Use of foreign currency accounts and VND account in Vietnam

 On 1 August 2014, the State Bank of Vietnam (“SBV”) issued Circular No. 16/2014/TT-NHNN (“Circular No. 16”) providing guidance for using foreign currencies accounts and Vietnamese Dong accounts of residents and non-residents at authorized banks.  Circular No.16 takes effect on 15 September 2014.

 Circular No. 16 provides the list of transactions where collection and disbursement can be made out of onshore accounts in foreign currencies and Vietnamese Dong at authorized banks, depending on the type of account holder.

The list of transactions for account holders to use their onshore accounts in foreign currencies and Vietnamese Dong under Circular No. 16 is as follows:

1.   Use of foreign currency accounts of residents being organizations:

Account holders who are residents being organizations are allowed to use onshore accounts in foreign currencies for the following four (4) collection transactions:
 a. Receipt of foreign currency remittances from overseas into [the account];
 b. Receipt of  foreign  currency  remittances in  payment  for  exported goods  and  services  from  the  account of a non-resident being an organization opened at an authorized bank in Vietnam;
 c. Re-depositing any  residual amount  of  the  foreign  currency cash  which  the  organization withdrew for staff to go overseas to work, but was not fully  expended, into the  authorized bank where  such  money  was  withdrawn.  The  organization  must,  when re-depositing foreign  currency cash  into  its  account,  present  to  the  authorized  bank  source  vouchers  relating to  withdrawal  of  such  money from  the  account  and  the  entry/exit  Declaration  certified  by border gate  customs  about  the  amount  of  foreign  currency  cash  brought  into  the  country.  The  entry/exit  Declaration  certified  by border  gate  customs  is  only  valid  for  the  organization  to  deposit foreign currency cash into its foreign currency account for a period of 60 days after the date of entry recorded in such Declaration;
 d. Receipt of foreign currency from lawful domestic revenue sources, comprising:
i. Revenue  from  the  purchase  of  foreign  currency  remittances  at  [transfers  from] authorized credit institutions;
ii. Revenue  being  foreign  currency  remittances  [transfers]  or  deposits  of  foreign  currency  cash  into  the  account  in  cases  of  receipt  of  foreign  currency  within  Vietnam  in accordance  with  State  Bank  regulations  on  use  of  foreign  exchange  within  the  territory of Vietnam.

Account holders who are residents being organizations are allowed to use onshore accounts in foreign currencies for the following eight (8) disbursement transactions:
a. Making sales of foreign currency to authorized credit institutions;
b. Making remittances  [and/or] payments  for  current  transactions  and  for  capital  transactions  in accordance with the law on foreign exchange control;
c.  Conversions into other types of foreign currency in accordance with State Bank regulations;
d.  Conversions into other foreign currency payment instruments;
e.  Withdrawals  of  foreign  currency  cash  for  individuals  working  for  the  organization  when  such individuals are appointed to work overseas;
f.  Making  remittances  [transfers]  or  withdrawing  foreign  currency  cash  in  order  to  pay wages, bonuses and allowances for non-residents, or for residents being foreign individuals;
g. Making  remittances  [and/or]  payments  for  transactions  for  which  domestic  payments  are permitted to be in foreign currency in accordance with State Bank regulations on use of foreign currency within the territory of Vietnam;
h. Making remittances  [transfers]  for  other  lawful  transactions  in  accordance  with  the  law  on  foreign exchange control.

2. Use of foreign currency accounts of residents being individuals  

Account holders who are residents being individuals are allowed to use onshore accounts in foreign currencies for the following four (4) collection transactions:

a. Receipt of foreign currency remittances from overseas into [the account];
b. Receipt of  foreign  currency  remittances  in  payment  for  exported  goods  and  services  from  the  account of a non-resident being an organization opened at an authorized bank in Vietnam;
c. Receipt of foreign currency cash from overseas into [the account]. Foreign currency cash paid  into  the  account must have a Certificate from  border gate customs in  accordance with the  law on foreign exchange control;
d. Receipt of foreign currency from lawful domestic revenue sources, comprising:
- Residents  being  foreign  individuals  are  permitted  to  receive  wages,  bonuses  and  allowances, and to purchase foreign currency from lawful VND sources;
- Other lawful receipts in accordance with the law on foreign exchange control.

Account holders who are residents being individuals are allowed to use onshore accounts in foreign currencies for the following nine (9) disbursement transactions:

a. Making sales of foreign currency to authorized credit institutions;
b.  Making  remittances  [and/or]  payments  for  current  transactions  and  for  capital  transactions  in  accordance with the law on foreign exchange control;
c. Conversions into other types of foreign currency in accordance with State Bank regulations;
d. Conversions into other foreign currency payment instruments;
e. Making donations in accordance with law;
f. Withdrawals of foreign currency cash;
g.  Making remittances [transfers] overseas in the case of residents being foreign individuals;
h. Transferring to  foreign  currency  savings  deposits at authorized banks in  the  case  of residents  being Vietnamese citizens;
i. Making  remittances  [and/or]  payments for  transactions  for  which  domestic  payments  are  permitted to be in foreign currency in accordance with State Bank regulations on use of foreign  currency within the territory of Vietnam.

The use of money from foreign currencies accounts for the purpose of inheritance distribution must be made in accordance with related regulations.

3. Use of foreign currency accounts of non-residents being organizations 

Account holders who are non-residents being organizations are allowed to use onshore accounts in foreign currencies for the following four (4) collection transactions:
a. Receipt of foreign currency remittances from overseas into [the account];
b.  Receipt of foreign  currency remittances  from  foreign  currency  accounts of other non-residents within Vietnam;
c.  Re-depositing any  residual amount  of  the  foreign  currency cash  which  the  organization withdrew for staff to go overseas to work, but was not fully  expended, into the  authorized bank where  such  money  was  withdrawn.  The  organization must,  when  re-depositing foreign  currency cash  into  its  account,  present  to  the  authorized  bank  source  vouchers  relating  to  withdrawal  of  such  money from  the  account  and  the  entry/exit  Declaration  certified   by border  gate  customs  about  the  amount  of  foreign  currency  cash  brought  into  the  country.  The  entry/exit  Declaration  certified  by border  gate  customs  is  only  valid  for  the  organization  to  deposit foreign currency cash into its foreign currency account for a period of 60 days after the date of entry recorded in such Declaration;
d. Receipt of foreign currency from lawful domestic revenue sources, comprising:
  Revenue  from  the  purchase  of  foreign  currency  remittances  at  authorized  credit institutions;
  Revenue  being  foreign  currency  remittances  or  deposits  of  foreign  currency  cash  into the  account  in  cases  of  receipt  of  foreign  currency  within  Vietnam  in  accordance  with  State Bank regulations on use of foreign exchange within the territory of Vietnam.

Account holders who are non-residents being organizations are allowed to use onshore accounts in foreign currencies for the following nine (9) disbursement transactions:
a) Making sales of foreign currency to authorized credit institutions;
b) Making  remittances  [and/or]  payments  for  current  transactions  and  for  capital  transactions  in  accordance with the law on foreign exchange control;
c)  Conversions into other types of foreign currency in accordance with State Bank regulations;
d)  Conversions into other foreign currency payment instruments;
e)  Withdrawals  of  foreign  currency  cash  for  individuals  working  for  the  organization  when  such individuals are appointed to work overseas;
f) Making remittances or withdrawing foreign  currency cash in  order to  pay wages, bonuses and  allowances for non-residents or for residents being foreign individuals;
g)  Making  remittances  overseas  or  transfers  into  the  foreign  currency  accounts  of  another  non-resident;
h)  Making payment for exported goods and services to a resident;
i) Making  remittances  [and/or]  payments for  transactions  for  which  domestic  payments  are  permitted to be in foreign currency in accordance with State Bank regulations on use of foreign  currency within the territory of Vietnam

4. Use of foreign currency accounts of non-residents being individuals

Account holders who are non-residents being individuals are allowed to use onshore accounts in foreign currencies for the following four (4) collection transactions:
a. Receipt of foreign currency remittances from overseas into [the account];
b. Receipt of foreign currency cash into the account. Foreign currency cash paid into the  account  must  have  certification  from  border  gate  customs  in  accordance  with  the  law  on  foreign  exchange control;
c. Receipt of foreign currency remitted from the foreign currency account of another non-resident  in Vietnam;
d. Receipt of foreign currency from lawful domestic revenue sources, comprising:
 Wages,  bonuses  and  allowances,  and  purchase  of foreign  currency  from  lawful  VND  sources;
  Other lawful revenue items in accordance with the law on foreign exchange control.

Account holders who are non-residents being individuals are allowed to use onshore accounts in foreign currencies for the following eight (8) disbursement transactions:
a. Making sales of foreign currency to authorized credit institutions;
b. Making  remittances  [and/or]  payments  for  current  transactions  and  for  capital  transactions  in  accordance with the law on foreign exchange control;
c. Conversions into other types of foreign currency in accordance with State Bank regulations;
d. Conversions into other foreign currency payment instruments;
e.  Making donations in accordance with law;
f. Withdrawing foreign currency cash;
g.  Making  remittances  overseas  or  remitting  into  the  foreign  currency  account  of  another  non-resident;
h. Making  remittances  [and/or]  payments for  transactions  for  which  domestic  payments  are  permitted to be in foreign currency in accordance with State Bank regulations on use of foreign  currency within the territory of Vietnam.

5. Use of foreign Vietnam dong accounts of non-residents being organizations or individuals, or residents being foreign individuals.  

Account holders who are non-residents being organizations or individuals, or residents being foreign individuals, are allowed  to use onshore accounts in Vietnamese Dong for the following  two (2) collection transactions:
a. Receipts from the sale of foreign currency to authorized credit institutions;
b. Receipts from lawful revenue sources in Vietnam comprising:
  Receipts from remittances for the supply of goods and services;
 Income being wages, bonuses, allowances and various types of expenses;
  Other lawful revenue sources in VND.

Account holders who are non-residents being organizations or individuals, or residents being foreign individuals are allowed to use onshore accounts in Vietnamese Dong for the following five (5) disbursement transactions:

a. Making payments or withdrawing cash in order to spend in Vietnam;
b. Making  remittances  [and/or]  payments  for  current  transactions  and  for  capital  transactions  in  accordance with the law on foreign exchange control;
c.  Making  donations  in  accordance  with  law  (in  the  case  of  non-residents  being  individuals  and residents being foreign individuals);
d. Disbursements to  purchase foreign  currency at authorized credit institutions  in  order to  remit it  overseas;
e. Disbursements for other purposes permitted by the law of Vietnam.
Circular No. 16 also discusses money transfer among foreign currencies accounts and Vietnamese Dong accounts of individuals and organizations. 
The use of foreign currencies accounts, Vietnamese Dong accounts for capital transactions, specialized foreign currencies accounts, and accounts in currencies of countries bordering Vietnam would be conducted in accordance with other related regulations issued by the SBV.

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