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Open direct investment capital accounts are an issue that foreign investors need to understand clearly when investing in Vietnam. This account helps manage investment cash flow, perform payment transactions and ensure compliance with foreign exchange management regulations. At the same time, it helps foreign investors deploy investment activities smoothly. In the article below, Long Phan will provide customers with detailed information as well as procedures for opening a direct investment capital account.
According to Clause 5, Article 3 of Circular 06/2019/TT-NHNN, direct investment capital account is understood as a payment account in foreign currency or Vietnamese dong issued by an enterprise with foreign direct investment capital. Foreign investors open at licensed banks to carry out transactions related to foreign direct investment activities in Vietnam according to regulations.
According to the provisions of Clause 1, Article 5 of Circular 06/2019/TT-NHNN, subjects opening and using direct investment capital accounts include the following cases:
Case 1: Enterprises with foreign direct investment prescribed in Clause 2, Article 3 of Circular 06/2019/TT-NHNN. Specifically, they are:
Case 2: Foreign investors participating in BCC contracts, foreign investors directly implementing PPP projects in the case of not establishing a project enterprise (hereinafter referred to as foreign investors directly implementing PPP projects).
Thus, foreign investors who fall into one of the above cases are required to open a direct investment capital account to serve investment activities in Vietnam. In cases that do not fall into the above cases, foreign investors do not need to open a direct investment capital account.
According to Clause 2, Article 5, Circular 06/2019/TT-NHNN, regulations on opening and using direct investment capital accounts for foreign investors are as follows:
Subjects specified in Clause 1, Article 5 of Circular 06/2019/TT-NHNN (enterprises with foreign direct investment and foreign investors participating in BCC contracts or PPP projects) must comply with the regulations. Requirements after opening an account:
If investing in Vietnamese Dong, investors are allowed to open a direct investment capital account in Vietnamese Dong at the bank that has opened a direct investment capital account in foreign currency to carry out related legal revenue and expenditure transactions.
If a foreign investor participates in multiple business cooperation contracts (BCC) or implements multiple PPP projects, a separate direct investment capital account must be opened for each contract or project.
In case an enterprise with foreign direct investment borrows in a foreign currency that does not correspond to the foreign currency on its direct investment capital account, the enterprise has the right to:
If it is necessary to change banks, investors should take the following steps:
Enterprises specified in Point b and c Clause 2 Article 3 Circular 06/2019/TT-NHNN must close the opened direct investment capital account; Foreign investors who are non-residents own shares or capital contributions in this enterprise shall open an indirect investment capital account to carry out revenue and expenditure transactions according to regulations on foreign exchange management. For foreign indirect investment activities in Vietnam in the following cases:
To optimally support investors, Long Phan provides in-depth consulting services to bring convenience and speed to customers in the process of opening and using direct investment capital accounts.
Long Phan’s consulting services on opening and managing direct investment capital accounts include:
Opening direct investment capital accounts is an important step for foreign investors to carry out financial transactions related to investment activities in Vietnam legally and effectively. Long Phan commits to accompanying customers in the process of opening and using direct investment capital accounts. With a team of experienced experts, we will assist you in completing the procedure quickly and according to regulations. Contact the hotline immediately 0906735386 for detailed advice and the best support for your investment project in Vietnam.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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