New regulations on use of foreign currencies in Vietnam
The State Bank of Vietnam recently issued Circular No. 03/2019/TT-NHNN on amending and supplementing a number of articles of Circular No. 32/2013/TT-NHNN guiding the implementation of regulations on restricting the use of foreign currencies across the Vietnamese territory.
Accordingly, Circular 03 supplements regulations concerning the cases in which the use of foreign currencies is allowed in the territory of Viet Nam for non-residents. Foreign investors are allowed to pay deposit and provide collateral in foreign currency by transfer when they participate in auction in the following cases:
(i) To purchase shares in state-owned enterprises which are entitled to equitization as approved by the Prime Minister.
(ii) To purchase the state’s shares and capital contributions in state-owned enterprises and enterprises with state capital to be divested as approved by the Prime Minister.
(iii) To purchase shares and capital contributions of state-owned enterprises invested in other enterprises which conduct the withdrawal of state capital as approved by the Prime Minister.
In case of winning the auction, foreign investors shall transfer investment capital in line with the provisions of law on foreign exchange management in order to make payment for the value of purchasing shares and capital contributions. In case of the unsuccessful auction, foreign investors may transfer abroad the amount of deposit and collateral in foreign currency after subtracting the related arising expenses (if any).
This Circular takes effect from May 13, 2019.