What are the regulations on transferring money from foreigners to people in Vietnam? What procedures need to do for people who are overseas to transfer money to Vietnamese people? Let us learn about this topic with LSX Law firm below:
Ordinance on Foreign Exchange 2005
Ordinance amending the Ordinance on Foreign Exchange 2013
Types of money transfer from foreigners to people in Vietnam
There are 2 ways to transfer money as follows:
Firstly, One-way money transfer to Vietnam to help family members use personal expenses not related to payment for export and import of goods and services.
Secondly, Remittance to Vietnam according to capital transactions for direct business investment.
Regulations on transferring money from foreigners to people in Vietnam
Regulations on transferring money from foreigners to people in Vietnam in way 1
According to Article 8, the Ordinance on Foreign Exchange provides as follows:
One-way money transfer in the following cases:
Firstly, a foreign currency earned by residents being individuals in Vietnam from one-way money transfers is used to store, carry, and deposit into a foreign currency account opened at an authorized credit institution. Alternatively, sold to an authorized credit institution; if they are Vietnamese citizens, they may deposit their savings in foreign currency at an authorized credit institution.
Secondly, residents can buy, transfer and bring foreign currencies abroad to serve their legal needs.
In addition, non-residents and residents are foreigners who have foreign currency on their accounts transferred abroad; in case there is a lawful source of income in Vietnam dong; they may buy foreign currency to remit abroad.”
Who are the people in Vietnam?
Residents are organizations and individuals that fall into the following categories:
first, Vietnamese citizens residing in Vietnam; Vietnamese citizens residing abroad for less than 12 months also; Vietnamese citizens working at organizations specified at Points d and dd of this Clause and individuals accompanying them;
Moreover, Vietnamese citizens travel, study, get medical treatment and visit abroad;
Besides, foreigners are allowed to reside in Vietnam for 12 months or more. For foreigners studying, getting medical treatment, traveling or working for diplomatic missions; consular offices, representative offices of international organizations in Vietnam; representative offices of foreign organizations in Vietnam; regardless of the time limit, are cases that are not subject to residents.”
So, open a foreign currency account at a credit institution authorized to provide foreign exchange in Vietnam and receive a money transfer from the foreigner’s account to Vietnam.
Regulations on transferring money from foreigners to people in Vietnam in way 2
Suppose you use the money for business purposes. In that case, you can resell the foreign currency to a credit institution, use a Vietnamese account if you are a business person. If the two parties cooperate to open a company, they must do so, following capital transactions. Accordingly, foreigners must open a foreign currency account at an authorized credit institution such as a bank; then transfer money to this account to conduct business through this account under Article 11 of the Ordinance on Foreign Exchange.
Article 11. Direct investment
Foreign currency investment capital transfer into Vietnam, principal investment capital, profits; interest payments, and lawful revenues abroad must through a foreign currency account opened at a credit institution.
In addition, legal revenue in Vietnam dong shall be converted into foreign currency to be remitted abroad through an authorized credit institution.
Hope this article is helpful for you!
Foreign exchange is an asset or property right that can be valued and converted into foreign currency accepted by the international community as a means of international payment that a country uses in international transactions, including: foreign currency and foreign currency. non-foreign currency international payment methods in forms such as deposits at foreign banks, credit instruments, bills of exchange, money orders, cheques… bonds, securities denominated in foreign currencies …
Violations against regulations on foreign exchange activities 2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following violations: a) Buying and selling foreign currencies between individuals with a value of between US$1,000 and US$10,000 (or other foreign currencies of equivalent value); purchase and sale of foreign currencies between individuals with a value of less than US$1,000 (or other foreign currencies of equivalent value) in case of recidivism or repeated violations.