1. Applicable laws

• Law on Investment 2014;
• Decree No. 83/2015/ND-CP;
• Circular No. 12/2016/TT-NHNN

2. Conditions for remittance of investment capital abroad when a Vietnamese investor implements an investment project abroad (“Project”)

There are 4 basic conditions remittance of investment capital abroad applicable to Vietnamese investor:

– Firstly, the investor has been granted an Offshore Investment Registration Certificate (“IRC“)

(Note: If the Investor has not been granted the IRC, the Investor may transfer foreign currencies, goods, machinery, and equipment abroad to serve market survey, research, and other investment preparation prescribed by Government)

– Secondly, the Project has been approved or licensed by a competent authority of the investment recipient country

(Note: If the investment recipient country’s law does not cover investment licensing or approval, the Investor must provide documents proving Investor’s right to invest in the investment recipient country).

– Thirdly, the Investor has opened a Capital Account for Offshore (“Investment Account”)

(Note: Transfering of money from Vietnam abroad and vice versa must be implemented via an Investment Account which is opened at a licensed credit institution in Vietnam and registered at the State Bank of Vietnam under regulations on foreign exchange management).

– Finally, the remittance of investment capital abroad must comply with regulations regarding foreign exchange management, export, technology transfers, and other relevant sectors.

3. Regulatory procedure

When the Investor has been granted the IRC and the Project has been approved or licensed by the competent authority of the investment recipient country, the next step will be

(1) Open an Investment Account; and

(2) Register for Foreign Exchange Transactions related to the Project

a) Investment Account

Type of currency used in the Investment Account is Vietnam dong (VND) or a foreign currency that is suitable for remittance of investment capital abroad

The number of the Investment Account:

– If a Project is granted the IRC, the Investor of the Project shall open an Investment Account. In case the investment capital is VND, the Investor is allowed to open a VND account and a foreign currency account at the same time at a licensed credit institution.

– If the Investor has many Projects, the Investor shall open a separate Investment Account for each Project.

– In case the Project has many Investors, each Investor shall open a separate Investment Account to remit investment capital abroad within the scope of total investment capital abroad and according to its percentage of capital contribution according to the IRC.

b) Registration of Foreign Exchange Transactions related to the Project

Competent authorities issuing written confirmation for registration of foreign exchange management

– In case the Investor is a credit institution: State Bank of Vietnam (“SBV”)

– In case the Investor is not a credit institution: SBV’s branch in a province or city where has the Investor’s main office (if the Investor is an organization) or the Investor’s permanent residence (if the Investor is an individual).

Requisite applications

– An application form;

– A copy which is originated from the original or certified copy or copy enclosed with the original for comparison of the IRC;

– A copy in the foreign language and the translation into Vietnamese (with the Investor’s confirmation for the accuracy of such copy and translation) of the written approval or the investment permit issued by the competent authority of the host country or the document proving Investor’s right to invest in the host country

– An original Investment account granted by the licensed credit institution, including account number and type of currency

– An original certificate granted by the licensed credit institution to certify the amount of capital transferred abroad by the Investor before the Investor obtains the IRC (the purpose of covering expenditures for activities related to the investment preparation of the Project); and

– A written explanation of the need to transfer investment capital abroad in VND (if any).

The above are some main provisions relating to the procedure for remittance of offshore investment capital from Vietnam. We are catering to legal services relating to this activity. Please contact us via our Hotline +8486 888 1900 or email: info@bizlawyer.vn for timely advice and support.