26/07/2021
BANKING REGULATIONS IN VIETNAM
Hi everyone,
To help you -foreigners understand how the banks are working in Vietnam in general, I would like to give you some “key” points as below:
The banking regulations for foreigners who are living in Vietnam are strict. It aims to avoid undeclared work by foreigners, laundering of funds and to respect exchange controls.
1. Bank account opening
It is possible to open a bank account in Vietnam for a foreigner, or even two: one in currency, one in VND. Some banking agencies are reluctant to do but if you live and work here, it won't be a problem.
Simple tourists or those who do not have an official working permit can open a bank account as well. But in this case, money can only come from abroad in the form of currency. The Vietnamese bank account is only an expenditure account.
Foreign currency accounts give interests according to international rates, so close to zero at the moment. A vnd account gives around 5-6%/year currently.
Documents needed:
- To open an individual account: Just bring your passport with valid visa
- Joint accounts are rare in Vietnam but are possible for mixed couples, with restriction in use. Check with your bank.
- For a company: business license, regulation of the company, stamp.
2. Fund your bank account
The foreign currency account is funded by transfers that you make from abroad (usually your bank account in your homeland). Be careful to make the transfer with the full name / surname which appears on your passport, otherwise the bank will not be able to validate the transfer! These currencies can be withdrawn from the cash account, exchanged for vnd or credited to your vnd account at the daily exchange rate. Depending on the organization of each bank, exchange rates may be better for accounts opened in major cities, the best being in Hanoi.
If you work in Vietnam with an official working permit, your company must transfer your wages to your bank account. For that, it will provide the bank with numerous documents (copy of the working contract, passport, working visa, etc.). These binding regulations are made to ensure that your incomes is declared by your company and that your taxes will be paid.
The strongest constraint is that you cannot put cash in your bank accounts, neither in currency, nor in vnd.
Vietnamese are not allowed to transfer money to your bank account.
3. Expenses from your bank account
You have access to all forms of means of payment for expenses (bank card, domestic transfer, withdrawal at the bank, etc.). Buying currency is not allowed. Transfers abroad are very tight due to exchange controls and the inconvertibility of the D**g abroad.
Normally, any payment exceeding 20 million VND must be made by bank transfer.
4. Electronic banking
With electronic banking, all remote transactions can be made 7/7 and 24 hours a day.
Internet banking is very effective in Vietnam. Generally speaking, customer protection is less than in western countries, so be careful with your passwords and the use of your bank card. Ordinary bank cards can be easily copied ... prefer cards with code entry when you go shopping.
Bank statements are available on internet banking. Unless expressly requested, there are no paper statement.
5. Financial Investments
To make investments, you do not have access to the Vietnamese savings book but you can make term deposits. The regulations tightened in 2019. You must now physically go to your bank agency to make a deposit. The maturity of the investment cannot exceed the expiry date of your visa.
Investment rates are around 5- 6 %/year. Rates depend on the duration of the investment.
Some private banks offer higher rates, but be careful! Protection of deposits is not guaranteed by law, unlike some western countries.
There is no interest tax in Vietnam on investments!
6. Borrow money
You can not borrow money as a foreigner in Vietnam!
What can I do for you?
I can help you to open a bank account, to solve some problems you can face at banks due to lack of understanding. Feel free to contact me!
Have a nice week!
Pearl
