Opening bank accounts is one of the first decisions that small business owners in Vietnam need to make. This comprehensive guide provides an overview of bank accounts in Vietnam and focuses on the needs and considerations of small business owners. It covers various account types, including direct investment capital accounts (DICA) and payment accounts, and explains the relevant restrictions and documentation requirements.

For newly established foreign-invested enterprises (FIEs), after obtaining investment and enterprise registration licenses, they can generally open capital bank accounts and payment accounts in both foreign currency and Vietnamese dong simultaneously. The Vietnamese dong payment account can receive bank interest based on the current interest rate structure.

A DICA is typically used by those considering Vietnam as a destination for future investment to finalize initial investment banking arrangements. On the other hand, FIEs can open multiple payment accounts in foreign currency or Vietnamese dong as required.

The guide provides detailed information on the purpose and usage of different account types. Direct investment accounts in foreign currency or Vietnamese dong are used for capital injection, transferring funds, increased capital expenditure, receipt of financing via loans, disbursement of loan payments, and distribution of dividends and profits. Loan accounts in foreign currency or Vietnamese dong are opened for borrowing foreign loans when the loan currency does not match the current DICA’s currency.

Payment accounts, both in foreign currency and Vietnamese dong, are essential for transferring or receiving payments and handling profits. Foreign currency payment accounts can be used for remittances, revenues from exports, payments for imported commodities and services, overseas transactions, and investment in securities and commercial papers issued in foreign currency. Vietnamese dong payment accounts facilitate local business activities, including receiving revenues, making payments, purchasing foreign currency, and handling other income and expenditure transactions related to investment in Vietnam.

The guide also emphasizes the necessary documentation for opening bank accounts, such as bank account opening forms, documents proving legal status, investment or business licenses, loan contracts, and other relevant papers. It highlights the importance of selecting government-approved banks and outlines certain restrictions, including institutional selection limitations and currency limitations.

Understanding these aspects of bank accounts in Vietnam is crucial for small business owners to optimize their operations effectively. By following the guidelines and considering the restrictions and requirements, small business owners can make informed decisions when it comes to banking in Vietnam and ensure smooth financial transactions for their businesses.