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- 04 / 08 / 2019 -
Guidance on foreign exchange management for foreign direct investment in Vietnam

On June 26, 2019, the State Bank issued Circular No. 06/2019/TT-NHNN providing guidelines on foreign exchange management for foreign direct investment activities into Vietnam effective on 06 September 9, 2019.
Accordingly, Circular No. 06/2019 / TT-NHNN has the following outstanding contents:
– Foreign investors and Vietnamese investors are entitled to make investment capital contribution in foreign currencies and Vietnam dong according to the investor’s capital contribution level in the investment registration certificate, establishment and operation license. in accordance with specialized laws (for enterprises with foreign direct investment established and operating under specialized laws), Notice of satisfaction of conditions for capital contribution, share purchase, repurchase capital contribution of foreign investors, PPP contracts signed with competent state agencies, other documents proving the capital contribution of foreign investors in accordance with the provisions of law.
– Enterprises with foreign direct investment, foreign investors participating in BCC contracts, implementing PPP projects in case of not establishing project enterprises must open a direct investment capital account in foreign currency in 01 (one) bank is allowed to carry out legal transactions of collection and payment in foreign currencies related to foreign direct investment activities in Vietnam.
– In case of carrying out foreign loans, the borrowed money does not correspond to the currency that the foreign direct invested enterprise uses to open the direct investment capital account, the invested enterprise. Foreign direct investors are allowed to open more loan accounts, repay foreign loans with the currency borrowed at an authorized bank where the direct investment capital account has been opened to make lawful collection and spending transactions related to foreign loans in accordance with the law on foreign loans and debt repayment of enterprises.
Thus, Circular No. 06/2019/TT-NHNN provided detailed instructions on the investment capital contribution, the method of capital contribution of foreign investors when investing in Vietnam.

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