Recently, there has been a growth in demand for the exchange and purchase of foreign currencies by international visitors, tourists, and local residents. The management of foreign exchange dealers and the buying and selling of foreign currencies within the area are being effectively managed by the relevant authorities.
To further ensure discipline and order in foreign exchange operations, including the prevention of organizations and individuals from buying and selling foreign currencies freely in violation of legal regulations, the HCM City Branch of the State Bank of Vietnam (SBV) proposes that the City Party Committee’s Mass Mobilization Department, the Ho Chi Minh City Fatherland Front Committee, the Department of Information and Communications, and the People’s Committees of districts and Thu Duc City coordinate in disseminating and providing information to the public regarding several matters related to foreign exchange transactions.
Firstly, individuals with foreign currency in cash form are entitled to sell such foreign currency to credit institutions that are authorized to conduct foreign exchange operations, branches of foreign banks, economic organizations that have been granted licenses to operate as foreign exchange dealers by the SBV’s Ho Chi Minh City Branch, in accordance with the Foreign Exchange Dealer Regulations issued under Decision No. 21/2008/QD-NHNN dated July 11, 2008 of the Governor of the SBV. Foreign exchange dealers may only use Vietnamese Dong to purchase foreign currency in cash from individuals and may not sell foreign currency in cash to individuals in exchange for Vietnamese Dong (except for foreign exchange dealers authorized to exchange foreign currency at isolation areas in international border gates, who may sell foreign currency in cash to individuals holding foreign passports when they are leaving the country, in accordance with regulations).
Secondly, pursuant to the provisions of Article 7 of Decree No. 70/2014/ND-CP dated July 17, 2014 of the Prime Minister detailing the implementation of certain articles of the Foreign Exchange Ordinance and the Ordinance Amending and Supplementing Certain Articles of the Foreign Exchange Ordinance, Vietnamese citizen residents are permitted to purchase, transfer, and bring foreign currencies out of the country, subject to the regulations of the SBV, for the following purposes:
– Studying or receiving medical treatment abroad;
– Traveling, working, or visiting abroad;
– Paying fees and charges to foreign entities;
– Providing subsidies to relatives living abroad;
– Transferring inheritance money to beneficiaries living abroad;
– Transferring money in cases of settling abroad;
– Making one-way transfers for other legitimate needs.
Thirdly, individuals entering or leaving Vietnam through international border gates and carrying foreign currency or Vietnamese Dong in cash that exceeds the prescribed limits must declare such amounts to the Customs at the border gate.
Fourthly, legitimate foreign currency needs of Vietnamese citizens may be met at authorized credit institutions and branches of foreign banks. Within the limits of available foreign currency, CCIs are responsible for meeting the foreign currency needs of individuals for payments in the above-mentioned transactions based on the actual and reasonable needs of each transaction. Therefore, individuals must provide the required documents and evidence in accordance with the actual transaction, as instructed by the authorized CCIs, to ensure that the purchase of foreign currency is for legitimate purposes and in compliance with legal regulations.
Fifthly, the buying, selling, and transfer of foreign currency in cash by individuals must be carried out in accordance with foreign exchange management regulations and the provisions of law. Any violations will be subject to penalties as prescribed in Decree No. 88/2019/ND-CP dated November 14, 2019 of the Government, which provides regulations on administrative sanctions in the monetary and banking sectors.
Therefore, individuals with legitimate foreign currency needs should contact authorized CCIs to obtain guidance on compliance with legal regulations, and should refrain from engaging in unauthorized foreign exchange transactions, which violate the law and pose potential risks.
