Tiếng Việt
中文 (中国)
The using of foreign currency in the territory of Vietnam is currently limited in order to preserve the strength of Vietnam Dong – Vietnam’s currency. If other currencies such as USD, AUD, Euro, Swiss France,… are constantly traded in the open market, the value of VND will slowly deteriorate as people will not use that currency anymore, exposing Vietnam to the potential threat of being independent from other countries’ influences.
In the territory of Vietnam, all transactions, payments, quotations, advertisements, price quotes, pricing, and pricing in contracts, agreements, and similar forms by residents and non-residents must not be conducted in foreign currency, except in cases permitted by the regulations of the State Bank of Vietnam.
Consequently, the use of foreign currency is restricted within the territory of Vietnam for various financial activities, and individuals, whether residents or non-residents, are prohibited from engaging in transactions, payments, quotations, advertisements, price quotes, pricing, and pricing in contracts and agreements using foreign currency, unless permitted by the State Bank of Vietnam.
Under Article 4 of Circular 32/2013/TT-NHNN amended by Article 1 of Circular 03/2019/TT-NHNN and Clause 1 of Circular 16/2015/TT-NHNN, the cases where payments can be made in foreign currency in Vietnam are as follows:
“Article 4. Cases of using foreign currency in the territory of Vietnam
- Customs authorities, police, border defense forces, and other state agencies at Vietnam’s border gates and foreign trade warehouses are allowed to list and collect taxes, visa fees, service supply fees, and other specified fees from non-residents in foreign currency through transfer or cash.
- Banks, non-bank credit institutions, and foreign bank branches permitted to conduct foreign exchange services (hereinafter referred to as permitted credit institutions) are allowed to transact, make payments, list, advertise, quote, price, and price contracts and agreements in foreign currency within the scope of foreign exchange services as permitted by the State Bank of Vietnam according to legal regulations.
- Other organizations permitted to provide foreign exchange services are allowed to transact and list in foreign currency within the scope of foreign exchange services as permitted by the State Bank of Vietnam according to legal regulations.
- Resident entities, as legal entities, are allowed to transfer internal capital in foreign currency via transfer between their account and the account of non-legal entity subordinate units and vice versa.
- …”
Based on Article 23 of Decree 88/2019/NĐ-CP, the penalties for action of illegal trading with foreign currency on the soil of Vietnam involve the issuance of a warning or a fine, depending on the value of the goods subject to payment in foreign currency, with the prescribed penalty ranging from 10,000,000 VND to 100,000,000 VND.
The specified penalty in this Decree is a monetary fine applicable to individuals. For organizations committing the same administrative violation, the fine is double the amount imposed on individuals.
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