Question:
We are foreign company and looking for a long-term investment for our solar portfolio in Vietnam
My concern is lack of depth in forex market in Vietnam, whether our organisation will be able to take out profits in internationally accepted currency from Vietnam. It looks fine on the paper, the whole process listed on the government website. But is it practically possible?
Also, Will the banks have sufficient funds to pay us in internationally accepted currency.
Answer:
I am Lawyer of SB Law. I was entrusted to provide you legal advice on the following issue.
Under Vietnam Law, it is possible for you to take out profits in internationally accepted currency from Vietnam.
After settling applicable tax in Vietnam, you are free to take out your profit. Generally, if you wish to transfer your profit under internationally accepted currency, you shall have two following options:
Option 1: If you have foreign currency in your foreign currency account in Vietnam, you can transfer your foreign currency to abroad.
Option 2: If you do not have foreign currency but Vietnam Dong, you shall have to purchase foreign currency from licensed Banks in Vietnam in accordance with foreign exchange rate declared by such Bank at the time of transferring your profit. If you wish to purchase a large number of foreign currency, you shall have to contract with Bank on purchasing foreign currency in a long term. Then, based on the contract with you, Bank shall purchase foreign currency on Forex market to sell the same to you.
