Guidelines for Bilateral Payment and Money Transfer Activities between Vietnam and Laos from July 15, 2024

Guidelines for Bilateral Payment and Money Transfer Activities between Vietnam and Laos from July 15, 2024

According to the Circular, the currency for payment and money transfer between Vietnam and Laos shall be VND, LAK, or freely convertible foreign currencies.

The payment methods and money transfer for sale and purchase of goods and the provision of services between Vietnam and Laos include:

- Payment and money transfer through authorized banks;

- Clearing (payment of the difference in the clearing transaction of exported goods and services with imported goods and services in Vietnam-Laos border trade operations through authorized banks).

Regarding the opening and use of LAK accounts or VND accounts: 

- Resident organizations and individuals and non-resident Lao organizations and individuals are allowed to open and use LAK accounts at authorized banks for purposes related to bilateral payment and money transfer between Vietnam and Laos.

The use of LAK accounts (including the transfer of LAK between accounts of the same account holder) shall be carried out in accordance with the regulations on the use of foreign currency accounts by resident organizations and individuals and non-resident organizations and individuals as stipulated in Articles 3, 4, 5, 6, and Clause 1 of Article 8 of Circular No. 16/2014/TT-NHNN and other replacing, amending, and supplementing documents. 

- Resident organizations are permitted to open and use VND payment accounts at banks in Laos for purposes related to payment and money transfer for current transactions, capital transactions, and transactions permitted in Laos, in compliance with Vietnamese law and relevant Lao law.

See more details in Circular No. 04/2024/TT-NHNN, which comes into force as of July 15, 2024 and annuls Decision No. 845/2004/QD-NHNN on the issuance of the Regulations on payment in the purchase and sale, exchange of goods, investment services and aid between Vietnam and Laos.

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