The SBV new circular will regulate the opening and use of Vietnamese đồng-denominated accounts for foreign investors, in order to conduct foreign indirect investment activities in Việt Nam.
The development strategy for 2030 and the restructuring project were being completed before being submitted to the Prime Minister for approval, which would pave the way for the foundation of the state investment fund.
While investors tend to withdraw capital from emerging markets and frontier markets, Viet Nam is still the destination of foreign investors with foreign indirect investment (FII) in the first half of 2019 reaching US$1.28 billion.
Although the direction of foreign capital inflow is becoming increasingly unpredictable due to many external factors, experts say that Viet Nam is still an attractive destination for foreign investors.
Finance Minister Dinh Tien Dung is chairing a conference in Seoul from 16-19 to promote investments from the Republic of Korea (RoK) to Viet Nam, according to the State Securities Commission (SSC).
Circular 05/2014/TT-NHNN (12 March 2014) issued by the State Bank of
Viet Nam (SBV) contains guidelines on opening and using indirect
investment capital accounts for implementing foreign indirect investment
activities in Viet Nam.
Foreign indirect investments must be transacted in Vietnamese dong, with related transactions being made through accounts in authorised banks, noted a State Bank of Viet Nam circular.