Vietnam: A proprietary trader must open 01 foreign currency account for outward portfolio investment

Specifically, Decree No. 135/2015/ND-CP of Vietnam’s Government stipulates that a proprietary trader must open 01 (one) account that holds capital for outward portfolio investment at 01 (one) commercial bank or foreign bank’s branch permitted to provide foreign exchange services in Vietnam to collect and make payments related to its proprietary trading of outward portfolio investments (not applicable to proprietary traders that are securities investment companies and securities investment funds making outward portfolio investments through fund management companies).

However, if a proprietary trader, as a securities investment fund or securities investment company, makes outward portfolio investments through a fund management company, the fund management company must open 01 (one) foreign currency account that holds capital for outward portfolio investments at 01 (one) commercial bank or foreign bank’s branch permitted to provide foreign exchange services in Vietnam. An account is opened separately for each securities investment fund or securities investment company to collect and make payments related to the securities investment fund’s or securities investment company’s proprietary trading of outward portfolio investments.

* Vietnam State Bank regulates the opening and use of accounts for proprietary trading of outward portfolio investment and outward portfolio investment trust.

Other provisions can be found in Decree No. 135/2015/ND-CP of Vietnam’s Government, which takes effect from February 15, 2016.

Thu Ba

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