Procedures for transferring investment capital abroad

Investors want performing projects in the foreign, they need converting the investment capital abroad. Although most of investor is performed the establishment of enterprises in foreign countries, it is not clear what legal procedures for transfer capital abroad need to be done. Viet An Law Firm guides in detail procedures for transferring investment capital abroad in this article.

Legal basis

• Law on Investment 2020;
• Decree No. 31/2021/ND-CP stipulating detail and guiding the implementation of a number of articles of the law on Investment;
• Circular 12/2016/TT-NHNN guiding about the foreign exchange management for offshore investment activities;

Conditions for transferring investment capital abroad to implement investment projects

• Have been granted an offshore Investment Registration Certificate, except for the case of converting an offshore capital during the investment preparation stage.
• Investment activities have been approved or licensed by the competent authority of the host country. Where the law of the host country does not provide for investment licensing or investment approval, the investor must have documents proving the right to invest in the host country;
• Have an offshore investment capital account.
• Register for foreign exchange transactions related to offshore investment activities.

Account for transferring investment capital abroad

All money transfer transactions from Vietnam to abroad and from abroad to Vietnam related to offshore investment activities must be done through the investment capital account specified in Clause 1 of this Article in accordance with the foreign exchange management law.

Dossier of registration for transferring investment capital abroad

Register for foreign exchange transactions related to offshore investment activities.

An application for registration of foreign exchange transactions related to offshore investment activities.

• A copy of an offshore Investment Registration Certificate;
• A copy of foreign language and Vietnamese translation of the Investment Certificate in foreign contries that is granted by a foreign competent authority for projects in the host country.
• An original of the confirmation written of the authorized credit organization on the opening of the investor’s investment capital account, clearly stating the account number and foreign currency.
• An original of the confirmation written of the authorized credit organization about the amount of money that the investor has remitted abroad before being granted an offshore Investment Registration Certificate to meet the expenses for formation activities for investment projects in foreign countries according to the provisions of law for cases that the investment capital has been transferred abroad before being granted the offshore Investment Registration Certificate.
• An written explanation about the demand of converting an offshore investment capital in Vietnamese Dong in the case of transferring the investment capital abroad in Vietnamese Dong.

Procedures for registration of foreign exchange transactions related to offshore investment activities

• Investors submit 01 set of dossier;
• Implementing agency: State Bank branch in the province or city where the investor is an organization has its head office or where the investor is an individual registered for permanent residence.
• Execution time:
• In case the dossier is incomplete and invalid, within 05 (five) working days from the date of receiving of the dossier, the State Bank shall send a written request to the investor to supplement the dossier.
• The State Bank is responsible for confirming or refusing the registration of foreign exchange transactions related to offshore investment activities within 10 (ten) working days from the date of receiving of the complete and valid dossier of investors.
• In case of refusal the registration of foreign exchange transactions related to offshore investment activities of investors, the State Bank shall issue a written notice and clearly stating the reasons.

Registration and notification of changes in foreign exchange transactions when transferring the investment capital abroad

Cases in which the procedures for registration of changes in foreign exchange transactions must be registered with the State Bank:

• Change of investors implementing offshore investment projects; change the investor’s name; change the investor’s address in case this change changes the competent agency to certify the registration of change of foreign exchange transactions related to offshore investment activities;
• Change the investment capital account in another foreign currency, change the place where the investment capital account is opened;
• Change related to the increase or decrease of the investor’s money invested capital (except for the case where profits are used to reinvest projects in foreign countries);
• Change the progress of the investor’s remittance of the investment capital abroad in case the amount of money transferred abroad in the period is more than the progress confirmed the registration by the State Bank.

In case of notifying the change of foreign exchange transactions in writing to the agency that confirms the registration of foreign exchange transactions related to offshore investment activities and the authorized credit organization where the investor opens the investment capital account:

• Change of address of the investor in case this change does not change the competent agency to confirm the registration of change of foreign exchange transactions related to offshore investment activities;
• Change the name of investment project in foreign countries;
• Change in the account number except for the case of change of foreign currencies and the bank opening the account must register the change of foreign exchange transactions.

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