New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols, reported the Vietnam News Agency (VNA). The new circular will regulate the opening and use of Vietnamese dong-denominated accounts for foreign investors in order to conduct foreign indirect investment activities in Vietnam. The amended draft circular will simplify procedures for opening indirect investment accounts of foreign investors, regulate the opening of online indirect investment accounts and allow foreign investors to open many indirect investment accounts corresponding to their granted securities transaction codes. According to the draft circular, foreign indirect investment activities in Vietnam are carried out in accordance with the provisions of the country's laws on investment securities and other relevant laws. All revenue and expenditure of transactions related to foreign indirect investment activities in Vietnam by foreign investors must be carried out through Vietnamese dong-denominated a ccounts, the draft circular stated. The balance in indirect investment accounts of a foreign investor cannot be transferred to term deposits and savings deposits. Source: Emirates News Agency