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The State Bank of Vietnam (SBV) is drafting a circular regulating the opening and use of Vietnamese dong-denominated accounts for foreign investors, in order to conduct foreign indirect investment activities in Vietnam.
The amended draft circular is expected to replace Circular 05/2014/TT-NHNN to implement solutions to upgrade the Vietnamese stock exchange according to the Government's direction and to meet the requirements of foreign exchange management for foreign indirect investment activities in Vietnam at present.
It will simplify procedures for opening indirect investment accounts of foreign investors, regulate the opening of online indirect investment accounts and allow foreign investors to open many indirect investment accounts corresponding to their granted securities transaction codes. According to the draft circular, foreign indirect investment activities in Vietnam are carried out in accordance with the country’s laws on investment securities and other relevant laws. All revenue and expenditure of transactions related to foreign indirect investment activities in Vietnam by foreign investors must be carried out through Vietnamese dong-denominated accounts, says the draft circular. The balance in indirect investment accounts of a foreign investor cannot be transferred to term deposits and savings deposits.- (VLLF)
