of the subject’s foreign currency self-balance in accordance with lawsoft.
- Confirm in writing at the request of account owners the balance, information of transactions of payment, direct investment accounts of FDI enterprises and foreign investors.
What are the responsibilities of foreign-invested enterprises in foreign exchange management for foreign direct investment in Vietnam?
According to the provisions of Article 12 of Circular No. 06/2019/TT-NHNN on the responsibilities of foreign direct investment enterprises and foreign investors as follows:
- Comply with regulations on foreign direct investment in Vietnam prescribed in this Circular and other related laws.
- Fully and honestly declare transactions related to foreign direct investment in Vietnam; provide documents related to foreign direct investment in Vietnam at the request of authorized credit institutions; take responsibility to law for the authenticity of documents provided to the authorized credit institutions.
- Purchase foreign currency at authorized credit institutions to transfer their capitals, profits and legal earnings overseas in accordance with regulations of this Circular.
- Return the payment for the ownership transfer of the value of capital and investment projects to foreign, Vietnamese investors in the cases that are specified in point b Article 10 of Circular No. 06/2019/TT-NHNN.
- Report relevant issues at the request of the State Bank.
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