Legal basis

• Ordinance on Foreign Exchange 2005
• Decree 89/2016/ND-CP stipulating conditions for foreign currency exchange agency activities, service provision of foreign currency receipt, payment and payment of economic organizations
• Decree No. 16/2019/ND-CP amending the Decree stipulating business conditions within the scope of state management of the State Bank of Vietnam

Content

According to the provisions of Article 4.1 of the Ordinance on Foreign Exchange 2005, Foreign currency is the Currency of another country or the common currency of the European Union and other common currency used in international and regional payments. Thus, Foreign currency means foreign currency. This currency is not issued by the central bank of the host country. But still used for payment, circulation, trade around the world.

Economic organizations wishing to conduct direct foreign currency receipt and payment activities must obtain the approval of the State Bank of Vietnam. Accordingly, in order to receive approval, the organization must meet certain conditions.

1. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam to perform activities of directly receiving, paying and paying foreign currencies:

a) Having a contract with a foreign partner on foreign currency receipt and payment services;

b) There is a plan to perform the service of receiving, paying and paying foreign currency signed by the legal representative.

2. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam for an extension of the period to perform activities of directly receiving, paying and paying foreign currencies:

a) Satisfy the conditions specified in Clause 1 above;

b) The issued written approval of direct foreign currency receipt and payment is valid for at least 30 days up to the time of application submission;

c) Not violating the reporting regime as prescribed by the State Bank of Vietnam for at least 04 quarters from the time of being granted written approval for direct foreign currency receipt and payment or written approval for renewal near the date of issuance. up to the time of applying for an extension.

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nguyen Duc Trong via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: info@hongbanglawfirm.com hoặc lienheluathongbang@gmail.com

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