Vietnam is a country that has seen an increase in foreign investment over the past few years. As a result, many people from different parts of the world have been moving to Vietnam for various reasons such as employment or starting a business. One of the most important things that people who are planning to relocate to Vietnam need to consider is where they are going to stay. For this reason, a tenancy contract is an essential document that anyone planning to rent a property in Vietnam should have. In this article, LSX legal firm would like to provide you with information concerning: “Tenancy contract using USD in Vietnamese territory”
Legal ground
- The Ordinance on Foreign Exchange 2005 amended by the Ordinance amending the Ordinance on Foreign Exchange 2013
- Circular 32/2013/TT-NHNN
Can you conclude a tenancy contract using USD within the Vietnamese territory?
Article 22 of the Ordinance on Foreign Exchange 2005, as amended by Clause 13, Article 1 of the Ordinance amending the Ordinance on Foreign Exchange 2013 provides for the regulation on limited use of foreign exchange as follows:
Article 22. Provision on limited use of foreign exchange
Within the territory of Vietnam, all transactions, payments, listings, advertisements, quotations, pricing, writing price on contracts, agreements, and other similar forms of residents and non- residents must not be effected in foreign exchange except for cases permitted in accordance with the regulation of the State Bank of Vietnam.
Accordingly, Article 4 of Circular 32/2013/TT-NHNN issued by the State Bank of Vietnam provides for cases allowed to use foreign exchange in the territory of Vietnam. However, the tenancy contract does not belong to the cases stated in the Circular.
Therefore, you can not use USD to conclude a tenancy contract in Vietnam. To enter into that type of contract, the parties must impose the payment rate in VND (Vietnam Dong).
Cases allowed to use foreign exchange according to the State Bank of Vietnam
As mentioned above, Article 4 of Circular 32/2013/TT-NHNN issued by the State Bank of Vietnam provides for cases allowed to use foreign exchange in the territory of Vietnam.
Article 4. Cases allowed using foreign exchange in the territory of Vietnam
1. Customs agencies, police, border guard and other state agencies at border gates of Vietnam and bonded warehouses are allowed to list in foreign currency and collect in foreign currency by transfer or cash from non-residents for various taxes, charges for exit and entry visa, charges for provision of services and other charges and fees as prescribed by law.
2. Banks and non-bank credit institutions and branches of foreign banks licensed to do business and provide foreign exchange services (hereinafter abbreviated to the authorized credit institutions) are allowed for transactions, payments, listing, advertisements, quotations, pricing, prices in contracts, agreements in foreign exchange within the scope of business and foreign exchange services permitted by the State Bank of Vietnam (SBV) in accordance with laws.
3. Other organizations may provide foreign exchange services may trade and list in foreign currencies within the scope of foreign exchange service provision permitted by the State Bank of Vietnam in accordance with law.
4. Residents being entities with legal person status are allowed to transfer internal capital in foreign currency between their accounts with accounts of their dependent units that have no legal person status and vice versa.
5. Residents are allowed to contribute capital in foreign currency by transfer in order to perform foreign investment projects in Vietnam.
6. Residents performing contracts of import and export entrustment shall comply with the following provision:
a) Residents entrusted with import are allowed to write price in contracts of import entrustment in foreign currency and receive payments in foreign currency by transfer for the value of import contract from the import-entrusting party;
b) Residents entrusted with export are allowed to write price in contracts of export entrustment in foreign currency and pay in foreign currency by transfer for the value of export contract for the export-entrusting party.
7. Residents being domestic and foreign contractors shall comply with the following provision:
a) For costs outside Vietnam involving the implementation of bidding package through international bid as prescribed in the Law on bid: Contractors are allowed to bid in foreign currency and receive payments in foreign currency by transfer from investors or principal contractors for payment and remittance to foreign countries.
b) For implementation of bidding package as prescribed by law on oil and gas: Contractors are allowed to bid in foreign currency and receive payments in foreign currency by transfer from investors or principal contractors for payment and remittance to foreign countries.
8. Residents being insurers shall comply with the following provision:
a) Quoting, valuing, recording of insurance service prices in a contract by foreign currency and receipt of payment in foreign currency by transfer from the insurance purchaser for goods and services subject to overseas reinsurance;
b) Cases of arising damages for part re-insured abroad, residents being the insurance-buying organizations shall be allowed to receive amounts for compensation in foreign currency by transfer from foreign reinsurers through the insurers so as to pay costs for overseas damage remedy.
9. Residents being organizations trading in free-duty goods are allowed to list the prices of goods in foreign currency and receive payments in foreign currency by transfer or cash from provision of goods. Foreign currencies used in transactions at free-duty stores shall comply with legislations on sale of duty-free goods.
10. Residents being organizations providing services in isolated areas at international border gates, organizations trading in bonded warehouses are allowed for listing, quotation, pricing, prices in contracts in foreign currency and receipt of payments in foreign currency by transfer or cash from provision of goods and services.
11. Residents being organizations that act as agents for foreign transportation firms on the basis of agent contracts signed by two parties shall comply with the following provision:
a) They are allowed to make quotations, fix prices and write prices in contract in foreign currency, on behalf of foreign transportation firms, for freights of international goods. Payment must be performed in Vietnam dong;
b) They are allowed to provide payment services on behalf of their customers in foreign currency by transfer so as to pay goods and services at international sea ports, in isolated areas at international airports;
c) They are allowed to provide payment services in foreign currency by cash, under authorization of foreign ship firms, so as to pay salaries, bonus, and allowances for non-residents.
12. Residents being exporting and processing enterprises shall comply with the following provision:
a) They are allowed for prices in contracts in foreign currency and payment in foreign currency by transfer when they buy goods from domestic market for production, processing, reprocessing, and assembling of export goods or for export, except for goods banned export. Domestic enterprises are allowed to make quotations, fix prices in foreign currency or receive payments in foreign currency by transfer when they sell goods for exporting and processing enterprises;
b) Quoting, valuing, price recording in foreign currency contracts and payment and receipt of payment in foreign currency by wire transfer with other processing enterprises.
13. Residents being organizations trading in the domains of air transport, hotel, and tourist are allowed for listing, advertisement of prices of goods and services in Vietnam dong and equivalent foreign currency on websites, specialized-line publications (excluding menu and service price table) that only use foreign language.
14. Residents and non-residents being organizations are allowed to make agreements and pay salaries, bonus and allowances in labor contracts in foreign currency by transfer or cash to non-residents and residents who are foreigners working in such organizations.
15. Non-residents being diplomatic agencies, consular agencies are allowed for listing in foreign currency and collection of charges for exit and entry visa, other charges and fees in foreign currency by transfer or cash.
16. Non-residents shall comply with the following provision:
a) They are allowed to transfer in foreign currency for other non-residents;
b) They are allowed for prices in contracts in foreign currency and payment of export goods and services in foreign currency by transfer for residents. Residents are allowed to make quotations, fix prices in foreign currency or receive payments in foreign currency by transfer when they supply goods and services for non-residents.
17. For cases related to security, defense, oil and gas, and other necessary cases, organizations are allowed to use foreign exchange in the territory of Vietnam after being considered and approved by the State Bank of Vietnam (in writing) based on the actual situation and necessary nature of each case according to the dossiers, order, and procedures specified in Article 4a of this Circular.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants, The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
This article contains information about “Tenancy contract using USD in Vietnamese territory”. In recent years, we have supplied effective legal advice to businesses and individuals at reasonable prices and with efficient results. We always update and keep our operations and services in line with the law by adhering to legal principles. If you need any further information from the firm’s solicitors, please contact LSX Law firm: +84846175333 or Email: [email protected]
See more
Application for temporary foreigners residence card in Vietnam
Process of terminating the tenancy agreement in Vietnam
What to do when landlord unilaterally terminate tenancy contract in Vietnam?
Frequently asked questions
According to Article 129 of the Law on Housing 2014, the lessor and the lessee can agree on the lease term, the rental price, and the form of payment.
– Firstly,the lessor does not repair the house when it is seriously damaged;
– Secondly, the lessor increases the rents unreasonably or increases the rents without notification to the lessee;
– Thirdly, the right to enjoyment of the house is restricted by interests of a third party.
Foreigners are allowed to own houses in Vietnam, but some certain restrictions and regulations must be followed such as foreigners can only own residential properties and the leasehold of the property must not exceed 50 years, the ownership of the property must not exceed 30% of the units in any given building, or exceed 250 houses in any administrative unit,…
Conclusion: So the above is Tenancy contract using USD in Vietnamese territory. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
