Foreign organization in Vietnam (company) implementing a new project in Vietnam. On the Investment Certificate, write the capital amount for the new project as 100,000 USD, equivalent to 2.3 billion VND. Currently, the company’s Vietnam Dong payment account has enough VND 2.3 billion to implement the new project.

Ms. NTL (Bac Ninh) asked, does the company have to transfer money from the company’s current account to the capital account to contribute capital to the project? Is it possible to use the money from the checking account to implement the project without going through the capital account?

According to Ms. L, if you switch from the current account to the company’s capital account, then switch back from the capital account to the checking account to get money to implement such a project is inadequate. The company in Vietnam has only 1 foreign currency direct investment capital account.

The concept of foreign direct investment (FDI) enterprises has been stipulated in Clause 2, Article 3 of Circular No. 06/2019/TT-NHNN dated June 26, 2019 of the State Bank guiding the management of foreign direct investment (FDI). foreign exchange management for foreign direct investment activities in Vietnam.

In Clause 1, Clause 3, Article 4 of Circular No. 06/2019/TT-NHNN stipulates:

"1. Foreign investors, Vietnamese investors may contribute investment capital in foreign currencies, Vietnam Dong according to the level of capital contributed by investors in the Investment Registration Certificate, ... other documents proving prove the capital contribution of foreign investors in accordance with the provisions of law;

… 3. The contribution of investment capital in money of foreign investors or Vietnamese investors must be done through the form of transfer to the direct investment capital account.

Clause 3, Article 11 of Circular No. 06/2019/TT-NHNN stipulates the responsibilities of authorized credit institutions: Reviewing, checking and keeping documents and vouchers consistent with actual transactions to ensure ensure that the provision of foreign exchange services to foreign direct investment enterprises and foreign investors is carried out for the right purposes and in accordance with the provisions of law.

Based on the above provisions, the case "foreign organization in Vietnam" that Ms. NTL mentioned is an FDI enterprise, so when implementing a new project without increasing investment capital in an existing project, the FDI enterprise increase charter capital in accordance with the law on enterprises. The additional charter capital contribution must be made through the direct investment capital account of that FDI enterprise.

When performing transactions, authorized credit institutions are responsible for reviewing, checking and keeping documents and vouchers consistent with actual transactions to ensure the provision of foreign exchange services is carried out. for the right purposes and in accordance with the provisions of law.