On 26 June 2019, the State Bank of Viet Nam issued Circular No. 06/2019/TT-NHNN on guiding foreign exchange control for foreign direct investment (FDI) activities. Accordingly, Circular 06 features some key points as follows:
Foreign direct investment activities in Vietnam
According to Circular 06, foreign direct investment activities in Vietnam include:
- Contribute investment capital;
- Open and use direct investment capital accounts in foreign currencies and in Vietnamese dong;
- Transfer money to conduct investment preparation activities;
- Remit capital, profits and lawful income overseas; and
- Transfer investment capital, and transfer investment projects.
Entities entitled to open direct investment capital accounts
- Enterprises with foreign direct investment capital;
- Foreign investors engaging in business cooperation contracts (BCC); and foreign investors engaging in PPP projects.
Transferring money to conduct investment preparation activities
Foreign investors are allowed to transfer money from overseas or from a foreign account in a foreign currency or Vietnamese dong which has been opened at a licensed credit institution in Vietnam, for paying all legitimate costs in the preparation period of their investments in Vietnam.
Remitting capital, profits and lawful revenue overseas
- Foreign investors must use their direct investment accounts to transfer oversea those amounts.
- Foreign direct investment enterprises which must close their direct investment capital accounts due to dissolution, bankruptcy, etc. are permitted to use their payment accounts in foreign currencies or Vietnamese dong to conduct procedures for remitting capital and other lawful revenue overseas.
Circular No. 06/2019/TT-NHNN will take effect from 06 September 2019 and supersede Circular No. 19/2014/TT-NHNN dated 11 August 2014.