Legal Knowledge

May Cooperatives Collect Revenue in Foreign Currency?

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Quick answer: As a rule, no. All transactions and payments in the territory of Vietnam may not be made in foreign exchange, except in cases permitted by foreign exchange law. A cooperative may only collect revenue and income in foreign currency in permitted cases — such as exporting goods or providing services to foreigners — and must comply with foreign exchange management regulations.

Legal Basis

  • Law on Cooperatives 2023 (No. 17/2023/QH15);
  • Ordinance on Foreign Exchange 2005 (as amended and supplemented) and guiding documents.

Principles of Foreign Exchange Management

  • In the territory of Vietnam, all transactions, payments and price listings may not be made in foreign exchange, except in permitted cases;
  • Residents and economic organizations must conduct transactions in Vietnamese Dong;
  • Violations may be subject to administrative sanctions in the foreign exchange and banking sector.

Cases Where a Cooperative May Collect Foreign Currency

  • Revenue from exporting goods and services abroad;
  • Providing services to non-residents as prescribed;
  • Other special cases permitted by the State Bank of Vietnam;
  • Foreign currency collected must be transferred to a foreign currency account at a permitted credit institution and used or sold as prescribed.

Obligations of a Cooperative with Foreign Currency Revenue

  • Open a foreign currency account at a bank permitted to conduct foreign exchange operations;
  • Make foreign exchange reports and statistics as prescribed;
  • When Vietnamese Dong is needed: sell the foreign currency to a permitted credit institution;
  • Account foreign currency revenue at the exchange rate prescribed by accounting and tax law.

If you need to determine the appropriate approach for your specific situation, you should consult a lawyer first to have your dossier reviewed and receive advice on handling options.

For prompt consultation, please contact our lawyers at 0966.475.966.

Related Articles

  • Where Do Cooperative Payables Arise From?
  • Conditions for Establishing a Cooperative
  • Is a Cooperative an Enterprise?
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