We wish to establish an enterprise with foreign direct investment (FDI) in Vietnam, what should we do to open and use bank accounts in Vietnam?
As prescribed by Vietnam’s laws, after obtaining an investment certificate, your FDI enterprise is required to open an investment capital account.
As a foreign-invested enterprise, yours is required to open a foreign-currency direct investment capital account at a licensed credit institution to conduct collection and payment transactions related to your direct investment activities in Vietnam.
Such an account may be used for collecting:
• Foreign-currency contributions by investors for direct investment;
• Foreign-currency amounts withdrawn from short-, medium- and long-term domestic and foreign loans of your enterprise;
• Paid transfer value of investment capital and projects;
• Foreign-currency amounts from foreign-currency payment accounts at licensed banks; and,
• Other lawful foreign-currency revenues earned from FDI activities in Vietnam,
This account may also be used for the payment of:
• Principals, interests and charges of short-, medium- and long-term domestic and foreign loans in foreign currencies;
• Expenses for transfer of foreign-currency amounts into foreign-currency payment accounts at licensed banks;
• Expenses for sale of foreign-currency amounts to licensed credit institutions for transfer into Vietnam-dong payment accounts;
• Transfer value of investment capital and projects;
• Expenses for overseas remittance of foreign-currency profits and lawful revenues earned from FDI activities in Vietnam;
• Expenses for the transfer of foreign-currency direct investment capital out of Vietnam in case of dissolution or termination of operation of your enterprise, transfer of investment capital and projects, reduction of investment capital, or completion, liquidation or termination of operation of investment projects in accordance with Vietnam’s investment law; and,
• Other lawful foreign-currency expenses for FDI activities in Vietnam.
If making Vietnam-dong investments, your FDI enterprise may open a Vietnam-dong direct investment capital account at a licensed credit institution where your enterprise has opened its foreign-currency direct investment capital account under the aforesaid regulations to conduct lawful Vietnam-dong collection and payment transactions related to FDI activities in Vietnam.
Such a Vietnam-dong account may be used for collecting:
• Vietnam-dong contributions by investors for direct investment;
• After-tax profits divided in Vietnam dong for reinvestment in Vietnam;
• Amounts withdrawn from Vietnam-dong short-, medium- and long-term domestic loans of your enterprise for investment in Vietnam;
• Amounts withdrawn from Vietnam-dong foreign loans of your enterprise, which is allowed to borrow foreign loans in Vietnam dong under the current regulations on borrowing and repayment of foreign loans by enterprises without governmental guarantee;
• Paid transfer value of investment capital and projects; and,
• Account transfers from your enterprise’s Vietnam-dong payment account at a licensed bank.
This account may also be used for the payment of:
• Account transfers to other Vietnam-dong payment accounts;
• Expenses for the transfer of Vietnam-dong profits to investors;
• Principals, interests and charges of short-, medium- and long-term Vietnam-dong domestic loans for implementation of investment projects;
• Principals, interests and charges of Vietnam-dong foreign loans of your enterprise, which is allowed to borrow foreign loans in Vietnam dong under the current regulations on borrowing and repayment of foreign loans by enterprises without governmental guarantee;
• Transfer value of investment capital and projects;
• Expenses for the reimbursement of Vietnam-dong investment capital to investors in case of dissolution or termination of operation of your enterprise, transfer of investment capital and projects, reduction of investment capital, or completion, liquidation or termination of operation of investment projects in accordance with Vietnam’s investment law.
If wishing to open a direct investment capital account at another licensed bank, your enterprise will have to close the previous account and transfer the whole balance of the old account to the new account. Procedures for opening and closing direct investment capital accounts must comply with regulations of licensed banks.
Your enterprise may only conduct collection and payment transactions via the new direct investment capital account after closing and finalizing the previous account.- (VLLF)
