LEGAL UPDATE - JUNE 2025 - DESIGNATED BANK ACCOUNTS FOR FOREIGN INVESTMENT INFLOWS

Foreign investments are typically classified as either direct or indirect. From the outset of foreign investment attraction, the Vietnamese government has established a framework to supervise and manage foreign capital inflows for both types. One key component of this framework is the banking account systems. In particular, an Indirect Investment Account (IIA) is used for indirect investments, while a Direct Investment Capital Account (DICA) is designated for direct investments. Using IIA or DICA primarily depends on the nature of the investments, such as trading securities on stock markets or acquiring capital in non-listed enterprises, as well as guidance periodically issued by the State Bank of Vietnam.

In a recent development, the State Bank of Vietnam issued Circular No. 03/2025/TT-NHNN. While Circular No. 03/2025/TT-NHNN provides for guidance on opening and using bank accounts in Vietnamese dong for foreign  indirect investment (IIA), it also outlines key revisions for DICA. Circular No. 03/2025/TT-NHNN comes into effect on 16 June 2025.

For more details, please refer to the Legal Update here provided by RHTLaw Vietnam.