Legal Counselling

Vietnam: Collections and payments on pre-investment foreign currency accounts

11:54, 26/12/2018

This is a content mentioned in Circular 31/2018/TT-NHNN issued on December 18, 2018 by the State Bank of Vietnam guiding foreign exchange management for outward investment in the petroleum industry.

According to Circular No. 31/2018/TT-NHNN of the State Bank of Vietnam, the pre-investment foreign currency account is used to receive collections from:

- transferring money from foreign currency accounts of the investor;

- buying foreign currency from licensed credit institutions in accordance with applicable laws;

- transferring foreign currency to Vietnam in case the investor does not use up all money transferred abroad for covering costs of market research, finding investment opportunities and investment preparations before the issuance of the outward investment registration certificate or costs of establishment of the investment project in petroleum abroad are refunded by the foreign party.

- transferring the foreign currency balance in case of change of the pre-investment foreign currency account;

- performing other foreign currency transactions relating the outward investment before the issuance of the outward investment registration certificate.

Concurrently, the pre-investment foreign currency account is used to make payments for:

- transfer of foreign currency abroad to serve the purposes defined in Clause 1 and Clause 4 Article 5 of Decree No. 124/2017/ND-CP of Vietnam’s Government;

- sale of foreign currency to licensed credit institutions;

- transfer of money to foreign currency accounts of the investor.

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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