Simplify the procedure for opening an indirect investment account.

From June 16th onwards, Circular No. 03/2025/TT-NHNN of the State Bank of Vietnam, regulating the opening and use of Vietnamese Dong (VND) accounts for indirect foreign investment in Vietnam, will come into effect, with a number of new provisions.

All investment transactions must be conducted through an account denominated in VND. (Illustrative image)

Specifically, the State Bank of Vietnam has just issued Circular No. 03/2025/TT-NHNN, replacing Circular No. 05/2014/TT-NHNN, aiming to reform administrative procedures, contributing to removing barriers and opening the door to attracting foreign capital into the stock market.

The circular regulates the opening and use of VND accounts for foreign investors who are non-residents conducting indirect investment activities in Vietnam.

The regulations apply to foreign investors, banks licensed to conduct foreign exchange business, and organizations and individuals involved in indirect foreign investment activities in Vietnam.

To simplify the procedure for opening indirect investment accounts, foreign investors no longer need to have their documents legalized by the consulate when opening an account, shortening the account opening time from several months to just a few days.

The circular requires that all transactions related to foreign indirect investment activities in Vietnam must be conducted through an indirect investment account, which is a VND payment account opened by the foreign investor at an authorized bank.

Balances in indirect investment accounts cannot be transferred to time deposits or savings accounts, in order to control capital flows and ensure transparency in transactions.

The issuance of Circular 03 is expected to standardize the process of opening and using indirect investment accounts in Vietnamese Dong for foreign investors. The new regulations not only enhance transparency and simplify administrative procedures but also create more favorable conditions for foreign capital to participate in the market.

This is considered a significant step forward, helping to resolve one of the bottlenecks in the roadmap to upgrade the Vietnamese stock market.

Source: https://hanoimoi.vn/don-gian-hoa-thu-tuc-mo-tai-khoan-dau-tu-gian-tiep-702941.html