Important notes when trading foreign currencies in Vietnam. Along with the development of the market economy; the demand for foreign currency transactions of individuals and organizations is increasing daily. Here are some important notes when dealing with foreign currencies in Vietnam. Let us learn about this topic with LSX law firm as follow:
Transactions in foreign currency in Vietnam
According to the Law on State Bank of Vietnam 2010; foreign currency is the currency of another country or the common currency of Europe; and other common currency used in international and regional payments.
In addition, the 2005 Foreign Exchange Ordinance amending and supplementing 2013 stipulates valuable papers in foreign currencies; including Government bonds, corporate bonds, promissory notes, stocks, and other useful documents. Foreign currency cash includes paper money, metal money.
03 important notes when trading foreign currencies in Vietnam
Important notes when trading foreign currencies: restrictions on the use of foreign exchange in Vietnam
This is an important note that everyone should be aware of. In principle, in the territory of Vietnam, all transactions, payments, listings; and advertisements cannot be made in foreign exchange except in the following cases:
– Transactions with credit institutions
– Cases of payment through intermediaries include collection, entrustment, agents
– Other necessary cases permitted by the Prime Minister.
Credit institutions permitted to conduct foreign exchange activities, including banks, non-bank credit institutions; and foreign bank branches, may conduct business and provide foreign exchange services. (Article 2 of Circular 15/2015/TT-NHNN). If you don’t know Conditions for issuance of a credit institution’s license in Vietnam, LSX Law firm is happy to help you.
Detailed regulations in the Ordinance on Foreign Exchange 2005, amended and supplemented in 2013.
Places to buy and sell foreign currency
Article 3 of Circular 20/2011/TT-NHNN stipulating the purchase and sale of foreign currency in cash by individuals with authorized credit institutions clearly states that entitled to:
– Buying and selling foreign currency in cash at places where foreign currency sales are permitted within the operating network of authorized credit institutions.
– Selling at foreign currency exchange agents of authorized credit institutions.
Accordingly, the authorized credit institutions must announce the list of places for buying; and selling foreign currency in cash of the whole system on the website of such approved credit institutions.
Important notes when trading foreign currencies: Only buy and sell foreign currency 100 USD/person/day
Article 5 of Circular 20/2011/TT-NHNN stipulates that Vietnamese citizens; and authorized credit institutions are only allowed to trade in foreign currency at the rate of 100 USD/person/day. This limit also applies to children sharing a passport with one parent.
In addition, Vietnamese citizens are only entitled to purchase other foreign currencies of equivalent value during their stay abroad for 10 (ten) days.
Not stopping there, after relying on their ability to self-balance foreign currency and cash sources, authorized credit institutions can oversell to meet foreign currency needs for food and pocket money. , money for travel abroad related to the following purposes:
- Firstly, studying and getting medical treatment abroad
- Secondly, business trip, travel, visit abroad
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Related questions
Credit institution is an enterprise that carries out one, several or all banking activities. In which banking activities are as the regular business and provision of one or several of the following operations: receiving deposits, providing credit and providing payment services via accounts. Credit institutions include banks, non-bank credit institutions, microfinance institutions and people’s credit funds.
Foreign currency is the currency of another country, territory or common currency and other common currency used in international and regional payments.
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