ADDING SOME OF ENTITIES ALLOWED TO USE FOREIGN EXCHANGE IN VIETNAM’S TERRITORY

Pursuant to Circular No. 03/2019/TT-NHNN comes into force from May 13, 2019:

–  Adding some of entities being foreign investors shall be entitled to deposit, escrow foreign currency for bank transfer when participating in auctions in the following cases:

• Purchasing shares at a state-owned enterprises undergoing equitization approved by the Prime Minister;
• Purchasing shares, capital contribution of the State at state-owned enterprises, enterprises with state capital undergoing divestiture approved by the Prime Minister;
• Purchasing shares, capital contribution of state-owned enterprises investing in other enterprises undergoing divestiture approved by the Prime Minister.

–  In the case of successful auction, the foreign investors are allowed to transfer the investment capital in accordance with laws on foreign exchange management to pay for such payment of shares, capital contribution. In case of unsuccessful auctions, the foreign investors shall be transferred abroad the amount of foreign currency deposited, es-crowed after subtracting the arising expenses (if any).

Best regards,