Vietnam: A foreign currency account for outward portfolio investment trust is required

According to Clause 2 Article 11 of Decree No. 135/2015/ND-CP of Vietnam’s Government, in cases the activities of outward portfolio investments of economic organizations are carried out by outward portfolio investment trust, a foreign currency account for outward portfolio investment trust is required. Some important contents that should be noted are as follows:

- A delegated organization must open 01 (one) foreign currency account that holds trust capital for outward portfolio investments 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 the activities of outward portfolio investment trust;

- The delegated organization must manage separately the sum of investment money entrusted by each investor and manage separately the investment money entrusted by investors and the money for proprietary trading of outward portfolio investments.

Notably, an investor is only allowed to make outward portfolio investments through the investment instruments regulated by Vietnam State Bank.

Besides, Decree No. 135/2015/ND-CP also stipulates the opening of the foreign currency account abroad as follows:

- Proprietary traders and trust organizations are allowed to open foreign currency accounts in foreign nations to collect and make payments related to the activities of outward portfolio investment according to the regulations of such nations;

- Proprietary traders and trust organizations are only allowed to open foreign currency accounts in foreign nations according to Point a, Section 3 of this Article upon the specialized management bodies’ issuance of the certificate of outward portfolio investment registration, the written approval of outward portfolio investment, the certificate of outward portfolio investment trust registration and upon Vietnam State Bank's confirmation of the registrations of proprietary trading limit and trust limit.

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

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE