Circular 20: Vietnam’s regulations on the purchase and sale of foreign currencies in cash of individuals

According to Circular No. 20/2011/TT-NHNN of the State Bank of Vietnam, the purchase and sale of foreign currencies in cash between individuals and authorized credit institutions are prescribed as follows:

1. Place of buying, selling foreign currency

- The purchase, sale of foreign currencies in cash shall be performed at places which are authorized to sell foreign currencies in cash belonging to the operating network of authorized credit institutions in line with provisions of applicable laws.

- The selling of foreign currencies in cash by individuals shall be performed at places which are authorized to purchase foreign currencies in cash belonging to the operating network of authorized credit institutions in line with provisions of applicable laws and their foreign currency exchange agents.

2. Types of foreign currency permitted to buy

Individuals being Vietnamese citizen shall be entitled to buy foreign currencies in cash at authorized credit institutions to satisfy their foreign currency demands as stipulated in Paragraph 1, Article 2 of this Circular according to following principles:

- Entitled to buy foreign currency which is the local currency of the country where Vietnamese citizen comes.

- Where they do not have local currency of the country where Vietnamese citizen comes, authorized credit institutions shall sell other freely convertible foreign currencies.

3. Limit of purchasing foreign currency

- Individuals being Vietnamese citizen shall be entitled to buy foreign currencies in cash at authorized credit institutions to satisfy their demands for foreign currencies as stipulated in Paragraph 1, Article 2 of this Circular with the limit of 100 USD/1 person/1 day or other foreign currencies with the same value within the time of ten (10) days when they stay in foreign countries. The above foreign currency limit is also applicable to children sharing passport with their parent.

- Authorized credit institutions shall be obliged to sell foreign currencies in cash to individuals who are Vietnamese citizen in accordance with provisions in Paragraph 1 of this Article on the basis of presentation of application forms and documents.

- Based on the ability to self balance their foreign currency source in cash, authorized credit institutions may sell an amount of foreign currencies in excess of the limit as stipulated in Paragraph 1 of this Article to satisfy foreign currency demands as stipulated in Paragraph 1, Article 2 of this Circular.

More details can be found in Circular No. 20/2011/TT-NHNN of the State Bank of Vietnam, which takes effect from October 15, 2011.

Thuy Tram

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