Vietnam: 06 rules for pre-investment transfer of foreign currency abroad

According to Circular No. 31/2018/TT-NHNN of the State Bank of Vietnam, rules for pre-investment transfer of foreign currency abroad include:

- The investor is allowed to transfer foreign currency abroad for doing market research, finding investment opportunities and preparing investment before the issuance of the outward investment registration certificate in petroleum industry;

- The investor must make the transfer of foreign currency abroad before investment through the pre-investment foreign currency account;

- The limit on foreign currency to be transferred abroad before investment in a project is the total amount of foreign currency transferred abroad before making investment in that project. If the investment project abroad is invested by more than one investor, the limit on foreign currency to be transferred abroad before investment is the sum of foreign currency amounts transferred abroad by the investors of that project;

- The sum of the foreign currency amount transferred abroad before investment and the one to be transferred after the issuance of the outward investment registration certificate in petroleum as registered of each project shall not exceed total outward investment in cash of that project as specified in the outward investment registration certificate. If the investment project abroad is invested by more than one investor, the sum of the foreign currency amount transferred abroad before investment and the one to be transferred after the issuance of the outward investment registration certificate in petroleum as registered of each investor shall not exceed his/her capital contribution percentage as specified in the outward investment registration certificate;

- If the investment project is not established, or the outward investment project is not executed or granted the outward investment registration certificate, the investor must transfer the remaining foreign currency abroad to Vietnam (if any), and then close the pre-investment foreign currency account;

- The investor shall be legally responsible for the legality, objectives and efficiency of the foreign currency amounts transferred abroad before the investment.

View more details at Circular No. 31/2018/TT-NHNN of the State Bank of Vietnam, effective from February 01, 2019.

-Thao Uyen-

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