SBV Issues New Regulations on Use of Foreign Currencies in Vietnam

3:45:49 PM | 12/4/2019

The State Bank of Vietnam has issued Circular 03/2019/TT-NHNN to amend and supplement several provisions of Circular 32/2013/TT-NHNN on restricting the use of foreign currencies in the territory of Vietnam.

Accordingly, Circular 03 supplements certain provisions regarding the cases that non-residents are allowed to use foreign currencies within the Vietnamese territory.

Foreign investors are entitled to leave a deposit and provide collateral in foreign currencies through transfer when participating in an auction in the case of buying shares in state-owned enterprises to be equitized as approved by the Prime Minister.

Foreign investors are also allowed to use foreign currencies when they purchase State shares and State capital contribution at State-owned enterprises and enterprises with State capital, which are going to be divested as approved by the Prime Minister.

Foreign investors can also use foreign currencies in the case of purchasing shares and capital contributions of State-owned enterprises invested in other enterprises to carry out the divestment of State capital as approved by the Prime Minister.

In the case of winning an auction, foreign investors shall transfer their investment capital according to the provisions of law on foreign exchange to pay for the value of the shares and capital contribution.

If foreign investors fail at auctions, they are eligible to transfer abroad the amount of deposits or collateral in foreign currencies after subtracting related arising expenses (if any).

The new Circular will take effect from May 13, 2019.

Source: NDO