Bank account for indirect investment
Indirect investment activities of foreign investors in Vietnam may take the following forms:
- Contribution of capital to, purchase and sale of shares and contributed capital in, Vietnamese enterprises which remain unlisted or unregistered for trading on the Vietnamese securities market without direct participation in the management and execution of such enterprises.
- Contribution of capital to, purchase and sale of shares of, Vietnamese enterprises on the unlisted public companies market (UPCOM) and listed securities market without direct participation in the management and execution of such enterprises.
- Purchase and sale of stocks and other types of securities on the Vietnamese securities market.
- Purchase and sale of other valuable papers in Vietnam dong issued by residents being licensed organizations in the Vietnam territory.
- Entrustment of investment in Vietnam dong through fund management companies, securities companies and organizations licensed to perform the operation of investment entrustment in accordance with the law on securities; entrustment of investment in Vietnam dong through credit institutions and foreign bank branches licensed to perform the operation of investment entrustment under regulations of the State Bank.
- Contribution of capital and transfer of capital contributed by foreign investors (not directly participating in management) to securities investment funds and fund management companies in accordance with the law on securities.
- Other indirect investment forms in accordance with law.
Opening of indirect investment capital accounts
When conducting indirect investment activities in Vietnam, a foreign investor shall open one (1) indirect investment capital account at one (1) licensed bank to conduct licensed collection and payment transactions.
In case a foreign investor has opened and is currently using an indirect investment capital account at a licensed bank but still wishes to open another indirect investment capital account at another licensed bank, it/he/she shall close the previously opened indirect investment capital account and transfer the whole balance on such account to the new account. The procedures for opening and closing indirect investment capital accounts comply with regulations of licensed banks.
Foreign investors may conduct collection and payment transactions on their indirect investment capital accounts newly opened under the above regulations only after closing and liquidating previously opened indirect investment capital accounts.
Related legal documents:
- Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005 on Foreign Exchange;
- Ordinance No. 06/2013/PL-UBTVQH13 dated March 18, 2013 amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;
- Circular No. 05/2014/TT-NHNN dated March 12, 2014 guiding the opening and use of indirect investment capital accounts for implementation of foreign indirect investment activities in Vietnam.