Rules for opening and use of pre-investment foreign currency account in petroleum industry in Vietnam

Rules for opening and use of pre-investment foreign currency account in petroleum industry in Vietnam (Image from the Internet)

According to Article 7 of Circular 31/2018/TT-NHNN (effective from February 1, 2019) stipulating the rules for opening and use of pre-investment foreign currency account in petroleum industry:

1. The investor is allowed to open only one pre-investment foreign currency account at a licensed credit institution, except the case prescribed in Clause 4 of this Article. If the investment project abroad is invested by two or more investors, each of these investors must open a pre-investment foreign currency account at the same licensed credit institution for making transfer of foreign currency abroad before investment.

2. If the investor wishes to make pre-investment transfer of foreign currency abroad for several investment projects abroad, he/she is required to open the pre-investment foreign currency account separately for each project.

3. The pre-investment foreign currency accounts prescribed in Clause 1 and Clause 2 of this Article shall be used as the investment capital accounts after the investment project is granted the outward investment registration certificate.

4. If the investor wishes to change either the type of foreign currency of his/her pre-investment foreign currency account or the licensed credit institution at which his/her account is opened, the following principles shall apply:

a) Open a pre-investment foreign currency account in another foreign currency type or at another licensed credit institution;

b) Within 05 (five) business days from the date on which the pre-investment foreign currency account is opened in another type of foreign currency, the investor must convert the entire balance on the previous pre-investment foreign currency account into the new foreign currency type, transfer it to the new pre-investment foreign currency account, and carry out procedures for closing the previous one. Within 05 (five) business days from the date on which the pre-investment foreign currency account is opened at another licensed credit institution, the investor must transfer the entire balance on the previous pre-investment foreign currency account to the new one and carry out procedures for closing the previous one;

c) The investor is allowed to make collections or payments on the new pre-investment foreign currency account only after completing all procedures for closure of the previous pre-investment foreign currency account (except the receipt of the balance transferred from the previous pre-investment foreign currency account or the receipt of the balance in the new type of foreign currency converted from the previous foreign currency balance on the previous pre-investment foreign currency account in case of change of the foreign currency type);

d) Within 15 (fifteen) business days from the completion of the procedures specified in Point a and Point b of this Clause, the investor shall submit a report to the SBV (via the Foreign Exchange Management Department) on the change of the pre-investment foreign currency account in case the pre-investment transfer of foreign currency requires the SBV's approval as regulated in Article 6 hereof.

5. Any collections and payments prescribed in Article 8 hereof must be made through the pre-investment foreign currency account.

6. Procedures for opening and closure of the pre-investment foreign currency account shall comply with the SBV’s regulations on opening and use of payment accounts at payment service providers.

Above are the regulations on rules for opening and use of pre-investment foreign currency account in petroleum industry.

Best regards!