Foreign Investors Transfer Money from Abroad to Vietnam through Which Account?
What is a foreign investor?
Through which account do foreign investors transfer money from abroad to Vietnam?
How many direct investment accounts can a foreign investor open at most?
What is a Foreign Investor?
According to Clause 19 Article 3 of the Investment Law 2020, the regulation on foreign investors is as follows:
Glossary
In this Law, the following terms shall be construed as follows:
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- A foreign investor is an individual with foreign nationality or an organization established under foreign law that undertakes investment activities in Vietnam.
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Simultaneously, Clause 1 Article 3 of Circular 06/2019/TT-NHNN stipulates about foreign investors as follows:
Glossary
In this Circular, the following terms shall be construed as follows:
- “Foreign investor” includes: individuals with foreign nationality, and organizations established under foreign law that undertake direct foreign investment activities in Vietnam.
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Therefore, a foreign investor is an individual with foreign nationality or an economic organization established under foreign law that undertakes investment activities in Vietnam.
Foreign investors transferring money from abroad to Vietnam through which account? (Image from the Internet)
Through which account does a foreign investor transfer money from abroad to Vietnam?
Pursuant to Clause 1 Article 5 of Circular 06/2019/TT-NHNN, which stipulates the opening and use of direct investment capital accounts as follows:
Opening and using direct investment capital accounts
- Subjects eligible to open and use direct investment capital accounts include:
a) Enterprises with direct foreign investment as stipulated in Clause 2 Article 3 of this Circular;
b) Foreign investors participating in BCC contracts, and foreign investors directly implementing PPP projects in case a project enterprise is not established (hereinafter referred to as foreign investors directly implementing PPP projects).
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Additionally, Clause 1 Article 8 of Circular 06/2019/TT-NHNN stipulates the transfer of money for investment preparation activities as follows:
Transferring money for investment preparation activities
- Prior to receiving an Investment Registration Certificate, a Notice of meeting conditions for capital contribution, share purchase, or capital contribution purchase of a foreign investor, an Establishment and Operation License in accordance with specialized law, or signing a PPP contract, foreign investors are permitted to transfer money from abroad or from their foreign currency or VND payment account opened at an authorized bank in Vietnam to cover legitimate expenses during the investment preparation phase in Vietnam.
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When foreign investors transfer money from abroad to Vietnam for project implementation, they must do so through a direct investment capital account.
How many direct investment accounts can a foreign investor open?
According to Clause 2 Article 5 of Circular 06/2019/TT-NHNN, which stipulates the opening and use of direct investment capital accounts, as follows:
Opening and using direct investment capital accounts
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- Subjects stipulated in Clause 1 of this Article shall open direct investment capital accounts as per the following regulations:
a) Must open direct investment capital accounts in foreign currency at an authorized bank to conduct lawful transactions in foreign currency related to direct foreign investment activities in Vietnam;
b) Corresponding to the type of foreign currency used for investment capital contribution, only one direct investment capital account in that foreign currency can be opened at an authorized bank;
c) In the case of investment in VND, a direct investment capital account in VND can be opened at an authorized bank where a direct investment capital account in foreign currency has already been opened to conduct lawful transactions in VND related to direct foreign investment activities in Vietnam;
d) In the case of foreign investors participating in multiple BCC contracts or directly implementing multiple PPP projects, separate direct investment capital accounts must be opened corresponding to each BCC contract or PPP project, regardless of whether they are at the same authorized bank or not.
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When a foreign investor opens direct investment capital accounts in Vietnam, the following conditions must be met:
[1] The foreign investor must open a direct investment capital account in foreign currency at one authorized bank to conduct lawful transactions related to foreign currency for direct foreign investment activities in Vietnam;
[2] Corresponding to the type of foreign currency used for investment capital contribution, only one direct investment capital account in that foreign currency can be opened at one authorized bank;
[2] When the foreign investor invests in VND, an additional direct investment capital account in VND can be opened at the authorized bank where the foreign currency investment account was previously opened;
[3] In the case of PPP projects or BCC contracts, the foreign investor must open separate investment accounts for each project or contract, regardless of whether they are at the same authorized bank or not.
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