Central bank proposes overhaul of forex rules for foreign investment flows

Central bank proposes overhaul of forex rules for foreign investment flows

The draft circular is intended to replace Circular 06/2019/TT-NHNN, introducing a more flexible and synchronised approach to managing capital flows associated with foreign investment activities.

Workers at a plant of a FDI company in Hải Phòng City. — VNA/VNS Photo

The State Bank of Vietnam is drafting a new circular to revise foreign exchange management regulations for foreign direct investment (FDI) into Việt Nam, in order to align the framework with recent changes in investment law and evolving market practices.

The draft circular is intended to replace Circular 06/2019/TT-NHNN, introducing a more flexible and synchronised approach to managing capital flows linked to foreign investment activities.

One of the key proposed changes would allow investors to open investment capital accounts before obtaining an investment registration certificate.

According to the draft, eligible entities would be permitted to open investment capital accounts prior to the issuance of an investment registration certificate.

However, the scope of account usage during this pre-licensing phase would be limited. The draft specifies that such accounts may only be used to receive capital contributions and pay expenses related to the formation of the investment project, ensuring early-stage transactions remain controlled.

The draft also revises rules on account structures, allowing investors to open multiple foreign currency accounts corresponding to different currencies at the same licensed bank. This marks a shift from existing restrictions that limit the number of accounts and offers greater flexibility for investors managing multi-currency capital flows.

In addition, the scope of application is expanded to include investors in oil and gas projects and enterprises operating within international financial centres, reflecting updates introduced under Decree 96/2026/NĐ-CP and Decree 329/2025/NĐ-CP, which provide guidance on the implementation of the Investment Law 2025 and the operation of international financial centre in Việt Nam.

Alongside measures aimed at easing procedural constraints, the draft circular reinforces principles governing capital management.

It reiterates that all transactions related to capital contribution, capital transfer, repatriation of principal and profits and other lawful income must be conducted through designated investment capital accounts.

Detailed provisions are also introduced to clarify permitted inflows and outflows in both foreign currency and Vietnamese đồng accounts. These include capital contributions, equity transfers, profit remittances abroad and activities related to foreign borrowing and debt repayment.

Notably, regulations on the transfer of investment capital and profits overseas are largely retained, maintaining policy consistency. At the same time, adjustments to account management and cash flow mechanisms are designed to better reflect current investment practices.

By requiring transactions to pass through dedicated accounts, regulators aim to improve oversight, data collection and statistical tracking of foreign investment from the early stages of project implementation. 

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