Revenues and expenditures transactions on direct investment accounts in Vietnam dong

What are the regulations on the revenues and expenditures transactions on direct investment accounts in Vietnam dong? - Hoang Chau (Tien Giang, Vietnam)

Revenue and expenditure transactions on direct investment capital account in Vietnam dong

Revenues and expenditures transactions on direct investment accounts in Vietnam dong (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is direct investment account?

According to Clause 5, Article 3 of Circular 06/2019/TT-NHNN, direct investment account means foreign currency or Vietnam dong demand accounts opened by FDI enterprises and foreign investors at authorized banks to perform transactions regarding the foreign direct investment in Vietnam under the regulations stated in Article 5, 6 and 7 of Circular 06/2019/TT-NHNN.

2. Revenues transactions on direct investment accounts in Vietnam dong

Revenues transactions on direct investment accounts in Vietnam dong according to Clause 1, Article 7 of Circular 06/2019/TT-NHNN include:

- Capital contribution in Vietnam dong of Vietnamese, foreign investors of a FDI enterprise, foreign investors involving in BCC or directly implementing PPP projects;

- Payment for the ownership transfer of investment capital and investment projects in accordance with provisions in Article 10 of this Circular;

- Distributable profits in Vietnam dong of Vietnamese, foreign investors of a FDI enterprise, foreign investors involving in BCC or directly implementing PPP projects, project managers of petroleum projects in order to increase capital and expand investment activities in Vietnam;

- Revenues from Vietnam dong demand accounts opened at authorized banks of FDI enterprises, foreign investors involving in BCC or directly implementing PPP projects in order to transfer of invested capital, profits and legal receipts to foreign countries;

- Capital surplus from issuance of additional shares in order to raise the charter capital of FDI enterprises;

- Other revenues relating to foreign loans in Vietnam dong of FDI enterprises which are eligible to be granted overseas loans in Vietnam dong according to current laws on overseas loan receipt and repayment of enterprises;

- Other lawful revenues in Vietnam dong relating to foreign direct investment in Vietnam.

3. Expenditures transactions on direct investment accounts in Vietnam dong

Expenditures transactions on direct investment accounts in Vietnam dong according to Clause 2, Article 7 of Circular 06/2019/TT-NHNN include:

- Amounts transferred to Vietnam dong demand accounts opened at authorized banks of the same FDI enterprise, the foreign investors involving in BCC or directly implementing PPP projects, project managers of petroleum projects according to laws on petroleum for foreign direct investment in Vietnam ;

- Payments for transfer of stakes and investment projects to transferors in Vietnam or payments for the purchase of foreign currencies for such transactions to overseas transferors in accordance with provisions prescribed in Article 10 of this Circular;

- Payments for purchasing foreign currency at authorized credit institutions to transfer their capitals, profits and legal earnings overseas;

- Transfer of direct investment in Vietnam dong to Vietnamese investors or payments for purchasing foreign currencies to be transferred as direct investment to  foreign investors in case of capital reduction, finish, termination of investment projects, BCC, PPP contracts in accordance with law on investment;

- Payments relating to foreign loans in Vietnam dong of FDI enterprises which are eligible to be granted overseas loans in Vietnam dong according to current laws on taking and repaying overseas loans;

- Other lawful expenditures in Vietnam dong relating to foreign direct investment in Vietnam.

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