International Money Transfer Policy: Vietnam
Jan 21 2022International money transfer processes and limits are mandated by local regulatory authorities, as well as by banks and remittance service providers. Each country has its own specific environment. We are launching a series of articles about international money transfer regulations in different countries. Finding precise and trustworthy information is not an easy task, which is why some details are given may be approximate and may not always be relevant after the publication date.
International money transfer policy: Vietnam
Vietnam is still a cash society, which prefers cash to credit cards and e-money, but is experiencing increasingly large interest in e-money, especially crypto.
In Vietnam, as in many other Asia-Pacific countries, the policy is strict regarding international money transfers and is strictly regulated by the National Assembly and State Bank of Vietnam.
Cryptocurrency regulation
Vietnamese authorities are still considering their approach to regulating the cryptocurrency. In 2018 State Bank of Vietnam banned commercial banks and others from making transactions using cryptocurrencies, maintaining that using crypto puts users at risk of terrorism financing and all activities related to cryptocurrency became strictly illegal.
But the unstoppable interest from society, the Ministry of Industry and Trade opposition and the increasing global crypto movement have motivated Ministers to offer alternative policies which are under decision now. There currently is a buzz that Vietnam gets its first cryptocurrency exchange and there are many Vietnamese closed communities involved in crypto.
Bank wires out of Vietnam
If an individual wants to transfer money via bank transfer they will have to show confirmation of tax payments and a legal source of income within Vietnam.
- For individuals the valid sources of income are:
- Salaries earned in Vietnam, held in a Vietnamese bank account with showing of paid taxes;
- Personal funds held in a Vietnamese bank account and originally transferred from other countries;
- Funds from other tax-paid sources in Vietnam held in a Vietnamese bank account.
If a personal bank account in Vietnam has received funds from sources, not in the above list, the holder will face difficulties. Also, list of accepted purposes of transfer money overseas is limited: a) Study and medical healthcare; b) Business trips, tourism and travels; c) Payment of fees, charges abroad; d) Grants provided for relatives e) Immigration; g) some others but with legal legitimate proof documents.
If a company wants to transfer money abroad, it must provide documentation confirming payment of tax, in addition to further documents depending on what it wants to do with the money (for example paying foreign companies or individuals abroad for services provided abroad). These will usually require withholding taxes to be paid.
The difficulty is that not all local banks provide services for transferring money abroad and in such cases, customers usually go to foreign banks with branch offices in Vietnam, such as ANZ, HSBC or Citibank.
Bank wire limits and fees
The maximum amount that can be transferred abroad depends on the reason for transferring the money and the specific regulations of each bank. According to an assessment carried out by the Vietnamese financial comparison platform TheBank, the most open available remittance policy shows that for many types of transfer in many Vietnamese banks the limits are USD 25,000 per person per year. At the same time, according to the government’s Decision №1437/2001/QD-NHNN, transferring money abroad for settlement is regulated at USD 50,000 per person per year. If the amount is over 50,000 USD, many specific documents must be provided.
On average, based on research carried out by the bank, banks charge fees of 0.2% + USD 25.
Online payment regulation
Based on legal documents dated to 2017, the government has set limits for transferring money abroad for different types of online payment transactions: for some type of transactions for individuals the limits are
Sources:
LinkedIn - Transferring Money from Vietnam to Abroad: Options for Foreign Individuals and Companies
Conbeo - ATM Fees and Limits in Vietnam
Besticoforyou - Vietnam Still on the Fence Regarding Cryptocurrency Regulation
Bitcoin News - Vietnam at Crossroads on Cryptocurrency Regulations | Regulation Bitcoin News
Vn Express - Vietnamese prefer cash to credit cards when travelling abroad
The Bank Vietnam - Nên mở thẻ tín dụng ngân hàng nào tốt nhất 2020
IATA - Viet Nam Customs, Currency & Airport Tax regulations details
Finder - Best way to send money to Vietnam
The Bank Vietnam - Các cách chuyển tiền ra nước ngoài thông dụng nhất hiện nay
Have you liked us on Facebook yet? Are you following us on Twitter and Instagram? Join STICPAY on LinkedIn!