According to the provisions of Circular 06/2019/TT-NHNN of the State Bank dated June 26, 2019, guiding foreign exchange management for foreign direct investment activities in Vietnam, after issuance of Investment Registration Certificate and Enterprise Registration Certificate, foreign-invested enterprises need to open a direct investment capital account to make investment capital contributions, transfer investment capital, transfer profits and legal sources of revenue abroad, etc. Viet An Law Firm sends foreign investors a summary of regulations on direct investment capital accounts of foreign-invested enterprises in Vietnam as follows:
“Direct investment capital account” is a payment account in foreign currency or Vietnamese Dong opened by enterprises with foreign direct investment capital or foreign investors at licensed banks to carry out transactions. Transactions related to foreign direct investment activities in Vietnam.
Subjects opening and using direct investment capital accounts
Enterprises with foreign direct investment, including:
– Foreign investors participating in BCC contracts, foreign investors directly implementing PPP projects in the case of not establishing a project enterprise (hereinafter referred to as foreign investors directly implementing projects PPP).
Subjects of application of regulations on direct investment capital accounts
Regulations on investment capital contribution through direct investment capital account
Close direct investment capital account
– Enterprises with foreign investment (in the case of: Enterprises with foreign investors contributing capital, purchasing shares, stakes to the enterprise leading to foreign investors owning 51% or more of charter capital or more of the enterprise; Enterprises established after a split, merger, or consolidation resulting in foreign investors owning 51% or more of the enterprise’s charter capital) must close their investment capital account. Opened direct investment: Foreign investors who are non-residents own shares or capital contributions in this enterprise shall open an indirect investment capital account to carry out revenue and expenditure transactions according to regulations. Regulations on foreign exchange management for foreign indirect investment activities in Vietnam in the following cases:
– According to usage needs, enterprises close direct investment capital accounts when they no longer use direct investment capital accounts.
– Procedures for closing direct investment capital accounts comply with the regulations of the State Bank of Vietnam (hereinafter referred to as the State Bank) on opening and using payment accounts at payment service providers.
Income and expenditure transactions on direct investment capital account
Revenue and expenditure transactions on direct investment capital accounts in foreign currencies and accounts in Vietnam Dong are regulated in detail in Circular 06/2019/TT-NHNN.
All transactions are via bank transfer.
Transfer investment capital and investment projects through direct investment capital account
Payment of the transfer value of shares and capital contributions at enterprises with foreign direct investment is carried out as follows:
– Currency for valuation and payment of transfer value of investment capital and investment projects in foreign direct investment activities in Vietnam:
– In case of changing the authorized bank where the direct investment capital account is opened, the foreign investor must take the following steps:
Vietnamese investors in enterprises with foreign direct investment must also make capital contributions by transfer through a direct investment capital account.
This article is about direct investment capital accounts of foreign-invested enterprises. If Clients have any inquiries related to this topic, please contact us for the most effective support.
#3rd Floor, 125 Hoang Ngan, Hoang Ngan Plaza, Trung Hoa, Cau Giay, Hanoi, Vietnam