The State Bank of Vietnam in Ho Chi Minh City has just sent an official letter to departments, branches, the city, districts, and Thu Duc requesting close collaboration in disseminating information to residents about foreign currency regulations, buying and selling foreign currencies.
Simultaneously, it encourages residents to buy and sell foreign currencies at credit institutions, without conducting these transactions independently since it contradicts legal regulations and poses various risks.
According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City Branch, individuals holding foreign currency in cash are permitted to sell it to credit institutions licensed to operate in foreign exchange, branches of foreign banks, economic organizations licensed to act as foreign exchange agents.
According to the official letter, foreign exchange agents are only allowed to use Vietnamese currency to buy foreign currency from individuals and are not permitted to sell foreign currency in cash to individuals in return for Vietnamese currency. The exception are foreign exchange agents licensed to exchange currency (exchange Vietnamese currency back into foreign currency when leaving Vietnam) located in isolated areas at international border gates; these agents are permitted to sell foreign currency in cash to individuals holding foreign passports when exiting the country as per regulations.
In Clause 7 of Decree 70/2014/ND-CP dated July 17, 2014, the Prime Minister provided detailed instructions on implementing several provisions of the Foreign Exchange Ordinance and the Ordinance amending and supplementing several provisions of the Foreign Exchange Ordinance, stipulating that Vietnamese citizens are permitted to buy, transfer, and take foreign currency abroad for the purposes of studying, seeking medical treatment, traveling for work, traveling for tourism, visiting, paying fees and charges to foreign countries, providing allowances to relatives abroad, transferring inheritance funds to beneficiaries abroad, transferring money in the event of settling abroad, and transferring money for other legitimate unilateral needs.
Furthermore, when entering or leaving Vietnam through international border gates using a passport and carrying foreign or Vietnamese currency in cash exceeding the prescribed limits, individuals are required to declare such amounts to Customs at the border gate.
Currently, Vietnamese citizens can fulfill their legitimate foreign exchange needs at licensed credit institutions and foreign branches. Within the scope of available foreign currency, credit institutions are obligated to meet residents’ foreign exchange demands for transactions based on the actual and reasonable requirements of each transaction.
“Therefore, residents must provide documents and certificates corresponding to the actual transaction, ensuring that foreign currency is purchased for legitimate purposes and in compliance with legal regulations. Residents must conduct buying, selling, and transferring foreign currency in cash in strict accordance with foreign exchange management regulations and the law. Violations are subject to penalties for administrative violations in banking and finance,” emphasized Mr. Nguyen Duc Lenh.
