On March 31th, 2021, the State Bank of Vietnam issued Circular No. 02/2021/TT-NHNN instructs foreign currency transactions on the foreign currency market by credit institutions licensed to conduct foreign exchange operations.

Accordingly, this Circular prescribes the type and scope of transactions permitted for transactions between credit institutions engaging in foreign exchange transactions:

1. Credit institutions are allowed to conduct spot transactions, period transactions, swap transactions, option transactions with other authorized credit institutions. 
2. Credit institutions are allowed to conduct spot transactions, period transactions, swap transactions, sale option transactions with economic organizations. 
3. Credit institutions are allowed to conduct spot transactions and period transactions with residents being other organizations and individuals.
4. Credit institutions are allowed to conduct spot transactions with non-residents being organizations and individuals and term sale foreign currency transactions with non-residents.
5. Credit institutions are allowed to conduct sale foreign currency transactions with non-residents being foreign investors owning Government bonds issued in Vietnam Dong in the domestic market to prevent exchange rate risk for an investor’s investment bond. 

This document takes effect from May 17, 2021.