Opening a bank account in Vietnam is a key step for foreign investors and expatriates aiming to operate or invest in the country. It’s essential to understand the types of accounts needed, including direct investment capital accounts (DICA), and payment accounts in either foreign or local currency. Foreign-owned companies are required to open business bank accounts for capital management, tax purposes, and business operations upon establishment.
Having a well-established bank account ensures compliance with Vietnamese regulations, protects your business, and provides numerous operational benefits. If you’re looking to open a bank account in Vietnam for your business, this article serves as the most comprehensive guide to support your business journey in Vietnam.
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Why Open a Business Bank Account in Vietnam?
- Meet Tax Payment Requirements: Opening a company bank account is essential for meeting the mandatory requirements when paying taxes electronically. To facilitate tax payments from anywhere at any time, a business account linked to the tax authority is required. This enables you to avoid direct visits to the tax office, saving time and simplifying the process. It is also a mandatory step when registering for electronic tax payment under Vietnam’s tax regulations.
- Compliance with Transaction Regulations: If your company needs to make transactions exceeding VND 20 million, they must be paid through a domestic bank account. Specifically, business expenses over VND 20 million need to be transferred from your company bank account to be deductible when calculating CIT and VAT.
- Convenience and Efficiency: Opening a business account allows for easier and more efficient management of funds, saving time and costs when dealing with customers and handling financial transactions.
- Easier Financial Tracking: Managing and tracking your business’s spending is simplified with a company bank account. It also makes it easier to monitor financial issues within your company.
- Professionalism and Trust: Having a company bank account showcases your company’s professionalism, which is essential when building trust with business partners and customers.
Direct Investment Capital Accounts (DICA)
DICA in Foreign Currency or Vietnamese Dong
To open a Direct Investment Capital Account (DICA), the following documents may be required:
- Bank account opening form
- Notarized copies of documents proving legal status, including the Enterprise Establishment Decision and Business License or Investment License
- A copy of the investment approval in a foreign language and its translation into Vietnamese (if applicable)
- Tax code certificate and stamp registration (for foreign representative offices and branch offices)
- Passport of the legal representative or authorized person (for foreigners) or passport/ID card (for Vietnamese)
- Passport/ID card of the chief accountant
- Any additional documents required by the bank
Foreign-invested enterprises (FIEs) can use the DICA for various purposes, including, but not limited to:
- Capital injection or fund transfers
- Increased capital expenditure, funded from third-party countries
- Receiving financing via loans from foreign sources
- Foreign currency loans (including principal, interest, fees, and other related costs) borrowed from domestic and foreign banks, according to current regulations
- Disbursement of loan payments to third parties outside of Vietnam (including interest)
- Payment of dividends and other profits to shareholders, derived from Vietnam-based operations
Loan Accounts in Foreign Currency or Vietnamese Dong
Under Vietnamese law, foreign-invested enterprises (FIEs) must open loan accounts at authorized banks to borrow short-term, medium-term, or long-term loans when the loan currency differs from the currency of the existing Direct Investment Capital Account (DICA).
Depending on the type of loan (e.g., cash, fixed assets), each bank may have different requirements for the application dossier to open a separate loan account in addition to the DICA for loan-related purposes.
Payment Accounts
Foreign Currency Payment Accounts
Foreign-invested enterprises (FIEs) can open foreign currency payment accounts to transfer or receive payments and move profits into and out of the country. Generally, FIEs must exchange foreign currency for Vietnamese Dong (VND) by selling it to an authorized bank licensed for foreign exchange transactions.
FIEs can use the foreign currency in these accounts for the following purposes:
- Remittances from overseas
- Revenues from the export of goods and services overseas
- Payments for imported goods and services, including related costs
- Payment for commodities and services to individuals or organizations overseas
- Salary, bonus, and allowances for staff sent abroad
- Fees and interest from overseas
- Sale of foreign currency to credit institutions for acceptable reasons
- Other permitted transactions as regulated by Vietnamese law and the bank’s policies
Foreign-currency payment accounts can accrue bank interest based on the account type. For demand deposits or specialized accounts, interest is calculated based on actual deposit days and is added to the principal monthly or on the withdrawal date.
For fixed payment accounts, interest is paid at maturity. If the FIE does not withdraw the funds at maturity, both principal and interest will be transferred to a new account with a new term, based on the account holder’s request, or into the current account if no notice is provided by the account holder.
Vietnamese Dong Payment Accounts
Vietnamese Dong (VND) payment accounts are used for all transactions related to local business activities, including:
- Receipt of revenues in VND from transactions within Vietnam
- Payments in VND for expenses incurred in Vietnam
- Purchase of foreign currency from credit institutions authorized to transfer funds overseas
- Other income and expenditure transactions related to in-country business operations
How Do I Open a Bank Account for My Business?
Opening a bank account in Vietnam is a straightforward process if you follow the right steps. Here’s a quick guide to help you:
Choosing the Right Bank
The bank you choose can significantly affect your overall banking experience. Consider factors such as:
- Stability and Reputation: Research the bank’s history and customer satisfaction.
- Services Offered: Choose a bank that provides the services you need, including online banking and international transfers.
- Fees and Accessibility: Be mindful of banking fees, ATM access, and proximity to your home or workplace.
- International vs. Local Banks: For frequent travelers or those needing more extensive services, international banks like HSBC may be ideal. For more local, everyday banking, Vietnamese banks like Vietcombank or VietinBank are great choices.
Submitting Your Application
In most cases, you’ll need to visit the bank branch in person to complete your account application. Some banks, like HSBC Vietnam, allow you to start the process online, but you’ll still need to finalize it in person. When you visit, make sure to bring the following documents:
- Passport or ID card
- Proof of residence (lease agreement or utility bill)
- Visa or other residency documents
- Tax code (for residents)
Ensure all paperwork is correct to avoid delays in approval.
Making the Initial Deposit
Banks in Vietnam typically require an initial deposit to activate your account. The amount varies depending on the bank, so it’s best to inquire directly about the minimum required deposit. Generally, this deposit is free of charge and is necessary to activate your account.
Once the deposit is made, your account will be verified, and you’ll be notified when it is fully active. You can then start managing your finances, whether for receiving payments, sending money, or maintaining a minimum balance.
Some Common Vietnam Banks for Your Business
When opening a business account in Vietnam, consider your specific needs and the location of the bank branches. Below are some of the top banks to consider:
VietinBank
The largest state-owned bank in Vietnam, offering:
- Multi-currency trading (USD, EUR)
- Loan collateral options based on your account
- VND deposit insurance protection
- Account ownership transferability
Vietcombank
Known for its wide network of branches and ATMs, providing:
- Comprehensive credit and debit card services
- Modern online banking platform
- Widespread ATM access throughout Vietnam
HSBC Vietnam
A global bank with an extensive network offering:
- Overdraft protection
- International debit card services
- Exclusive discounts through HSBC Privilege Club
- Multi-currency trading (USD, EUR, GBP, AUD, and more)
- 24/7 customer support hotline
- Digital banking services
BIDV
One of Vietnam’s largest financial institutions, offering:
- Welcome incentives for new customers
- Customizable account features
- Comprehensive account options, including savings and business accounts
- Foreign exchange services
- Premium banking solutions
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Conclusion
Opening a bank account in Vietnam is an essential step for both expatriates and businesses looking to invest or operate in the country. By following the right steps, from choosing the right bank to submitting the necessary documents and making the initial deposit, you can ensure a smooth banking experience. Whether you’re managing personal finances or establishing a business, Vietnam’s banking system offers a range of options to suit your needs.
For expats and businesses seeking expert assistance in navigating the banking process, The Nest Asia offers tailored services to help you open a business bank account with ease. From understanding local banking regulations to providing support throughout the account opening process, The Nest Asia is here to guide you every step of the way, ensuring you can focus on growing your business and managing your finances effectively.
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The Nest Asia is a one-stop resource offering comprehensive information, practical relocation advice, cultural insights, valuable connections, and trusted services to help expatriates living in Vietnam navigate the transition, overcome challenges, and build a fulfilling life abroad. Starting your journey in a new country can often feel overwhelming. The Nest Asia is your trusted partner – we’re here to simplify that process and ultimately make Vietnam feel like home for you and your loved ones.
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Disclaimer: The Nest Asia is not an authorized provider of official government or non-government services. The information provided is intended for general guidance only. While we strive to offer accurate and timely information, we make no representations or warranties regarding its completeness or accuracy.
