New Circular Guiding The Restrictions On The Use Of Foreign Exchange In Vietnam.
Legal News & Analysis - Asia Pacific - Vietnam - Regulatory & Compliance
1 May, 2019
New Circular No. 03/2019/TT-NHNN amending and supplementing some articles of Circular 32/2013/TT-NHNN dated 26 December 2013 guiding the implementation of provisions restricting the use of foreign exchange in the Vietnamese territory
On 29 March 2019, the State Bank of Vietnam (SBV) issued Circular No. 03/2019/TT-NHNN (Circular 03) supplementing a number of provisions of Circular 32/2013/TT-NHNN dated 26 December 2013 of the governor of the SBV guiding the implementation of provisions restricting the use of foreign exchange within the territory of Vietnam. Circular 03 shall take effect as from 13 May 2019.
Circular 03 adds cases where non-residents are permitted to use foreign currency within the territory of Vietnam. Accordingly, foreign investors shall be able to pay a deposit or escrow deposit in foreign currency by way of bank transfer when participating in an auction in the following cases:
- Purchasing shares in a State-owned enterprise upon its equitisation as approved by the Prime Minister;
Purchasing shares or a capital contribution portion of the State in a State-owned enterprise or in an enterprise with State capital upon divestment of the State as approved by the Prime Minister;
Purchasing shares or a capital contribution portion of a State-owned enterprise invested in another company upon its divestment as approved by the Prime Minister.
When successful at the auction, such foreign investors shall transfer the investment capital pursuant to the foreign exchange control regulations, in order to make the payment of the purchase price of the purchased shares or capital contribution portion. When unsuccessful at the auction, such foreign investors are permitted to remit such deposit or escrow deposit in foreign currency, after deducting relevant expenses (if any).
For further information, please contact:
Mark Fraser, CEO/ Managing Partner, Frasers Law Company