According to the draft circular of the State Bank of Vietnam (SBV), non-resident foreigners can deposit savings in both local and foreign currency at commercial banks, a positive move not only to limit speculation in the market but also guarantee legal reights for non-residents presenting in Vietnam.
SBV has been collecting comments on the draft circular of term deposit transactions at credit institutions and foreign banks’ branches.
According to SBV, the regulation will allow non-resident foreigners to deposit savings in VND, foreign currency at commercial banks to limit hot capital flows, speculation in the currency market, as well as guarantee legal rights for non-residents presenting in Vietnam.
As per prevailing regulations, non-resident individuals are those who have been present in Vietnam including foreigners residing in Vietnam for less than 12 months; foreigners studying, treating, traveling or working for representative offices, executive offices, operation offices, diplomatic and consular representations of foreign legal units in Vietnam and they cannot open the interest saving account.
Whilst, foreign citizens and businesses that have legal person status and are present in Vietnam under the form of branches, representative offices, executive offices, operation offices, diplomatic and consular representations can open term deposit accounts in order to serve the activities of these subjects.
According to the draft circular, in order to deposit interest-rate savings, non-resident foreigners are only allowed to use VND, foreign currency on their VND payment account and foreign currency payment account.
The regulation is aligned with the direction of developing non-cash payment methods. This aims to manage foreign exchange, thus facilitating the management and supervision of state agencies.
Under the provisions of the Ordinance on Foreign Exchange, currently there has been no provision allowing foreign residents and non-residents to deposit savings in local and foreign currencies at credit institutions.
Experts said that if this new circular were issued, it would be a big step forward for Vietnam. Because in an era of flat world and global citizen, it is important for countries to remove the barriers.
Tags:
Tags:
The United Capital Management Joint Stock Company (Unicap) which manages investment funds will provide financial services to FLC and Faros in the near future.
Techcombank has announced that two separate legal entities managed by Warburg Pincus will invest over US$370 million into the Bank, subject to appropriate regulatory approvals.
In only the first two months of this year, the banking, financial services and insurance sector (BFSI) of Vietnam received up to US$1.45 billion worth of investment.
It is feared that the escalating trend of trade protectionism will hinder global growth and make many businesses struggle for survival.
According to the World Bank, remittances to Vietnam in 2017 are estimated at a record high of US$13.81 billion, increasing by US$1.9 billion, equivalent to 16% over 2016.
Within less than five months leading the Southeast Asia Joint Stock Commercial Bank (SeABank), Nguyen Canh Vinh has resigned from this position since February 8, 2018, for personal reason.
