Headlines 02/08/2019 10:43 SA

Regulations on foreign direct investment in Vietnam get ready to take effect

Nguyễn Thương

On June 26, 2019, the State Bank of Vietnam promulgated the Circular No. 06/2019/TT-NHNN providing instructions about foreign exchange management concerning foreign direct investments in Vietnam.

Pursuant to this Circular, foreign investors and domestic investors in enterprises having their foreign direct stakes in Vietnam may make either foreign-currency or Vietnamese-dong investments according to the capital contribution rate mentioned in:

- Investment registration certificate;

- Establishment and operation permit prescribed in specialized laws (with respect to enterprises having foreign direct investments that are established and operated as per specialized laws);

- Notice of foreign investor’s conformance to regulatory requirements for capital contribution, share purchase or buyback;

- PPP contract with a competent state authority which has already been in effect and other documents evidencing foreign investor’s contribution of capital which has been made in compliance with laws.

(currently, both foreign investors and domestic investors in enterprises having foreign direct investments may take either foreign-currency or Vietnamese-dong stakes according to the investment rate inscribed in the investment certificate).

Circular No. 06/2019/TT-NHNN will enter into force on September 6, 2019.

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