Cases of purchase, transfer and carrying of foreign currency abroad for one-way money transfer purposes of organizations in Vietnam

Cases of purchase, transfer and carrying of foreign currency abroad for one-way money transfer purposes of organizations in Vietnam (Internet image)

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

1. Cases of purchase, transfer and carrying of foreign currency abroad for one-way money transfer purposes of organizations in Vietnam

Cases of purchase, transfer and carrying of foreign currency abroad for one-way money transfer purposes of organizations in Vietnam according to Article 4 of Circular 20/2022/TT-NHNN are as follows:

- Cases of purchase, transfer and carrying of foreign currency abroad to serve the organization's sponsorship and aid purposes:

+ Purchase, transfer, carrying of foreign currency abroad for sponsorship and aid according to commitments and agreements between the State, Government, local authorities and foreign countries. Sponsorship and aid sources are funds from the budget or the money source of the funding body itself;

+ Purchase and transfer of foreign currency abroad to provide finance and aids in mitigating the impacts of natural disasters, epidemics and wars. Sources of sponsorship and aids are voluntary contributions from domestic organizations and individuals and/or funds from the funding body itself;

+ Purchase and transfer of foreign currency abroad to finance programs, funds and projects established by domestic and/or overseas organizations for the purpose of supporting and encouraging development in the fields of: culture, education (scholarship funding), health. Sources of sponsorship is the funding source of the funding body itself.

- Cases of purchase and transfer of money abroad by an organization to serve other purposes:

+ Award prize money to non-residents being overseas organizations and individuals participating in programs and contests held in Vietnam in accordance with relevant laws. The source of prize money is from non-residents being overseas organizations or individuals or residents being organizations;

+ One-way money transfer abroad for the following purposes from sponsorship sources received by non-residents being overseas organizations and individuals:

(i) Allocate funding to overseas members to participate in scientific research projects in Vietnam and abroad;

(ii) Refund sponsorships for projects in Vietnam according to commitments and agreements with foreign parties.

2. Regulations on purchase of foreign currency to transfer or carry it abroad in Vietnam

Regulations on purchase of foreign currency to transfer or carry it abroad according to Article 6 of Circular 20/2022/TT-NHNN are as follows:

- An organization that wishes to buy a foreign currency to transfer or carry it abroad for any of the purposes specified in Article 4 of Circular 20/2022/TT-NHNN shall comply with the instructions of the authorized bank.

- In case a resident being organization wishes to buy a foreign currency from an authorized bank to carry it abroad for any of the purposes specified at Point a, Clause 1, Article 4 of Circular 20/2022/TT-NHNN with a given amount subject to customs declaration, the authorized bank shall issue a certificate of carrying cash in foreign currency abroad according to regulations on carrying cash in foreign currency upon entry and exit.

- Within the available foreign currency capacity, the authorized bank shall sell the foreign currency to such resident to transfer or carry it abroad for the given purpose specified in Article 4 of Circular 20/2022/TT-NHNN.

3. Regulations on purchase of foreign currency to transfer or carry it abroad in Vietnam

Regulations on purchase of foreign currency to transfer or carry it abroad in Vietn according to Article 11 of Circular 20/2022/TT-NHNN are as follows:

- Residents being Vietnamese citizens who wish to buy foreign currency to transfer or carry it abroad by for the purposes of one-way money transfer specified in Clause 2, Article 7 of Decree 70/2014/ND-CP shall comply with the instructions of the authorized banks.

- In case a resident being Vietnamese citizen wishes to buy a foreign currency from an authorized bank to carry it abroad for any of the purposes with a given amount subject to customs declaration, the authorized bank shall issue a certificate of carrying cash in foreign currency abroad according to regulations on carrying cash in foreign currency upon entry and exit.

- Within the available foreign currency capacity, the authorized bank shall sell the foreign currency to such Vietnamese citizen to transfer or carry it abroad for the given purpose specified in Circular 20/2022/TT-NHNN.

- A resident being Vietnamese citizen who wishes to buy a cash in foreign currency to carry it abroad for the purpose of study, medical treatment, business, travel or visitation may buy the foreign currency of the country where he/she visits at an authorized bank. In case there is no currency of the country where the Vietnamese citizen visits, the bank is allowed to sell another freely convertible foreign currency.

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