On December 30, 2022, the State Bank of Vietnam (SBV) issued Circular 20/2022/TT-NHNN providing guidance on outbound one-way money transfers from Vietnam and payments, transfers for other current transactions of residents being organizations or individuals (Circular 20). Below is a summary of key points regarding this activity:
1. Regulations on outbound one-way money transfers from Vietnam:
1.1. Purpose and Transfer Limit:
For Organizations
i. Sponsorships, Financial Aid:
The specific amount of foreign currency allowed for transfer will depend on the documentation related to the purpose. However, if the transfer is intended for sponsoring or providing financial aid to programs, funds, or projects aimed at supporting and promoting development in the fields of culture, education (scholarship sponsorship), and healthcare, the amount transferred per transaction will be limited to 50,000 USD (or an equivalent amount in another foreign currency).
ii. Payment of rewards to non-residents abroad for participation in programs or competitions held in Vietnam:
The specific amount of foreign currency allowed for transfer will depend on the documentation related to the purpose, with no specific limit imposed.
iii. Other purposes:
Including allocating sponsorship funds to members abroad participating in projects or scientific research topics and refunding sponsorships for projects carried out in Vietnam according to agreements with foreign parties. The specific amount of foreign currency allowed for transfer will depend on the documentation related to the purpose, with no specific limit imposed.
For Individuals
i. Studying or receiving medical treatment abroad:
Based on the expenses listed in the foreign party's notification; in the absence of such a notification, the bank will determine a reasonable amount based on the individual’s needs and the purpose, ensuring it does not exceed the average per capita income (GDP per capita) of the country where the individual resides (as updated annually by the World Bank).
ii. Business trips, tourism, or family visits abroad:
Based on the individual's reasonable needs and the appropriate purpose, the bank will decide, ensuring the amount does not exceed the average per capita income (GDP per capita) of the destination country (as updated annually by the World Bank).
iii. Payment of fees and charges to foreign countries:
Based on the expenses listed in the foreign party's notification.
iv. Money transfer in case of inheritance:
Based on the value of the assets the heir is entitled to.
v. Providing financial support to relatives abroad:
Based on the individual's reasonable needs and the purpose of covering living expenses and ensuring the stability of the recipient's life abroad, the amount transferred must not exceed the GDP per capita of the country where the recipient resides (as updated annually by the World Bank).
vi. Money transfer in the case of emigration:
Based on the value of the assets owned by the emigrant in Vietnam before acquiring foreign nationality or being granted permission for foreign residence. For immigration-related expenses, the transferred amount will be based on the cost listed in the foreign party's notification.
vii. One-way money transfer for other legitimate needs:
Circular 20 does not specify limits for such cases. The money transfer will follow the relevant bank's internal rules and policies regarding legitimate purposes and allowed transfer limits.
1.2. Regulations on the Source of Funds
The foreign currency transferred abroad by an organization must come from one of the following sources: (i) Foreign currency in a payment account; (ii) Foreign currency in a term deposit account; (iii) Foreign currency purchased from authorized banks.
The sources of foreign currency used for individual transfers abroad include: (i) Foreign currency in a payment account; (ii) Foreign currency in a term deposit account; (iii) Foreign currency purchased from authorized banks; (iv) Foreign currency from savings; (v) Self-owned foreign currency.
2. Regulations on Payments and Transfers for Other Current Transactions from Vietnam to Abroad
Circular 20 further clarifies that "payments and transfers for other current transactions" of organizations and individuals include payment transactions related to:
i. International goods trading activities such as temporary import/export, re-export/re-import, transit, goods trading agents, goods processing, goods trading through the Commodity Exchange.
ii. Social insurance contributions and social insurance payouts.
iii. Payment of insurance/reinsurance fees, compensation payments, and insurance benefits, etc.
iv. Legally effective court or arbitration rulings or decisions of competent Vietnamese authorities.
v. Fines or compensation for property damage or personal injury that is not covered by insurance.
Payments and transfers for the above-mentioned current transactions must be made through authorized banks. The specific amount of foreign currency allowed for transfer will depend on the documents related to the purpose, with no specific limit imposed.
3. Responsibilities of Organizations and Individuals in Outbound Money Transfers from Vietnam
3.1. Provide all necessary information regarding the organization or individual purchasing, transferring, or carrying foreign currency, as well as the beneficiary organization or individual, to the bank. They must take legal responsibility for the authenticity of the information provided to the bank.
3.2. Present the required documents and records when purchasing, transferring, or carrying foreign currency abroad for personal one-way transfers and for payments or transfers related to other current transactions, as regulated by the authorized bank.
3.3. Present documents and records proving the purpose of the sponsorship, the source of the funds, the approval decision on the sponsorship amount by the legal representative of the organization, a written commitment on the legality of the funds, and other documents as required by the authorized bank when purchasing, transferring, or carrying foreign currency for one-way transfers by organizations.
3.4. Resident organizations transferring money abroad for sponsorship purposes must purchase and transfer foreign currency through one authorized bank during the entire process of sponsoring each program, fund, or project.
3.5. Resident organizations transferring money abroad for sponsorship or aid from voluntary contributions are responsible for presenting the following: A document on the mobilization and receipt of voluntary contributions for sponsorship or aid; a list including the names, addresses, and contribution amounts of the contributing organizations and individuals; documents proving the amount of funds received from voluntary contributions; a written commitment from the organization that it has only opened one account at one authorized bank to receive voluntary contributions; and other documents as required by the authorized bank.
3.6. Take legal responsibility for the authenticity of all documents and records presented to the authorized bank.
3.7. The same set of documents may not be used to purchase, transfer, or carry foreign currency in excess of the amount specified in the relevant documents, or to exceed the foreign currency limits stipulated in this Circular at one or multiple authorized banks.
3.8. Use the foreign currency in cash purchased from the authorized bank for its intended purpose and in compliance with legal regulations.
3.9. It is prohibited to purchase, transfer, or carry foreign currency abroad for purposes such as money laundering, terrorism financing, proliferation of weapons of mass destruction, fraud, or other illegal activities.
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