Procedures and documents to apply for a license from the State Bank according to law provisions

How are cases of opening and using foreign currency accounts abroad by residents who are economic organizations regulated by law?

1. Are export processing enterprises allowed to open foreign currency accounts?

Pursuant to Article 23 of the 2005 Foreign Exchange Ordinance (amended by Clause 14, Article 1 of the 2013 Ordinance on Amendments to the 2013 Foreign Exchange Ordinance), regulations on opening and using accounts are as follows:

– Residents and non-residents are allowed to open foreign currency accounts at organizations Credit allowed. The State Bank of Vietnam regulates the use of foreign currency accounts by the subjects specified in this Clause.

– Residents are credit institutions licensed to open and use foreign currency accounts abroad to carry out foreign exchange activities abroad according to the regulations of the State Bank of Vietnam.

– Residents are organizations that are considered and granted licenses to open accounts by the State Bank of Vietnam. foreign currency abroad in the following cases:

+ Economic organizations have branches or representative offices abroad or need to open foreign currency accounts abroad to receive loans, implement commitments and contracts with foreign parties;

+ State agencies, armed forces units, political organizations, socio-political organizations, socio-political-professional organizations, Vietnamese social organizations, socio-professional organizations, social funds, and charity funds operating in Vietnam have a need to open foreign currency accounts abroad to receive foreign aid, sponsorship, or other cases permitted by Vietnamese competent authorities.

2. What are the cases of opening and using foreign currency accounts abroad by residents who are economic organizations?

Pursuant to Clause 3, Article 3 of Circular 20/2015/TT-NHNN stipulating the cases of opening and using foreign currency accounts abroad by residents who are economic organizations as follows:

– Enterprises, cooperatives, unions Cooperative associations (hereinafter referred to as foreign borrowers) open and use foreign currency accounts abroad to make foreign loans according to agreements with foreign lenders.

After being granted a License by the State Bank, economic organizations are allowed to open and use foreign currency accounts abroad according to the contents specified in the License, the Decision to amend and supplement the License (if any), the provisions of this Circular and the host country’s laws. at the place where the economic organization opens its account.

3. Regarding the procedures and documents for applying for a license from the State Bank, how are they regulated by law?

Thus, based on Articles 8 to Article 16 of Circular 20/2015/TT-NHNN stipulating the procedures and documents for applying for a license from the State Bank as follows:

– Document components as prescribed in Clause 1 and Clause 2, Article 11 of the Circular

– A copy with a Vietnamese translation of the commitment, agreement, or contract signed with a foreign party containing an agreement on opening a foreign currency account abroad, or a copy with a Vietnamese translation of the foreign party’s document requesting to open a foreign currency account abroad to implement the commitment, agreement, or contract in case this provision is not in the commitment, agreement, or contract.

– Decision approving the cost estimate for using foreign currency abroad is signed by the legal representative of the organization.

– Copy with Vietnamese translation of papers and documents related to overseas bidding works in case of implementing a bidding contract abroad: contract signed between the investor and the main contractor; Contract signed between the main contractor and subcontractor or other relevant documents.

– Document explaining expected revenue sources from abroad to be remitted to the country with supporting documents (if any) (in case of implementation of a bidding contract abroad).

– A copy of the inspection record or a valid temporary registration certificate from a competent authority in Vietnam or a copy with a Vietnamese translation of the registration certificate from a competent authority abroad (in case of opening a foreign currency account in a foreign country to execute a ship purchase and sale contract with a foreign party).

– Document proving the source of foreign currency to execute a ship purchase and sale contract with a foreign party (in case of opening a foreign currency account abroad to implement a ship purchase and sale contract with a foreign party).

Thus, there are many procedural documents that will be different depending on the case.