Vietnamese investors will be required to open and use foreign currency accounts to engage in foreign direct investments (FDI), according to Circular No 36 of the State Bank of Viet Nam. Photo thoibaonganhang.vn

HA NOI (Biz Hub) — Vietnamese individuals and organisations will be required to open and use foreign currency accounts to engage in foreign direct investments (FDI) in the future.

The regulation is part of the recently issued Circular No 36 of the State Bank of Viet Nam (SBV).

The circular states that after being awarded an overseas investment certificate, an investor will have to open an account at an authorised legal credit institution, as well as register with the SBV or its branches in the cities and provinces. All international transactions from and to Viet Nam must be carried out through this account.

Vietnamese investors, who have several investment projects abroad, must open separate accounts for every project. For projects that require the participation of more than one investor, each investor will have to open a separate account for the transfer of foreign currency at the same authorised credit organisation as the other investors, after they receive overseas investment certificates from a Vietnamese authority.

The SBV's Department of Foreign Exchange Control will monitor the approval of registrations, changes in the accounts and the progress of capital transfers by investors through the authorised credit organisations. Its branches in the cities and provinces will be responsible for the above activities by organisations that have their headquarters based in these areas, as well as by any individual who has a registered permanent residence.

Investors will be responsible for repatriating the profits and capital back to the country if their organisations are liquidated, dissolved, broken-up or suffer capital erosion, under the current regulations on investment.

If investors wish to invest the profits from overseas projects in ongoing or other projects, they will have to complete the procedures to transfer the funds or seek approval for new overseas investment projects and report the same to the SBV.

The circular will come into effect on February 14, 2014. — VNS