In accordance with the Circular No. 19/2014/TT-NHNN issued by the State Bank of Vietnam on August 11, 2014 guiding the foreign exchange management of foreign direct investment in Vietnam.
To conduct foreign direct investment activities in Vietnam, a foreign-invested enterprise or foreign party to a business cooperation contract may open a foreign-currency, Vietnam-dong direct investment capital account at 1 (one) licensed bank to conduct collection and payment transactions.
In case a foreign-invested enterprise or foreign party to a business cooperation contract needs to open a direct investment capital account at another licensed bank, it shall close the current direct investment capital account and transfer the whole balance on such account to the new account. Foreign-invested enterprises and foreign parties to business cooperation contracts may conduct collection and payment transactions on newly opened direct investment capital accounts only after closing and liquidating previously opened ones.
From September 25, 2014, foreign-invested enterprises and foreign parties to business cooperation contracts shall convert special-use foreign-currency deposit accounts into foreign-currency direct investment capital accounts. The conversion of special-use foreign-currency deposit accounts into foreign-currency direct investment capital accounts of foreign-invested enterprises and foreign parties to business cooperation contracts shall be conducted within 6 months.
After 6 months from the effective date of this Circular, foreign-invested enterprises and foreign parties to business cooperation contracts may no longer use their special-use foreign-currency deposit accounts for conducting direct investment activities in Vietnam.
This Circular takes effect on September 25, 2014.
