Outward Investment Forex Registration for Individuals in Vietnam

With the trend of globalization, outward foreign investment forex is opening up many interesting profit opportunities for individuals. However, to participate in this market in a legal and safe way, the determination of the transaction registration process is extremely necessary. Through the article below, Viet An Law will go in-depth and provide customers with outward investment forex registration for individuals in Vietnam.

What is the outward investment for forex registration?

Outward investment forex registration, specific for outward investment activities, is when the investor carries out the registration of the investor-related information, investment capital, investment capital account, which is opened at a licensed credit institution to conduct investment activities abroad, and the progress of transfer of capital in cash abroad with SBV in compliance with regulations in the Circular 12/2016/TT-NHNN.

Cases of outward investment for forex registration

• After being granted a certificate of outward investment registration by the competent authority and a certificate of outward investment registration of investors, it is still valid in accordance with the law
• After the investment activity has been approved by the competent authority of the country to receive investment or licensing, or after the investor has been granted documents proving the right to investment activities in the country receiving the investment, in accordance with the law of the country receiving the investment.
• After opening an investment capital account at the permitted credit institution and before making a foreign investment transfer

Outward investment forex registration for individuals in Vietnam

Dossier for a forex transaction

• The application form for the registration of outward investment-related forex transactions (Appendix 1)
• The copy, which originates from the master register or certified copy or copy, enclosed with the original for comparison, of Investment License or Certificate of outward investment or Certificate of the outward investment registration issued by the competent authorities of Vietnam.
• The copy in a foreign language and the translation into Vietnamese (with the investor’s confirmation of the accuracy of such copy and translation) of the written approval or the investment permit issued by the host country, or the document proving that the investment activities executed in the host country conform to the host country’s law.
• The original certificate of the investor’s investment capital account granted by the licensed credit institution, including account number and type of foreign currency
• The original certificate granted by the licensed credit institution to certify the amount transferred abroad by the investor before the investor obtains the Certificate of outward investment registration for the purpose of covering expenditures for activities related to the forming of such investor’s investment project abroad in compliance with laws, in cases where the investment capital is transferred abroad before having Certificate of outward investment registration granted
• The written explanation about the transfer of investment capital in VND to foreign countries in cases where the investment capital in VND is transferred abroad
• Power of Attorney for Viet An Law to submit dossiers

Outward investment forex registration procedure

Step 1. Prepare and submit dossiers

Investors send directly or by post 1 set of dossiers to the State Bank or submit online via the National Public Service Portal/State Bank Public Service (except in cases where the Investor is a credit institution).

• For investors being credit institutions: The State Bank confirms the registration of foreign exchange transactions related to foreign investment activities.
• For investors who are not credit institutions: State Bank branches in the provinces or cities where the investors who are not credit institutions have their headquarters, or where the investors who are individuals have registered permanent residence, or where other investors have registered their business, shall confirm.

Step 2. The competent authority reviews the dossiers

If the application is incomplete, within 5 days from the date of receipt of the application, the State Bank shall send a notice requesting the investor to supplement it.

Step 3: Receive registration results

Within 10 days of receiving a complete and valid dossier, the State Bank shall be responsible for confirming or refusing to confirm the foreign exchange transaction registration. If refused, there must be a written document stating the reasons.

Principles when registering for foreign exchange trading

• After being granted the Certificate of outward investment registration, the investor must open 01 (one) investment capital account in 01 (one) foreign currency suitable for the need to transfer investment capital abroad at 01 (one) licensed credit institution and register transactions with the State Bank.
• In case of transferring investment capital abroad in Vietnamese Dong, the investor is allowed to open and use simultaneously 01 (one) investment capital account in Vietnamese Dong and 01 (one) investment capital account in foreign currency at 01 (one) licensed credit institution and register transactions with the State Bank.
• Investors with many investment projects abroad must open separate investment capital accounts for each project.
• In case an outward investment project involves the participation of many investors, each investor must open a separate investment capital account to transfer capital abroad within the scope of the total investment capital and the capital contribution ratio according to the Certificate of outward investment registration issued by a competent authority of Vietnam.

Some notes about outward investment forex registration in Vietnam

Application form

• In case of direct submission at the State Bank or submission via postal service, the dossiers must be original.
• In case of submitting dossiers online via the Public Service Portal, electronic dossiers use digital signatures in accordance with the provisions of law on performing administrative procedures in the electronic environment. Accordingly, documents in electronic dossiers are electronic scans of the original, originals (PDF files), or declared on the State Bank Public Service Portal.
• Investors are responsible for the accuracy and honesty of the information stated in the foreign exchange transaction registration dossier related to outward investment activities.

Tax liability

Individuals investing abroad need to have a confirmation from the tax authority that they have fulfilled their tax obligations (usually no more than 03 months from the date of application submission). This is one of the important documents in the application for an Investment Registration Certificate.

Periodic reporting mode

After being licensed and investing, investors must comply with the regime of periodic reporting on the status of outward investment activities according to the provisions of law. This helps state management agencies grasp capital flows and ensure transparency.

Indirect investment form

Vietnamese individuals are only allowed to make indirect investments abroad in the form of participating in programs to reward shares issued abroad. Other forms of indirect investment are generally not allowed for individuals.

The above is the legal advice of Viet An Law on the outward investment forex registration for individuals in Vietnam. If you have any other problems related to foreign exchange transactions, please contact Viet An Law for specific advice.