Can FDI Enterprises Transact with Export Processing Enterprises in Foreign Currency?

The 2020 Investment Law does not directly refer to FDI enterprises but provides a general definition in Clause 17, Article 3 as follows:

"Economic organization with foreign investment is an economic organization with foreign investors being members or shareholders."

According to this provision, it can be understood that FDI enterprises are enterprises with direct foreign investment, regardless of the proportion of capital contributed by the foreign party.

Regarding the use of foreign exchange by export processing enterprises, according to the provisions in Point

The 2020 Investment Law does not directly mention this type of enterprise but only provides a general definition in Clause 17, Article 3 as follows: "Economic organization with foreign investment is an economic organization with foreign investors being members or shareholders."

According to this provision, it can be basically understood that FDI enterprises are enterprises established and operating under Vietnamese law but with direct foreign investment, regardless of the proportion of capital contributed by the foreign party.

Regarding the issue of foreign exchange usage by FDI enterprises with export processing zones, based on the provisions at Point a, Clause 12, Article 4 of Circular 32/2014/TT-NHNN:

Domestic enterprises are allowed to quote prices, determine prices in foreign currencies, and receive payment by foreign currency transfer when selling goods to export processing enterprises.

According to this provision, in the case where an FDI enterprise sells goods to an export processing enterprise, the two parties are allowed to conduct payment transactions by foreign currency transfer. In all other cases, the two parties are not allowed to transact with each other in foreign exchange.

Sincerely!