Investment activities are always active in many countries around the world. In Vietnam, after the Covid-19 pandemic, many foreign investors actively seek investment opportunities in Vietnam. Please follow the following article of Lawyer X for more information on regulations on foreign direct investment capital accounts in Vietnam.
Legal grounds
Investment Law 2020
Regulations on opening a direct investment capital account
Regulations on opening a direct investment capital account
Must open a foreign currency direct investment capital account at 01 (one) authorized bank to conduct lawful foreign currency revenue and expenditure transactions related to foreign direct investment activities in Vietnam;
Corresponding to the type of foreign currency in which the capital contribution is made, only 01 (one) direct investment capital account in that foreign currency can be opened at 01 (one) authorized bank;
In case of investment in Vietnam dong, they may open 01 (one) direct investment capital account in Vietnam dong at the authorized bank where the foreign currency direct investment capital account has been opened to perform the following transactions: lawful revenue and expenditure transactions in Vietnam dong related to foreign direct investment activities in Vietnam;
In case a foreign investor participates in many BCC contracts or directly implements many PPP projects, the foreign investor must open a separate direct investment capital account corresponding to each BCC contract or PPP project.
Revenue and expenditure transactions by foreign currency direct investment capital account
Collected transactions:
Collection of remittances for direct investment capital contributions in foreign currencies of foreign investors, Vietnamese investors in foreign direct investment enterprises, foreign investors participating in BCC contracts, investors foreign investors directly implement PPP projects;
To collect and transfer the payment for the transfer value of investment capital or investment projects as prescribed in Article 10 of this Circular;
Collecting foreign currency transfers purchased from authorized credit institutions to transfer capital, profits and lawful revenues abroad according to the provisions of this Circular;
Remittances from foreign currency payment accounts opened at authorized banks of foreign direct investment enterprises, foreign investors participating in BCC contracts, and direct foreign investors PPP projects to transfer capital, profits and lawful revenues abroad to foreign investors;
Collection of foreign currency conversion to make investment capital contribution in case the currency of capital contribution is different from the currency of the opened direct investment capital account;
Collecting and transferring share capital surplus from the issuance of new shares to increase charter capital in foreign-invested enterprises;
Collecting foreign currency transfers earned from domestic sales of petroleum products (after fulfilling financial obligations and deducting expenses in Vietnam dong) in accordance with the law on oil and gas and Guarantee agreement and commitment of the Government (if any);
Transfer revenues related to foreign loans of enterprises with foreign direct investment capital in accordance with the law on foreign borrowing and repayment of enterprises, except for the case specified in Clause 3, Article 5. This circular;
Other legal revenues in foreign currencies related to foreign direct investment activities in Vietnam.
Payment transactions:
Expenses for transfer to a foreign currency payment account opened at an authorized bank of the foreign direct investment enterprise, foreign investor participating in BCC contract, foreign investor directly PPP projects, the operator of the oil and gas project in accordance with the law on oil and gas to carry out foreign direct investment activities in Vietnam;
Expenses for selling foreign currency to authorized organizations to transfer to the current account in Vietnam dong of the foreign direct investment enterprise, foreign investor participating in BCC contract, foreign investor. in addition to directly implementing PPP projects;
Expenses for the payment of the transfer value of investment capital or investment projects to the overseas transferor or the sale of foreign currencies to pay for the transfer of investment capital or investment projects to the transferor in the foreign country in Vietnamese dong according to the provisions of Article 10 of this Circular;
Expenses for transferring profits and lawful foreign currency incomes from foreign direct investment activities in Vietnam by foreign investors abroad;
Expenses for transferring foreign currency direct investment capital abroad of foreign investors in case of reduction of investment capital, termination, liquidation, termination of operation of investment projects, BCC contracts, contracts PPP in accordance with the law on investment;
Expenses for foreign currency conversion to transfer capital, profits and lawful revenues from outward direct investment activities in cases where the currency for transferring capital, profits and lawful revenues abroad is different from the currency. of the opened direct investment capital account;
Transfer payments related to foreign loans in foreign currencies of enterprises with foreign direct investment capital in accordance with the law on borrowing and paying foreign debts of enterprises, except for the case specified in Clause 1 of this Article. 3 Article 5 of this Circular;
Other legal payments in foreign currencies related to foreign direct investment activities in Vietnam.
Revenue and expenditure transactions on direct investment capital accounts in Vietnam dong
Collected transactions:
Collection of remittances for direct investment capital contribution in Vietnam dong of foreign investors, Vietnamese investors in foreign direct investment enterprises, foreign investors participating in BCC contracts, foreign direct investment in the implementation of PPP projects;
To collect and transfer the payment for the transfer value of investment capital or investment projects as prescribed in Article 10 of this Circular;
Remittance of profits divided in Vietnam dong of foreign investors, Vietnamese investors in foreign direct-invested enterprises, foreign investors participating in BCC contracts, foreign investors in addition to directly implementing PPP projects to increase capital and expand investment activities in Vietnam;
Remittances from payment accounts in Vietnamese Dong of enterprises with foreign direct investment capital, foreign investors participating in BCC contracts, foreign investors directly implementing PPP projects to transfer funds from foreign investors. capital, profits and lawful revenue sources abroad for foreign investors;
Collecting and transferring share capital surplus from the issuance of new shares to increase charter capital in foreign-invested enterprises;
Transfer receipts related to foreign loans in Vietnam dong of foreign direct-invested enterprises that are allowed to borrow foreign loans in Vietnam dong in accordance with the law on foreign borrowing and repayment of foreign direct investment enterprises. enterprise;
Other lawful revenues in Vietnam dong related to foreign direct investment activities in Vietnam.
Payment transactions:
Expenses for transferring money to a current account in Vietnam dong opened at an authorized bank of the foreign direct investment enterprise, foreign investor participating in BCC contract, foreign investor directly performing Executing PPP projects, the operator of the oil and gas project in accordance with the law on oil and gas to carry out foreign direct investment activities in Vietnam;
Expenses for the payment of the transfer value of investment capital or investment projects to the transferor in Vietnam or the purchase of foreign currency to pay for the transfer of investment capital or investment projects to the transferor in Vietnam. foreign countries as prescribed in Article 10 of this Circular;
Spending to buy foreign currency by transfer to transfer profits and lawful revenue sources in Vietnam dong to foreign investors abroad;
Paying for direct investment capital transfer in Vietnam dong to Vietnamese investors or buying foreign currency to transfer direct investment capital to foreign investors abroad in case of reduction of investment capital. liquidation and termination of operation of investment projects, BCC contracts, PPP contracts according to the provisions of the law on investment;
Transfer payments related to foreign loans in Vietnam dong of foreign direct-invested enterprises permitted to borrow foreign loans in Vietnam dong in accordance with the law on foreign borrowing and debt repayment;
Other legal expenditures in Vietnam Dong related to foreign direct investment activities in Vietnam.
Related article
- Papers to establish a foreign-invested company in Vietnam
- Service of setting up a foreign-invested company in Vietnam
Frequently asked questions
– Open a direct investment capital account at another licensed bank;
– Transfer the entire balance on the previously opened direct investment capital account to the new direct investment capital account, and then close the previously opened direct investment capital account;
– Direct investment capital accounts at other authorized banks can only be used to conduct revenue and expenditure transactions specified in Articles 6 and 7 of Circular 06/2019/TT-NHNN after completing all steps. as above.
Licensed banks include commercial banks and branches of foreign banks that are permitted to do business in and provide foreign exchange services in accordance with law.
Services of Lawyer X
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all personal information of clients Lawyer X will be 100% confidential.
Please contact us immediately if you have any questions about “Regulations on foreign direct investment capital accounts in Vietnam”
Contact LSX Lawfirm
Finally, we hope this article is useful for you to answer the question about: “Regulations on foreign direct investment capital accounts in Vietnam”. If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Conclusion: So the above is Regulations on foreign direct investment capital accounts in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
