Foreign indirect investment (FII) in Vietnam must be conducted in Vietnamese dong.
Such is provided in the State Bank of Vietnam’s Circular No. 05/2014/TT-NHNN of March 12, guiding the opening and use of FII accounts in order to conduct FII activities in Vietnam.
This new regulation is applicable to investors who do not reside in Vietnam.
Any indirect investment activities of foreign investors in Vietnam will be made in Vietnamese dong through an indirect investment account opened at a permitted bank.
In case foreign investors need to transfer capital, profits and other legitimate incomes from their FII activities, they may buy foreign currencies with Vietnamese dong through FII accounts at permitted credit institutions and remit them abroad.
The balance in indirect investment accounts of foreign investors cannot be converted into time deposits or savings deposits at credit institutions and foreign bank branches.
This new regulation will take effect on April 28, and replace Circular No. 03/2004/TT-NHNN of May 25, 2004.-