Outward investment-related forex transaction

From August 13, 2016, the registration of foreign exchange transactions related to outward investment activities shall comply with the provisions of Circular 12/2016/TT-NHNN guiding foreign exchange management for outward investment.

Legal basis

• Law on investment 2020
• Circular No.12/2016/TT-NHNN dated June 29, 2016, guiding foreign exchange management for outward investment
• Circular No.31/2018/TT-NHNN dated December 18, 2018, guiding foreign exchange management for outward investment in the petroleum industry

Conditions to register for outward investment-related forex transactions (Clause 1, Article 10 of Circular No.12/2016/TT-NHNN)

- Within the effective period of Certificate of outward investment registration granted by a competent authority to the investor in compliance with the laws; and

- After the investment activities have been approved or licensed by a competent authority in the host country or the investor has obtained a document proving that the investment activities are conformable with the host country's law; and

- After the investor has opened an investment capital account at a licensed credit institution as prescribed in Article 5 of Circular No.12/2016/TT-NHNN but before he/she transfers investment capital abroad.

Procedures for the registration of outward investment-related forex transactions

Step 1: The investor must, by hand or by post, submit 01 (one) set of applications for the registration of outward investment-related forex transactions. Within 05 (five) working days from the date on which the application is received, SBV shall grant a written request for modification or supplementation to the investor if the submitted application is invalid or insufficient.

Step 2: Within 10 (ten) working days from the date on which the valid application is received, SBV shall confirm or refuse to confirm the investor's registration of outward investment-related forex transactions.

          Note: In case of refusal to confirm the investor's registration of outward investment-related forex transactions, SBV shall issue a written notice of reasons.

Step 3: The State Bank returns the results to the Investor.

The application for the registration of outward investment-related forex transactions (Article 9 of Circular No.12/2016/TT-NHNN)

- The application form for the registration of outward investment-related forex transactions (using the form stated in Annex No. 01 herein).

- The copy which is originated from the master register or certified copy or copy, enclosed with the original for comparison, of Investment License or Certificate of outward investment or Certificate of the outward investment registration issued by competent authorities of Vietnam. The person making the comparison of the copy with the original thereof, if any, shall verify the accuracy of the copy with its original.

- The copy in a foreign language and the translation into Vietnamese (with the investor's confirmation of the accuracy of such copy and translation) of the written approval or the investment permit issued by the host country or the document proving that the investment activities executed in the host country are conformable with the host country's law.

- The original certificate of the investor's investment capital account granted by the licensed credit institution, including account number and type of foreign currency.

- The original certificate granted by the licensed credit institution to certify the amount transferred abroad by the investor before the investor obtains the Certificate of outward investment registration for the purpose of covering expenditures for activities related to the forming of such investor’s investment project abroad in compliance with laws in cases where the investment capital is transferred abroad before having Certificate of outward investment registration granted.

- The written explanation about the transfer of investment capital in VND to foreign countries in cases where the investment capital in VND is transferred abroad.

Power to confirm the registration of outward investment-related forex transactions and registration of changes thereof (Clause 1, 2 Article 8 of Circular No.12/2016/TT-NHNN)

The registration of outward investment-related forex transactions and the registration of changes thereof made by the investor that is a credit institution shall be confirmed by SBV.

The registration of outward investment-related forex transactions and the registration of changes thereof made by the investor that is not a credit institution shall be confirmed by SBV’s branch in a province or city where the main office of the investor that is not a credit institution is located, or the individual investor’s permanent residence or other investor’s business is registered.

Note: In case the changes related to the investor that is in charge of executing the project result in the change of the authority competent to confirm the registration of changes of outward investment-related forex transactions, the initial competent authority confirming the registration of outward investment-related forex transactions and the registration of changes thereof shall be responsible for:

• Taking charge of receiving the application for the registration of changes of outward investment-related forex transactions submitted by the investor;
• Within 07 (seven) working days from the date on which the investor's application for the registration of changes of outward investment-related forex transactions is received, sending the original of the received application and copies of settled applications for the registration and the registration of changes of such investor (if any) to the competent authorities mentioned in Clause 1 and Clause 2 herein to settle within the period prescribed in Clause 2 and Clause 3 Article 13 of this Circular; at the same time, informing the investor of sending his/her application for the registration of changes of outward investment-related forex transactions to the other competent authority.

The above is the Registration of outward investment-related forex transactions in HNLAW & PARTNERS Law Firm. If the business still has problems, unknowns, or needs other legal assistance, please contact the online legal consulting department through the hotline: 0912.918.296 for answers. We hope to receive the cooperation of customers!

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