Ordinance on foreign exchange control 2005

The Ordinance on Foreign Exchange 2005, issued by the Standing Committee of the National Assembly of Vietnam, governs all activities related to foreign exchange within the country. Its key contents include:

1. Scope of Regulation:

   • Collection, expenditure, and payment in foreign currencies;

   • Foreign currency exchange and conversion;

   • Import and export of foreign currency in cash;

   • One-way money transfers;

   • Other foreign exchange transactions and foreign exchange business activities.

2. Principles of Management:

   • The State manages foreign exchange activities uniformly through the State Bank of Vietnam;

   • Implements current account liberalization and gradually relaxes capital account controls;

   • Organizations and individuals may only conduct foreign exchange transactions via licensed institutions;

   • The use of foreign currency within Vietnam is restricted and subject to State regulations.

3. Regulations on Foreign Currency Accounts and Deposits:

   • Individuals and organizations are allowed to open foreign currency accounts at licensed credit institutions;

   • Usage of these accounts, including transfers abroad and international payments, must comply with legal provisions.

4. One-way Money Transfers:

   • Permits personal remittances for purposes such as tuition, medical expenses, allowances, inheritances, and other lawful reasons;

   • Must comply with documentation and regulatory requirements.

5. Management of Foreign Exchange Business Activities:

   • Only licensed organizations may engage in foreign exchange business;

   • Foreign exchange transactions must adhere to legal regulations on exchange rates, purposes, and limits.

6. Sanctions for Violations:

   • Violations may be subject to administrative or criminal penalties depending on the severity;

   • Penalties may include license revocation, fines, or confiscation of assets involved.