Provisions of Opening and Using Direct Investment Accounts
Thứ ba - 29/09/2020 09:29Foreign direct investment in Vietnam is a form of investment that individuals and legal entities invest by their long-term assets. Simultaneously, individuals and legal entities will have the right to manage the foreign-invested production and business establishment.
Normally, the foreign direct investment project in Viet Nam go through 03 basic steps:
Normally, the foreign direct investment project in Viet Nam go through 03 basic steps:
- Asking for investment decision[1]
- Investment registration or apply for investment registration certificate[2]
- Enterprise registration.
According to regulation at Article 4.3 of Circular 06/2019/TT-NHNN, the monetary capital contribution of foreign or Vietnamese investors must be carried out by transferring to the direct investment account.
Enterprises with foreign direct investment capital and foreign investors participate in BCC or directly implement PPP projects without establishing project enterprises (hereinafter referred to as foreign investors directly implementing PPP projects) must open a foreign currency account at one (01) authorized bank to receive and make payments in that currency during the process of foreign direct investment in Vietnam (Article 5.1 and Article 5.2.a of Circular 06/2019/TT-NHNN). The authorized bank includes commercial banks, foreign banks’ branches that are permitted for the foreign exchange business and supply of foreign exchange services.
An investor must correctly contribute to the amount of capital in the Investment Registration Certificate and can open only 01 (one) direct investment account for a selected foreign currency to carry out the contribution of capital investment.
In case the foreign investor participates in several BCCs or directly implements several PPP projects, such foreign investor shall open a direct investment account for each BCC or PPP project.[3]
If the currency of an overseas loan is different from the currency of the direct investment account of FDI enterprise, it may open other direct investment accounts of the loan currency at authorized banks where they have already held direct investment accounts in order to perform their receipt and expenditure transactions regarding foreign loans;[4]
In case the authorized bank is changed, the foreign direct investment enterprises, foreign investment join in the business cooperation contracts must open another direct investment account at another authorized bank. Then, the account holder must close their opened direct investment capital accounts and transfer the entire balance on this account to the new account. [5]
Depending on the type of currency chosen to transfer into the direct investment account. Corresponding to each currency such as Vietnam Dong or foreign currency, investors must carry out different receipt and expenditure transactions on the direct investment account specified in Articles 7 and 8 of Circular 06/2019/TT-NHNN to ensure the control of the money in and out of investors.
Enterprises with foreign direct investment capital and foreign investors participate in BCC or directly implement PPP projects without establishing project enterprises (hereinafter referred to as foreign investors directly implementing PPP projects) must open a foreign currency account at one (01) authorized bank to receive and make payments in that currency during the process of foreign direct investment in Vietnam (Article 5.1 and Article 5.2.a of Circular 06/2019/TT-NHNN). The authorized bank includes commercial banks, foreign banks’ branches that are permitted for the foreign exchange business and supply of foreign exchange services.
An investor must correctly contribute to the amount of capital in the Investment Registration Certificate and can open only 01 (one) direct investment account for a selected foreign currency to carry out the contribution of capital investment.
In case the foreign investor participates in several BCCs or directly implements several PPP projects, such foreign investor shall open a direct investment account for each BCC or PPP project.[3]
If the currency of an overseas loan is different from the currency of the direct investment account of FDI enterprise, it may open other direct investment accounts of the loan currency at authorized banks where they have already held direct investment accounts in order to perform their receipt and expenditure transactions regarding foreign loans;[4]
In case the authorized bank is changed, the foreign direct investment enterprises, foreign investment join in the business cooperation contracts must open another direct investment account at another authorized bank. Then, the account holder must close their opened direct investment capital accounts and transfer the entire balance on this account to the new account. [5]
Depending on the type of currency chosen to transfer into the direct investment account. Corresponding to each currency such as Vietnam Dong or foreign currency, investors must carry out different receipt and expenditure transactions on the direct investment account specified in Articles 7 and 8 of Circular 06/2019/TT-NHNN to ensure the control of the money in and out of investors.
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