Is there any fine for selling or buying foreign currency at unlicensed currency exchange entities in Vietnam?

Is there any fine for selling or buying foreign currency at unlicensed currency exchange entities in Vietnam?

Pursuant to Clause 1 Article 23 of the Decree 88/2019/NĐ-CP stipulating as follows:

1. A warning shall be issued for committing one of the following violations:

a) selling and buying foreign currency between individuals if the value of foreign currency sold or bought is less than USD 1.000 (or equivalent value in another foreign currency);

b) selling or buying foreign currency at unlicensed currency exchange entities if the value of foreign currency sold or bought is less than USD 1.000 (or equivalent value in another foreign currency);

c) failing to comply with law regulations when making payment for goods or services in foreign currency with total payment of less than USD 1.000 (or equivalent value in another foreign currency).

As regulations above, if you bring 700 US dollars to exchange Vietnamese dong at a place that is not allowed to collect foreign exchange, you will be warned for the first violation.

Is there any fine for selling or buying foreign currency at unlicensed currency exchange entities in Vietnam? - Source: Internet

Can Vietnamese citizens exchange Vietnamese currency to foreign currency?

Pursuant to Article 2 of the Circular 20/2011/TT-NHNN stipulating subjects of application as follows:

1. Individuals who are Vietnamese citizen shall be authorized to buy foreign currency in cash at authorized credit institutions to satisfy spending demand of their own as well as of children sharing passport with their parent, including: food expense, pocket money, travel expense in foreign country related to one of following purposes:

a. Study, medical treatment in abroad;

b. Going on business, travelling, visiting overseas.

2. For other legal purposes as stipulated in Paragraph 2, Article 8 of the Decree No.160/2006/ND-CP dated 28 December 2006 of the Government providing in details for the implementation of the Ordinance on Foreign Exchange, an individual may buy foreign currency in cash at an authorized credit institution depending on its ability to balance source of foreign currency in cash.

3. Individuals being foreigners who have legal income source in Vietnamese Dong shall be entitled to buy foreign currency in cash at authorized credit institutions in line with current provisions on foreign exchange control.

4. Individuals selling foreign currency in cash to authorized credit institutions and foreign currency exchange agents of such authorized credit institutions in accordance with current provisions on foreign exchange control.

As regulations above, Vietnamese citizens residing in Vietnam can exchange Vietnamese dong for foreign currency at authorized financial institutions to serve the above purposes.

How to determine currencies and exchange rates in Vietnam?

Pursuant to Article 5 of the Circular 02/2021/TT-NHNN stipulating currencies and exchange rates as follows:

1. Each authorized credit institution shall stipulate the foreign currencies to be traded.

2. The spot exchange rate between VND and USD of an FX spot or FX spot within a currency swap shall be determined based on the official rate announced by the State Bank on the transaction date and within the margin decided by the State Bank.

3. The forward rate between VND and USD in an FX forward or an FX forward within a currency swap shall be agreed upon by the parties thereto but not exceed the exchange rate determined based on:

a) The spot exchange rate on the transaction date;

b) The difference between two existing interest rates which are the refinancing interest rate announced by the State Bank and Federal Funds Target Rate. If the Federal Funds Target Rate is within the margin, the lowest interest rate in the margin shall apply.

c) Term of the transaction.

4. Exchange rates between VND and other currencies other than USD and between foreign currencies with each other in foreign currency transactions shall be agreed upon by the parties thereto.

5. Authorized credit institutions must publish spot exchange rates between VND and other currencies when making transactions with clients at their foreign currency transaction locations and on their official websites (if any). Authorized credit institutions shall make transactions with their clients at published exchange rates, unless otherwise agreed upon by both parties.

Above are regulations on determination of currencies and exchange rates in Vietnam.

Best regards!