Foreign indirect investment must be in VND

VGP - The State Bank of Viet Nam has issued Circular No.05/2014/TT directing the opening and use of accounts for foreign indirect investment capital, which must be in Viet Nam dong.Transactions related to the foreign indirect investment must be made via accounts for the investment at allowed banks.

March 14, 2014 3:57 PM GMT+7

Those accounts’ balance is not allowed to change into term deposits and savings at foreign credit institutions and bank branches.

If foreign investors want to open another account for their indirect investment capital at another authorized bank, they must close the current account and transfer all money to the new account.

They can carry out transactions by their new accounts after they complete the close and all transactions related to the previous account for their indirect investment capital.

The circular, which is to come into effect on April 28, also defines indirect investment activities which foreign investors can conduct in the country.

By Ngoc Van