On 17 July 2014, Vietnam issued Decree No. 70/2014/ND-CP providing guidance on implementation of the Ordinance of foreign exchange. The new Decree replaces Decree 160/2006/ND-CP and makes the following changes:
- Only Vietnamese residents (including corporations) are allowed to deposit in foreign currency at credit institutions and foreign residents are no longer allowed to do so.
- A direct investment capital account for residents having foreign investments and for foreign investors having contracts in Vietnam can be opened in foreign currency and Vietnamese Dong. Previously, one could open such an account only in foreign currency.
- The time limit for transferring foreign currency abroad has been increased from 30 days including holidays to 30 working days.
- All transactions and cash payments for exports and imports of goods and services must be conducted by bank transfers through authorised credit institutions. Any exceptions to the rule must receive an approval from the State Bank of Veitnam
The Circular takes effect from 5 September 2014.