When shall the foreign investor open a capital account for indirect investment in Vietnam?

11:28, 16/03/2014

This content is specified in Circular No. 05/2014/TT-NHNN of the State Bank of Vietnam guiding the opening and use of indirectly-invested capital accounts for implementation of foreign indirect investment activities in Vietnam.

According to Circular No. 05/2014/TT-NHNN of the State Bank of Vietnam, the opening of capital accounts for indirect investment is specified as follows:

- When conducting indirect investment activities in Vietnam, the foreign investor will have to open one (01) capital account of indirect investment at one (01) licensed bank for implementation of receipt-payment transactions permitted under provisions of Article 7 of this Circular.

- In the case where the foreign investor is having and using a capital account of indirect investment at a licensed bank but has demand to open another indirectly-invested capital account in another licensed bank, such foreign investor is requested to close the existing capital account for direct investment, transfer all the balance in this account to the new account. Procedure on the opening and closing of the capital account for indirect investment will be conducted according to provisions of the licensed bank.

Note: The foreign investor will only be entitled to conduct receipt and expense transactions on the newly-opened capital account of indirect investment as prescribed above after having the previously-opened capital account of indirect investment closed and settled.

View full text in Circular No. 05/2014/TT-NHNN of the State Bank of Vietnam, which takes effect from April 28, 2014.

Thu Ba

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