New Circular on guiding foreign exchange control of foreign direct investment (“FDI”) activities in Vietnam
Posted on Aug 12, 2019 in Foreign Direct Investment by VILAF
The State Bank of Vietnam’s (“SBV”) issuance of Circular No. 06/2019/TT-NHNN (“Circular 06”) on 26 June 2019, to take effect on the 6th of September 2019, ushers significant changes in the current regulatory framework governing foreign exchange in direct investment activities in Vietnam. Despite Vietnam’s continued efforts at improving the investment environment and streamlining the regulatory framework on foreign exchange over the past years, the implementation of Circular 19/2014/TT-NHNN dated 11 August 2014 (“Circular 19”) – the predecessor of Circular 06 – has presented certain challenges and difficulties to implementing entities and stakeholders alike, and it is precisely to address these challenges that Circular 06 was issued.