Signing a service contract with a non-resident organization, can payment be made in foreign currency?

Even though the project is in Vietnamese territory, but signing a service contract with a non-resident organization, I can get a quote, price in foreign currency and receive payment in foreign currency by transfer, right?

1. Signing a service contract with a non-resident organization, can you pay in foreign currency?

Pursuant to Clause 16, Article 4 of Circular 32/2013/TT-NHNN regulating Non-residents, comply with the following regulations:

+ Transfer in foreign currency to other non-residents;

+ Yes Record prices in contracts in foreign currency and pay for export of goods and services in foreign currency by transfer to residents. Residents are allowed to quote and evaluate prices in foreign currency and receive payment in foreign currency by transfer when providing goods and services to non-residents.

+ Foreign investors are allowed to deposit and deposit money in foreign currency by transfer when participating in the auction in the following cases:

(i) Buying shares in state-owned enterprises undergoing equitization approved by the Prime Minister Prime Minister approved;

(ii) Purchase of shares, state capital contributions in state-owned enterprises, state-owned enterprises with divestment approved by the Prime Minister;

(iii) Purchase of shares, capital contributions of state-owned enterprises investing in other enterprises with divestment approved by the Prime Minister Prime Minister approved

In case of winning the auction, the foreign investor shall transfer investment capital according to the provisions of law on foreign exchange management to pay for the purchase value of shares and capital contributions. In case the auction is unsuccessful, foreign investors are allowed to transfer abroad the deposit and deposit amount in foreign currency after deducting related costs (if any).

2. So are there any cases 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. residence 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 currency. exchange within the scope of business and provision of foreign exchange services that 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 providing foreign exchange services that have been permitted by the State Bank of Vietnam in accordance with the provisions of law.

– Residents are organizations with legal status Transfer internal capital in foreign currency by transfer 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 Residents receiving import entrustment may record the price in the import entrustment contract in foreign currency and receive payment in foreign currency by wire transfer for the value of the import contract from the import entrusting party;

+ Residents receiving entrusted export may record the price in the export entrustment contract in foreign currency and pay in foreign currency by transfer for the value of the export contract to the export entrustment party.

– Residents who are domestic contractors or foreign contractors 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 for payment, payment 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, main contractor for payment, disbursement and transfer abroad.

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

+ To quote, evaluate and record insurance service prices. insurance 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 abroad;

+ In case of loss arising from the reinsurance portion abroad, the resident who is the insurance purchasing organization is entitled to receive compensation in foreign currency by transfer from the foreign reinsurance company through the insurance enterprise to pay the costs of overcoming the loss abroad.

– Residents who are organizations selling duty-free goods are allowed to list goods prices in foreign currency and receive payment in foreign currency by bank 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 consulates listed in foreign currency and collect entry and exit visa fees, other fees and charges in foreign currency by transfer or cash.

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, quotes, 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.