Register for forex transaction in Vietnam

Registration for foreign exchange transactions is an important procedure in offshore investment activities of investors. This procedure has conducted with the State Bank of Vietnam (SBV) of information about the investor, investment capital, investment capital account opened at an authorized credit institution in order to conduct foreign exchange transactions. investment activities abroad and the progress of remittance of investment capital in cash abroad.

From August 13, 2016, the registration of foreign exchange transactions related to offshore investment activities shall comply with the provisions of Circular 12/2016/TT-NHNN, as amended and supplemented by Circular 31/2018/TT-NHNN and Circular 24/2022/TT-NHNN.

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

• After having certificate of offshore investment registration granted by a competent authority and this certificate is still valid in accordance with law;
• After the investment activities have been approved or licensed by a competent authority in the host country or the investor has obtained a document proving that the investment activities are conformable with the host country’s law;
• After the investor has opened an investment capital account at a licensed credit institution as prescribed but before he/she transfers investment capital abroad.

Subjects of application

Investors (other entities) involved in offshore investment activities from Vietnam.

Principles of opening and using investment capital accounts

• After having certificate of offshore investment registration granted, the investor must open 01 (one) investment capital account in 01 (one) type of foreign currencies in conformity with the investor’s demand on transfer of investment capital abroad at 01 (one) licensed credit institution and carry out the registration of offshore investment-related forex transactions with SBV as regulated.
• In case the capital is transferred to foreign country in VND, the investor is allowed to open and use 01(one) investment capital account in VND and 01(one) investment capital account in foreign currency at the same time at 01(one) licensed credit institution and carry out the registration of offshore investment-related forex transactions with SBV as regulated.
• The investor must separately open investment capital account for each investment project abroad.
• If an overseas project is invested by several investors, each investor must open his/her own investment capital account to transfer his/her investments abroad within the scope of total investment capital and in conformity with his/her percentage of contribution as mentioned in the Certificate of offshore investment registration issued by Vietnam’s competent authority.
• All collections and payments regulation on collections and payments made on investment capital account in foreign currency and VND in Circular 12/2016/TT-NHNN must be made through the investment capital account after having certificate of the registration of forex transactions granted by SBV.
• Procedures for opening and closing investment capital accounts shall comply with the SBV’s regulations on opening and use of payment accounts at payment service providers.

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

A dossier of registration for foreign exchange transactions related to forex transactions includes:

• Application for registration of foreign exchange transactions related to offshore investment activities (using the form in Annex 01 issued with Circular 12/2016/TT-NHNN).
• The copy which is originated from the master register or certified copy or copy, enclosed with the original for comparison, of Investment License or Certificate of offshore investment or Certificate of the offshore investment registration issued by competent authorities of Vietnam. The person making the comparison of the copy with the original thereof, if any, shall verify the accuracy of the copy with its origina.
• The copy in 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 are conformable with 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 offshore 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 offshore 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 to confirm the registration of outward investment-related forex transactions

• The registration of outward investment-related forex transactions and the registration of changes thereof made by the investor that is a credit institution shall be confirmed by SBV.
• The registration of offshore investment-related forex transactions and the registration of changes thereof made by the investor that is not a credit institution shall be confirmed by SBV’s branch in a province or city where the main office of the investor that is not a credit institution is located, or the individual investor’s permanent residence or other investor’s business is registered.

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

• Investors send directly or by post 01 (one) set of application for registration of foreign exchange transactions related to offshore investment activities according to regulations to the SBV.
• In case the dossier is incomplete and invalid, within 05 (five) working days from the date of receipt of the dossier, the SBV shall send a written request to the investor to supplement the dossier.
• The SBV is responsible for confirming or refusing to confirm the registration of foreign exchange transactions related to offshore investment activities within 10 (ten) working days from the date of receipt of complete and valid documents.
• In case of refusal to confirm the registration of foreign exchange transactions related to the investor’s offshore investment activities, the SBV shall issue a written notice clearly stating the reasons therefor.

Registration service for foreign exchange transactions of Viet An Law Firm

• Advising clients on conditions, documents, procedures for granting/adjusting/terminating certificates of offshore investment registration;
• Drafting legal documents for enterprises related to the content of granting/adjusting/terminating certificates of offshore investment registration according to information/requests provided by enterprises;
• Authorized representative of the client to carry out the procedures for granting/adjusting/terminating the certificate of offshore investment registration at the competent state agencies;
• Carry out procedures related to registration/notification of changes in foreign exchange transactions related to offshore investment activities;
• Monitor the processing of dossiers by competent state agencies, explain to state agencies on issues related to dossiers for grant/adjustment/termination of offshore investment registration certificates. and dossiers of registration/notification of changes in foreign exchange transactions related to offshore investment activities.

For any difficulties or problems related to the registration procedure for foreign exchange transactions, please contact Viet An Law Firm for the fastest support!