Vietnam is an emerging destination for businesses. The country has sidestepped economic collapse and emerged as a winner after its 1980s restorative policies. The double-digit economic growth and numerous legislative changes point to a stable environment for offshore company formation. Moreover, Vietnam’s banking sector has established itself particularly well. The increase in FDIs and the implementation of digital banking make opening a Vietnam bank account for foreigners a viable option. Let’s dive deeper and learn more about why opening a bank account in Vietnam is suitable for you and your enterprise.
Why Open a Vietnamese Bank Account?
Ever since Vietnam’s dynamic restoration policies have put the country at the forefront of growth, its banking sector has displayed a fast-paced rise. Let’s have a look at a few factors that make opening a bank account in Vietnam a good choice:
Growing Digital Banking
Most commercial banks in Vietnam have robust mobile applications and online banking features. You can easily access your accounts from anywhere and make payments online seamlessly.
Foreign Direct Investment (FDI)
Opening a bank account in Vietnam enables a seamless flow of foreign direct investments. Thus, as a business owner, you can easily transmit capital from your home country to Vietnam without restrictions. Moreover, you can reap the benefits of starting a business in Vietnam through FDIs in the country.
Regulatory Compliance
Opening a bank account in Vietnam is a vital business compliance. It is essential for every firm operating within the borders to open a Vietnamese bank account. Moreover, a foreigner also needs to comply with capital, ownership, and licensing-related requirements.
Efficient Transactions
The ability to transact internationally transforms every business. Opening a bank account in Vietnam allows seamless financial transactions across international borders.
Currency Management
There are single-currency bank accounts for foreigners in Vietnam. Thus, you need to open a new account for every currency. You can easily segregate and manage various currencies by opening a separate bank account in Vietnam for foreigners.
Access to Loans and Financial Services
A Vietnam bank account for foreigners is crucial for investing and working in the country. As a foreign business owner, opening a Vietnamese bank account allows you to get a loan and obtain financial services from both local and international banks.
Types of Bank Accounts for Foreigners in Vietnam
There are various Vietnam bank accounts for foreigners. Here’s a quick overview of the most common ones:
The capital account is a vital bank account for foreigners in Vietnam. As the name suggests, its only purpose is to transfer capital from the owner to the business. A company can open a capital account within 90 days of incorporation. Moreover, you can use it to increase the capital. A firm can only open a single capital account, and the main currency is typically USD. However, the previous account must be shut down to open a new account.
The current account is useful for recurring business transactions. You can manage all the payments and receipts in the business through this account. Aside from this, a firm can also invest in other companies through this account. A Vietnam bank account for foreigners allows only single-currency transactions. Therefore, to transact in multiple currencies, you must open separate accounts. An entity can have an unlimited number of currency accounts.
It is an essential bank account for foreigners in Vietnam, allowing you to transact in foreign currencies. Through this account, you can easily repatriate profits to your home country. Since there are only single currency accounts, when opening a bank account in Vietnam, you should select the base currency for transactions.
There are two types of deposit accounts: foreign currency deposit accounts and Vietnamese Dong deposit accounts. With a Vietnamese Dong deposit account, you can also deposit and save revenue, transact domestically, maintain cash deposits, and pay salaries and allowances to employees through it. Aside from this, you can easily obtain loans through it. On the other hand, foreign currency deposit accounts allow you to hold and manage funds in different currencies. It is a vital bank account for foreigners in Vietnam as it allows you to transfer money in and out of the country.
Direct Investment Account
This account is primarily for foreign-owned companies. While opening this bank account in Vietnam, you need to select the base currency. It can be either a foreign currency or the Vietnamese Dong. It is helpful for transactions related to foreign direct investments. You can also purchase foreign currency through this account.
Steps to Open a Vietnamese Bank Account
Follow the steps below to open a Vietnam bank account for foreigners. Let’s dive deep:
Step 1: Select a Bank
The first step to opening an international bank account is choosing the right bank. Choosing a bank depends on your business and service requirements. Moreover, Vietnam has a list of local and international banks, including HSBC, Citibank, and local banks such as VietinBank, Vietcom Bank, or BIDV. Most of these banks allow you to open a Vietnam bank account online.
Step 2: Fill Out the Form
Fill out the application form with all the mandatory details such as the company's name and address, business sector, legal representative details, account holder information, required signatories, and the company's stamp and seal.
Step 3: Document Submission
Submit the following documents to open a bank account in Vietnam:
- Investment/Business Licence
- Certified Copy of Company Charter
- Board of Directors Resolution
- Resolution of Authorized Signatories to the Account
- Certified Copy of Original IDs
- Account Opening Form
- Tax Code Registration
Step 4: Make the Initial Deposit
Once you have submitted the form and documents, make the initial deposit. The deposit can vary based on the account type.
Vietnam’s growing banking sector and strong foreign policies make it a favorite among entrepreneurs for offshore banking. With numerous banks and account types to choose from, opening a Vietnam bank account for foreigners can be challenging. Appointing an offshore business consultant, such as Business Setup Worldwide, enables you to navigate the complex requirements. We have over 8 years of experience in providing company formation services worldwide. Our experts possess in-depth knowledge of the Vietnamese banking environment and ensure that every formality is taken care of. Contact us today and begin your international transactions.
