Question: I am a foreigner. I have just established a two-member limited liability company in Viet Nam. I also have an investment certificate. Based on my research, setting up a business means a need for a direct investment capital account (DICA). However, I’m quite unsure whether I can open multiple types of accounts (DICA) or not. Do I have to open a Viet Nam dong account or a foreign currency account? Looking forward to receiving an answer.
Nghiep Thanh Law will help readers understand the principle of opening a direct investment capital account (DICA).
We agree with your point. That is, you established a business in Viet Nam, in which you are a member and your business also has an Investment Registration Certificate; then, your business is a foreign-invested enterprise. Thus, you have to open a DICA.[1]
Regulation on opening a capital account as follows:[2]
– Must open a DICA in a foreign currency at a bank that is allowed to conduct lawful income and expenditure transactions in the foreign currency, related to foreign direct investment activities in Viet Nam.
– An investor who has contributed investment capital in any foreign currency may open only one DICA in that same foreign currency at a bank allowed as mentioned above.
– If the investment is in Viet Nam dong, the investor will be allowed to open a DICA in Viet Nam dong at a bank allowed where the DICA in a foreign currency has been opened to conduct lawful income and expenditure transactions. in Viet Nam Dong related to foreign direct investment activities in Viet Nam;
– If it is a BCC contract or directly implementing multiple PPP projects, the foreign investor must open a separate DICA corresponding to each BCC contract or PPP project.
Note: The bank allowed is a Commercial Bank, a foreign bank branch is allowed to trade and provide foreign exchange services (Article 2.1 Circular 16/2014/TT-NHNN)
Therefore, the investor will only be allowed to open a DICA, corresponding to each case opening a capital account in a foreign currency, corresponding to the type of foreign currency of the contributed capital, corresponding to Viet Nam dong invested.
Especially BCC contracts and multiple PPP projects, the investor must open a separate capital account for each contract and project type.
The content above is the advice from Nghiep Thanh Law on “Principles of opening a direct investment capital account in Viet Nam”
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Translator: Le Khanh Linh
Content writer: Nguyen Linh Chi
Instructor: Nguyen Minh Co
Admin: Lawyer Thuan
[1] Article 3.2 Circular 06/2019/TT-NHNN.
[2] Article 5.2 Circular 06/2019/TT-NHNN.
