The Vietnamese government has issued Decree 329/2025/NĐ-CP, establishing a specialized foreign exchange management framework for the International Financial Center in Vietnam. This regulation aims to facilitate international capital flows while implementing clear control mechanisms to mitigate risks.
The decree applies to member banks, foreign bank branches, investors, businesses, and individuals engaging in foreign exchange transactions with the International Financial Center. It also covers regulatory bodies, supervisory authorities, and dispute resolution entities within the center.
A key principle is that all money transfer transactions must clearly state their purpose. Foreign investors, members, and related parties are responsible for specifying the transaction details, enabling banks to verify, inspect, and archive documents. This ensures funds are used for their intended purposes, preventing misuse.
Member banks play a critical role in oversight. When providing foreign exchange services, banks must review transaction-related documents and establish internal procedures and risk management mechanisms. Compliance is the bank’s responsibility, extending beyond merely processing customer requests.
All money transfers within the International Financial Center must clearly state their purpose.
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For foreign investment into the International Financial Center, investors must transfer capital through a designated capital account at a member bank. Profits and legal income repatriated abroad must also flow through this account. This centralized approach allows regulators to monitor the full lifecycle of investment capital.
Conversely, when investing from the International Financial Center into other parts of Vietnam, transactions must also occur through the specified account. Member businesses must adhere to foreign exchange regulations similar to those for foreign investors, as guided by the State Bank of Vietnam.
The decree differentiates based on ownership structure. Members wholly owned by foreign investors are exempt from foreign exchange registration for outbound investments. However, transactions must still comply with reporting requirements and use the designated account.
For members not wholly owned by foreign investors, stricter procedures apply. Before transferring funds for outbound direct investment, businesses must register the foreign exchange transaction with local regulatory authorities. Any changes to the investment require registration adjustments, and all capital movements must occur through the specialized account.
Another notable provision concerns the purchase of foreign currency-denominated bonds issued abroad. Domestic banks with 100% local ownership may engage in this activity only if they meet stringent conditions related to profitability, financial obligations, and safety ratios. Total investment value must not exceed 7% of equity, limiting exposure to overseas investment risks.
Additionally, eligible bonds must be rated by international agencies such as Standard & Poor’s, Moody’s, or Fitch Ratings. This requirement ensures asset quality and minimizes potential losses for the banking system.
The decree also provides detailed guidelines for foreign currency account usage. Member businesses must use capital accounts for lending, borrowing, and investment activities both domestically and internationally. For other purposes, they may use standard foreign currency settlement accounts at member banks.
– 5:30 PM, December 21, 2025
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