Cases where foreign currency is allowed in the territory of Vietnam

Can export processing enterprises receive payment in foreign currency when selling goods to domestic enterprises?

1. Are export processing enterprises allowed to receive payment in foreign currency when selling goods to domestic enterprises?

Pursuant to Clause 12, Article 4 of Circular 32/2013/TT-NHNN stipulating cases of using foreign exchange in the territory of Vietnam as follows:

– Residents who are export processing enterprises shall comply with the following regulations:

+ Prices are recorded in contracts in foreign currency and payments are made in foreign currency by bank transfer when purchasing goods from the domestic market to produce, process, recycle, assemble goods for export or for export, except for goods banned from export. Domestic enterprises are allowed to quote, price in foreign currency and receive payment in foreign currency by bank transfer when selling goods to export processing enterprises;

+ Are allowed to quote, price, record prices in contracts in foreign currency and pay and receive payment in foreign currency by bank transfer with other export processing enterprises.

Thus, export processing enterprises are only allowed to use foreign currency when:

– buy goods from the domestic market to produce, process, recycle, assemble goods for export or for export, except for goods banned from export;

– receive payment in foreign currency by bank transfer with other export processing enterprises.

Therefore, enterprises in export processing zones are not allowed to sell goods or provide services to domestic enterprises in foreign currency.

2. Is there any case where foreign currency can be used in the territory of Vietnam?

Pursuant to Article 4 of Circular 32/2013/TT-NHNN as follows:

– Customs agencies, police, border guards and other State agencies at Vietnam’s border gates and bonded warehouses are listed in foreign currency and collected in foreign currency by transfer or cash from non-residents for taxes, entry and exit visa fees, service provision fees and other fees and charges according to the provisions of law.

– Banks, non-bank credit institutions, foreign bank branches licensed to do business and provide foreign exchange services (hereinafter referred to as licensed credit institutions) are allowed to transact, pay, list, advertise, quote, set prices, record prices in contracts and agreements in foreign exchange in foreign exchange. The scope of business and provision of foreign exchange services has been permitted by the State Bank of Vietnam in accordance with the provisions of law.

– Other organizations permitted to provide foreign exchange services are traded and listed in foreign currencies within the scope of foreign exchange service provision permitted by the State Bank of Vietnam in accordance with the provisions of law.

– Residents are organizations with transferred legal status Internal capital in foreign currency is transferred between that organization’s account and the account of a dependent unit without legal status and vice versa.

– Residents are allowed to contribute capital in foreign currency by transfer to implement foreign investment projects in Vietnam.

– Residents carry out import and export entrustment contracts according to the following regulations:

+ Residents Receiving import entrustment has the price recorded in the import entrustment contract in foreign currency and receiving payment in foreign currency transfer for the value of the import contract from the import entruster;

+ Residents receiving entrustment of export have the price recorded in the export entrustment contract in foreign currency and payment in foreign currency by transfer for the value of the export contract to the export entruster.

– Residents are domestic contractors, foreign contractors shall comply with the following regulations:

+ For overseas costs related to the implementation of bidding packages through international bidding according to the provisions of the Bidding Law: contractors are allowed to bid in foreign currency and receive payment in foreign currency by bank transfer from the investor, main contractor to pay, pay and transfer abroad.

+ For the implementation of bidding packages according to the provisions of law on oil and gas: contractors are allowed to bid in foreign currency and Receive payment in foreign currency by transfer from the investor or main contractor for payment, disbursement and transfer abroad.

– Residents who are insurance enterprises shall comply with the following regulations:

+ To quote, evaluate, record the price of insurance services in the contract in foreign currency and receive payment in foreign currency by transfer from the insurance buyer for goods and services that must be reinsurance purchased in the country abroad;

+ In case of loss arising from reinsurance abroad, residents who are insurance purchasing organizations are entitled to receive compensation in foreign currency by transfer from the foreign reinsurance company through the insurance enterprise to pay the costs of overcoming losses abroad.

– Residents who are organizations trading duty-free goods are allowed to list goods prices in foreign currency and receive payment in foreign currency. currency transfer or cash from the supply of goods. Foreign currency used in transactions at duty-free shops shall comply with the provisions of law on duty-free sales.

– Residents who are organizations providing services in quarantine areas at international border gates, organizations operating bonded warehouses may list, quote, price, record prices in contracts in foreign currency and receive payment in foreign currency by transfer or cash from the provision of goods and services.

– Residents who are organizations acting as agents for foreign carriers on the basis of agency contracts signed between the two parties comply with the following regulations:

+ To quote, set prices, and record prices in contracts in foreign currency on behalf of foreign carriers for international freight charges. Payment must be made in Vietnamese Dong;

+ Be allowed to pay in foreign currency by bank transfer to pay for the purchase of goods and services at international seaports, quarantine areas at international airports;

+ Be allowed to be paid in foreign currency in cash to pay salaries, bonuses, and allowances to non-residents authorized by foreign shipping lines.

– Residents are Export processing enterprises comply with the following regulations:

+ Are allowed to record prices in contracts in foreign currency and pay in foreign currency by bank transfer when purchasing goods from the domestic market to produce, process, recycle, assemble goods for export or for export, except for goods banned from export. Domestic enterprises are allowed to quote, set prices in foreign currencies and receive payments in foreign currencies by bank transfer when selling goods to export processing enterprises;

+ Are allowed to quote, set prices, record prices in contracts in foreign currencies and make payments, receive payments in foreign currencies by bank transfer with other export processing enterprises.

– Residents are listed business organizations in the fields of air transportation, hotels, and tourism. advertise prices of goods and services in Vietnam Dong and equivalent foreign currencies on websites and specialized publications (excluding menus and service price lists) using only foreign languages.

– Residents and non-residents are organizations that are allowed to negotiate and pay salaries, bonuses, and allowances in labor contracts in foreign currency by transfer or cash to non-residents and residents who are foreigners working for that organization.

– Non-residents are diplomatic missions and consular offices listed in foreign currency and collect entry and exit visa fees, other fees and charges in foreign currency by transfer or cash.

Thus, except for a few cases in this regulation, the use of foreign currency is allowed.

3. Are there any restrictions when using foreign currency in the territory of Vietnam?

Pursuant to Article 3 of Circular 32/2013/TT-NHNN stipulates the principles of restricting the use of foreign exchange in the territory of Vietnam as follows:

In the territory of Vietnam, except for cases where foreign exchange is used as specified in Article 4 of this Circular, all transactions, payments, listings, advertisements, quotations, valuations, price recording in contracts, agreements and other similar forms (including conversion or adjustment of prices of goods, services, value of contracts and agreements) of residents and non-residents must not be made in foreign exchange.

Thus, according to regulations there are still restrictions and there are still cases where foreign currency is allowed.