Foreign Portfolio Investment in Vietnam Must Be Made in Vietnamese Dong

The account balance of the foreign portfolio investment (FPI ) is not transferred to term deposits and savings deposits at banks or foreign bank branches in Vietnam. According to Circular 05/2014/TT-NHNN issued by the State Bank of Vietnam, FPI in Vietnam must be made in Vietnamese dong through an account opened at a legally licensed bank in Vietnam. Particularly, Circular 05/2014/TT-NHNN provides guidance on opening and using accounts for FPI activities in Vietnam. This Circular is applied to the following subjects: foreign investors who are not Vietnamese residents performing FPI activities in Vietnam; organisations and individuals related to the FPI activities in Vietnam. However, this Circular is not subject to foreign investors who are foreign residents or foreign oganisations and individuals. These subjects performed indirect investment activities in Vietnam under the current regulations of the securities laws and other relevant legal documents. Circular states: All FPI activities of foreign investors in Vietnam have been made in Vietnamese dong. Transactions relating to FPI in Vietnam must be implemented through one FPI account which is opened at a legally licensed bank in Vietnam. In addition, when performing FPI activities in Vietnam under forms prescribed in this Circular, foreign investors must comply with the provisions of the Circular, the legal regulations concerning the opening and using clearance accounts, the regulations and guidance documents of Stock Act, the prevailing regulations relating to capital contribution or share purchase by foreign investors in Vietnamese enterprises and on the stock market of Vietnam, and other relevant legal provisions. More at http://vccinews.com/news_detail.asp?news_id=30161