Chapter 5 Foreign Exchange Control

Foreign currency capital for indirect foreign investment must be exchanged into Vietnamese dong and any profits in doing must be converted into foreign currency for remittance abroad.

Within Viet Nam’s territory, except for certain specified cases, all transactions of offerings, payments, advertisements, quotations, price setting and other similar forms (e.g. conversion/ adjustment of prices of goods/ services or value of contracts and agreements) are not allowed to be conducted in foreign currency.

However, foreigners working in Viet Nam are still allowed to receive salaries, bonuses and allowances in foreign currency and may deposit these earnings in interest-bearing foreign currency accounts in Viet Nam. Also, the restrictions on foreign currency earnings, payments and exchange transactions do not apply to companies operating in EPZs.

Foreign investors may purchase foreign currency at prescribed banks in Viet Nam without a permit from the State Bank. Ordinary foreign currency accounts may be used to service current account transactions and regulatory approval is not required. However, a special, separate foreign currency bank account is needed to conduct certain capital transactions, including: offshore transfers of legal capital, profits and revenue; offshore medium and long term loan repayments; and foreign currency withdrawals and deposits.