Circular No. 12/2016/TT-NHNN dated June 29, 2016 of the State Bank of Finance on guiding the foreign exchange management of offshore investment activities

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Issuing body:	State Bank of Vietnam	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	12/2016/TT-NHNN	Signer:	Nguyen Thi Hong
Type:	Circular	Expiry date:	Updating
Issuing date:	29/06/2016	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Finance - Banking , Investment

SUMMARY

Principles of opening pre-investment accounts of offshore investment activities

On June 29, 2016, the State Bank of Vietnam issued the Circular 12/2016/TT-NHNN guiding the foreign exchange management of offshore investment activities and takes effect August 13, 2016.

In accordance with the regulations of this Decree, after being granted an offshore investment registration certificate, an investor shall open 1 (one) investment capital account in 1 (one) type of foreign currency that meets its/his/her demand for outbound transfer of investment capital at 1 (one) licensed credit institution, and register offshore investment-related foreign exchange transactions. In case of outbound transfer of Vietnam-dong investment capital, an investor may concurrently open and use 1 (one) Vietnam-dong investment capital account and 1 (one) foreign-currency investment capital account at 1 (one) licensed credit institution and shall register offshore investment-related foreign exchange transactions. An investor that has more than one overseas investment project shall open a separate investment capital account for every project.

Investors shall transfer foreign currency amounts abroad before they are granted offshore investment registration certificates via only 1 (one) foreign-currency pre-investment account opened at 1 (one) licensed credit institution. After an offshore investment registration certificate is granted for a project, the foreign currency account shall be used as an investment capital account and registered with the State Bank.

On June 29, 2016, the State Bank of Vietnam issued the Circular 12/2016/TT-NHNN guiding the foreign exchange management of offshore investment activities and takes effect August 13, 2016.

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THE STATE BANK OF VIETNAM

No. 12/2016/TT-NHNN

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

Hanoi, June 29, 2016

CIRCULAR

Guiding the foreign exchange management of offshore investment activities[1]

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to November 26, 2014 Law No. 67/2014/QH13 on Investment;

Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange, and March 18, 2013 Ordinance No. 06/2013/PL-UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 83/2015/ND-CP of September 25, 2015, prescribing offshore investment;

Pursuant to the Government’s Decree No. 156/2013/ND-CP of November 11, 2013, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates the Circular guiding the foreign exchange management of offshore investment activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular prescribes the opening and use of foreign-currency or Vietnam-dong investment capital accounts; registration and registration for change of offshore investment-related foreign exchange transactions; outbound transfer of foreign currency amounts by investors before they are granted offshore investment registration certificates; and transfer of overseas profits, lawful incomes and investment capital to Vietnam.

2. The foreign exchange management of offshore investment activities in the oil and gas sector and in the form prescribed at Point d, Clause 1, Article 52 of the Law on Investment must comply with the Government’s separate regulations and guidance of the State Bank of Vietnam (below referred to as the State Bank).

Article 2. Subjects of application

1. Investors defined in Clause 1, Article 2 of the Government’s Decree No. 83/2015/ND-CP of September 25, 2015, prescribing offshore investment (below referred to as Decree No. 83/2015/ND-CP).

2. Other organizations and individuals involved in offshore investment activities.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Licensed credit institution means a credit institution or foreign bank branch that is licensed to conduct foreign exchange business and provide foreign exchange services in accordance with the State Bank’s regulations.

2. Offshore investment capital account means a foreign-currency or Vietnam-dong payment account opened by an investor at a licensed credit institution in Vietnam to conduct collection and payment transactions in accordance with this Circular (below referred to as investment capital account).

3. Foreign-currency account opened before an offshore investment registration certificate is granted means a foreign-currency payment account opened by an investor at a licensed credit institution in Vietnam to transfer foreign currency amounts abroad before the investor is granted an offshore investment registration certificate in order to cover expenses for the formulation of an overseas investment project prescribed in Clause 2, Article 19 of Decree No. 83/2015/ND-CP (below referred to as foreign-currency pre-investment account).

4. Registration of offshore investment-related foreign exchange transactions means an investor registering with the State Bank information on investor, investment capital, investment capital account opened at a licensed credit institution to carry out overseas investment activities, and schedule of outbound transfer of investment capital in cash in accordance with this Circular.

5. Registration for change of offshore investment-related foreign exchange transactions means an investor registering under this Circular with the State Bank any change in the information on investor, investment capital, investment capital account or schedule of outbound transfer of investment capital in cash as compared with the contents of the State Bank’s written certification of the registration of offshore investment-related foreign exchange transactions.

6. Certification of registration of offshore investment-related foreign exchange transactions means the State Bank’s written certification of an investor’s registration of offshore investment-related foreign exchange transactions in accordance with this Circular.

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Circular No. 12/2016/TT-NHNN dated June 29, 2016 of the State Bank of Finance on guiding the foreign exchange management of offshore investment activities

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