License To Open And Operate Foreign Currency Accounts Overseas

00: All enterprise. Subjects who wish to open foreign currency accounts overseas.

• Vietnamese economic organizations licensed to conduct international business activities in the fields of aviation, navigation, post, insurance, tourism, labor export, and to contract overseas projects that require the opening of overseas accounts to make regular revenue-expenditure items, deposits, custodies to guarantee the performance of international bidding contracts; clearance payment or implement international treaties and agreements already signed with foreign countries shall have to send their dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (Department for Management of Foreign Exchange). The dossiers shall include:

• Vietnamese economic organizations and foreign-invested enterprises have the demand to open overseas foreign currency accounts in order to make medium- and long-term borrowings valued at 5.000.000 (five million) USD or more or other foreign currency of equivalent value. All these borrowings must be accepted for registration by the State Bank and the lending party, requests the opening of foreign currency accounts in order to manage the sources of borrowed capital and monitor the debt repayment. The organizations shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Management of Foreign Exchange). Such a dossier shall include:

• Economic organizations permitted by the competent bodies of Vietnam to open overseas branches or representative offices shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Management of Foreign Exchanges). Such a dossier shall include:

• Credit institutions wishing to open and use overseas foreign currency accounts to effect the foreign exchange business operation abroad shall have to send the dossiers of application for the license to open and use the overseas foreign currency accounts to the State Bank (the Department for Banks and Non-Bank Credit Institutions). Such a dossier shall include:
  1. The application for the license to open and use overseas foreign currency accounts;
  2. The notarized copy of the establishment and operation license of the credit institution;
  3. The copy of the foreign exchange transaction license granted by the State Bank.
• Organizations other than subjects operating in the above-said fields and scope, if having demand to open and use overseas foreign currency accounts, shall have to obtain the written consent of the Prime Minister.
• Residents being State bodies, armed forces units, political organizations, socio-political organisations, social organizations, socio-professional organizations, social funds and charity funds of Vietnam, which operate in Vietnam and have the demand to open and use overseas foreign currency accounts to effect foreign borrowings and repayment of foreign debts of the Government, to receive foreign aids or perform other tasks permitted by the Prime Minister shall be licensed by the State Bank to open and use overseas foreign currency accounts. Such organizations shall have to send the dossiers of application for the license to the State Bank (the Department for Foreign Exchange Management). Such a dossier shall include:

• Residents being diplomatic offices, consulates, armed forces, and representatives of political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds or charitable funds of Vietnam or Vietnamese citizens during their residence in a foreign country shall be permitted to open and operate foreign currency accounts in such foreign country in accordance with the law of that country.

Upon termination or expiry of the duration of residence in the foreign country, such accounts of these organizations and individuals shall be closed and all balance of foreign currency in the accounts shall be transferred to Vietnam (if any). Where there is a need to retain any foreign currency in the foreign country in any form, a written approval from the Governor of the State Bank shall be required.

1. Applicants send the dossiers to the State Bank (the Department for Foreign Exchange Department);
2. Within 15 working days after fully receiving the valid dossiers, the licensed banks or branches of the State Bank shall grant or refuse to grant the license to the organization. In case of refusal to grant the license, a written reply must be given to the applicants, clearly stating the reasons therefore.

Penalties range from 10.000.000 VND to 20.000.000 VND. See Article 18 of the Government’s Decree No. 202/2004/ND-CP of December 10, 2004 on sanctioning violations in the monetary and banking fields