Amending Ordinance on Foreign Exchange Control 2013: Foreign investment in Vietnam

According to Clauses 4, 5 Article 1 of the Amending Ordinance on Foreign Exchange Control 2013 amending and supplementing Articles 11, 12 of the Ordinance on Foreign Exchange Control 2005 of Vietnam, foreign investment in Vietnam is conducted in two forms: direct and indirect investment. These 2 forms of foreign investment are regulated as follows:

- Foreign direct investment in Vietnam:

+ Enterprises possessing foreign direct investment capital, foreign investors joining contract of business cooperation must open accounts of direct investment capital at an authorized credit institutions. The contribution of investment capital, remittance of principal investment capital and profits and other lawful revenue must be effected via these accounts.

+ Lawful revenue of foreign investors from activities of foreign direct investment in Vietnam may be used for reinvestment or remittance abroad. In case where the stated-above revenue is amount in Vietnam dong, they may be used to buy foreign currency for remittance abroad at authorized credit institutions.

+ Other lawful transactions of capital transfer relating to direct investment activities shall comply with relevant laws and guidance of the State bank of Vietnam.

- Foreign indirect Investment in Vietnam:

+ Foreign investors being non-residents must open indirect investment accounts in Vietnam for implementation of indirect investment in Vietnam. Indirect investment capital in foreign currency must be converted into Vietnam dong for implementation of the investment through these accounts.

+ Lawful revenue of foreign investors being non-residents from activities of foreign indirect investment in Vietnam may be used for reinvestment or buying foreign currency at authorized credit institutions for remittance abroad.

+ The State bank of Vietnam shall provide the opening and use of accounts in Vietnam for implementation of indirect investments and other lawful transactions of capital transfer relating to indirect investment activities in Vietnam.

View more amendments and supplements at the Amending Ordinance on Foreign Exchange Control 2013 of Vietnam takes effect from January 01, 2014.

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