Vietnamese banking regulations in August 2014

In August 2014, State Bank of Vietnam issued key banking regulations as follows:

1. The first Vietnamese banking regulations in August 2014

Circular 16/2014/TT-NHNN dated 1 August 2014 of SBV providing guidance on use of foreign currency account, Vietnam dong account of residence and non-residents in permitted bank, will go in force from 15th Sep 2014.
This Circular has a key point that any residual amount of the foreign currency cash which the organization withdrew for staff to go overseas to work, but was not fully expended, may be re-deposited in its foreign currency account upon presenting the custom declaration within 60 days from entry date.

2. The second Vietnamese banking regulations in August 2014

Circular 19/2014/TT-NHNN dated 11 August 2014 of SBV providing guidance on foreign exchange control in foreign direct investment activities in Vietnam, will go in force from 22th September 2014.
A key point of this Cicular is that capital account (foreign currency and VND) is used for receipt and disbursement of the short, medium and long-term foreign and domestic loans.

3. The third Vietnamese banking regulations in August 2014

Circular 21/2014/TT-NHNN dated 14 August 2014 of State Bank of Vietnam (SBV) providing the guidelines on scope of foreign exchange services, conditions, procedures for SBV’s approval will be effective from 15th October 2014.
The one new point to be noted is that credit institutions shall prepares a file for conversion of existing License into  Decision on amendment or written approval on limit time by the State Bank in accordance with the provisions of this Circular within 12 (twelve) months period from the effective date of this Circular.

4. The fourth Vietnamese banking regulations in August 2014

Circular 23/2014/TT-NHNN dated 19 August 2014 of State Bank of Vietnam  (SBV) providing guidance on open and use of ordinary account, will be effective from from 15th October 2014.
There are four points to be noted:
- Authorization for the use of ordinary accounts shall be approved by the bank.
- Individuals who have full 15 years of ages to 18 years of ages, have not lost civil act capability or have not limited civil act capability and have their own property, are allowed to open their account.
- Application for the opening of ordinary account requires additional information about chief accountant (or accountant), individual information.
- Ordinary account may be closed if it is not maintained its minimum balance and does not operate for a long time.

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