Vietnam*

PROFILE CONTENTS
}}
INTRODUCTION 2
LEGAL AND REGULATORY

TAXATION 7
BANKING 11
PAYMENT INSTRUMENTS

13

PAYMENT SYSTEMS

15

CASH MANAGEMENT

16

ELECTRONIC BANKING

18

TRADE FINANCE

19

USEFUL CONTACTS

21

* Guides specifically designed for treasury managers offering a detailed picture of the banking and cash management arrangements for an extensive range of locations.
Please note the information is of a general nature only and is subject to change. It does not constitute financial, legal, tax or other professional advice.

Country Profile

VIETNAM

INTRODUCTION
}}
General
Capital/Other major cities:
Area:
Population:
Language:
Currency:
Country telephone code:
Weekend:
National holidays:
Source: www.goodbusinessday.com.

Business hours:
Banking hours:
Stock exchanges:
Leading share index:

Hanoi/Ho Chi Minh City, Da Nang, Hai Phong, Can Tho

331,210km2
93.4m
Vietnamese
Vietnamese dong (VND)
84
Saturday and Sunday
2nd half 2015 2 Sep
2016 1 Jan, 712 Feb, 18 Apr, 2, 3 May, 2 Sep
07:3016:30 (MonFri)
07:3016:30 (MonFri)
Ho Chi Minh Stock Exchange, Hanoi Stock Exchange
VN Index

Government
Legislature
}}Communist state with a unicameral National Assembly (Quoc Hoi).
}}National Assembly 498 members elected to serve five-year terms.
}}The president is elected by the National Assembly every five years.
Head of state
}}Truong Tan Sang, president since 25 July 2011.
Political leader
}}Nguyen Tan Dung, prime minister since 27 June 2006
}}Nguyen Phu Trong, secretary general of the Communist Party since
19 January 2011.

Sectoral distribution of GDP (% of GDP)

Agriculture
Industry
Services

19.3%
38.5%
42.2% (2013 estimate)

Please note that the information contained in this document is of a general nature only and is subject to change whether for economic, political, social or other reasons. It is not intended to be
comprehensive and does not constitute financial, legal, tax or other professional advice on which you should rely. Accordingly if you are planning any business activity in the country or taking, or
refraining from any action on the basis of the information in this document, you must obtain your own independent professional advice.
The materials contained in this document were assembled in January 2015 (unless otherwise dated) and were based on the law enforceable and information available at that time. We make no
representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in
connection with the use of, or any reliance on, this document or the information contained within it.

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Country Profile

VIETNAM

Economy

2009

2010

2011

2012

Exchange rate* (VND/USD)**

17.065

18.613

20.510

20.828

10.07

13.14

16.95

NA

NA

Interest rate (lending rate)** (%)

Unemployment (%)

2014

2013

2015

Q2

Q3

Q4

Year

Q1

NA

21.064

21.246

21.246

20.898

NA

12.23

NA

8.60

8.32

8.16

8.67

NA

NA

NA

NA

NA

NA

NA

NA

NA

Consumer inflation*** (%)

+ 7.1

+ 8.9

+ 18.7

+ 9.1

+ 6.6

+ 4.7

+ 4.3

+ 2.6

+ 4.1

+ 0.7

GDP volume growth*** (%)

+ 5.4

+ 6.4

+ 6.2

+ 5.2

NA

NA

NA

NA

NA

NA

GDP (VND tr)

1,809

2,158

2,780

3,245

3,584

NA

106

116

136

156

NA

NA

GDP (USD bn)

GDP per capita (USD)

1,202

1,302

1,507

1,716

NA

NA

BoP (goods/services/income) as % GDP

12.3

10.5

6.2

+ 0.5

NA

NA

* Official rate. ** Period average. *** Year on year.

Sources: IMF, International Financial Statistics, May 2015 and 2014 Yearbook; and World Bank Data.

Country credit rating

Fitch Ratings rates Vietnam for issuer default as:
Term

Local currency
rating

Foreign currency
rating

Short

Long

BB

Long-term rating outlook

BB
Stable
Source: www.fitchratings.com, June 2015.

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Country Profile

VIETNAM

LEGAL AND REGULATORY

}}
Central bank
}}Established in 1951, the State Bank of Vietnam operates in accordance with the
2010 Law on the State Bank of Vietnam.

Bank supervision
}}The State Bank of Vietnam supervises the banking sector within Vietnam.

Resident/non-resident status
}}A company is considered resident in Vietnam if it is incorporated in or has its
place of effective management in Vietnam.

Bank accounts
}}Foreign exchange accounts can be held by residents both domestically and
abroad. Residents require prior approval from the State Bank of Vietnam to
hold foreign exchange accounts abroad. Resident domestic currency (VND)
accounts cannot be held abroad, but are convertible into foreign currency.
}}Non-resident bank accounts are permitted in both foreign and domestic
(VND)currency.
}}Interest can be offered on current and savings accounts.
}}Overdraft facilities are available to residents.

Reporting
}}All transactions between resident and non-resident companies and all
transactions on the accounts held by resident companies abroad must be
reported by resident companies on a monthly, quarterly and annual basis.
}}Transactions relating to foreign direct investment capital are also required to
be reported by resident companies.
}}Monthly reports must be submitted by the 12th day of the following month.
Quarterly reports must be submitted by the 12th day of the month following
the quarter.
}}Annual reports should be submitted by 31 March of the following year.
}}In addition, companies engaging in foreign loans must register details of
transactions with the central bank no later than 30 days from the signing of the
letter of guarantee. If an entity is engaged in borrowing from abroad they are
required to report details of the performance of these loans to the Ministry of
Finance and the State Bank of Vietnam.
}}Transactions data must be submitted to the General Statistics Office, via
provincial level offices. The General Statistics Office forwards the data to the
State Bank of Vietnam for balance of payments purposes.

Exchange controls
}}Vietnam is a member of the Association of Southeast Asian Nations (ASEAN)
and the Asia-Pacific Economic Cooperation (APEC).
}}Vietnam has established bilateral payment arrangements with Belarus,
Cambodia, China, Laos and Russia.
}}The Vietnamese dong (VND) is Vietnams official currency. The USD/VND
exchange rates quoted by banks must remain within the current trading band
of +/-1% from the daily fixing set by the State Bank of Vietnam.

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VIETNAM

}}Credit institutions are permitted to carry out forward and swap transactions,
with maturities ranging from three days to one year, between VND and foreign
currencies.
}}Exchange controls are administered by the State Bank of Vietnam.
}}Non-residents generally require authorisation to carry out foreign exchange
transactions within Vietnam.
}}Individuals must notify the customs authorities when importing or exporting
over VND 15 million in domestic currency banknotes and/or over the
equivalent of USD 5000 in foreign currency banknotes.
}}Credit institutions are permitted to make foreign-currency loans to residents,
although the borrower must satisfy regulatory conditions. Credit institutions
must submit residents foreign-currency loan applications to the State Bank
ofVietnam.
}}Borrowers are also required to make a spot FX deal with the lender, except
when the loan is for the purpose of a transaction that requires foreign-currency
settlement.
}}Non-resident investors are permitted to purchase as much as 49% of a resident
issuers shares, although there are certain exceptions. Non-residents are not
permitted to sell equities in Vietnam.
}}Residents are permitted to issue debt securities abroad although prior approval
from the relevant regulatory authority is required. Residents are not permitted
to buy debt securities from abroad.
}}Non-residents are not permitted to issue debt securities in Vietnam.
}}Residents (with the exception of state-owned companies) require prior
approval from the State Bank of Vietnam before purchasing credit from
nonresidents.
}}A permit from the Ministry of Planning and Investment is required for all
investment abroad. The companies involved are required to open a foreign
exchange account at an authorised bank and these accounts (which are to be
used for investment abroad) are required to be registered with the State Bank
of Vietnam.
}}Indirect investment by non-residents must be carried out in VND. Any foreign
currency used in non-residents indirect investment must be converted into
VND before the investment can take place. Foreign indirect investment by a
non-resident entity must be done through an indirect investment account
opened at a bank licensed in Vietnam.
}}Residents outward investment must be routed through dedicated foreign
currency accounts and require an offshore investment certificate.
}}Prior approval from the government, the Ministry of Planning and Investment
or the Provincial Peoples Committee is required for all foreign investment.
Foreign investors must open specific foreign exchange accounts (at banks
authorised to provide them) to be used for all their investments in Vietnam.
}}Vietnamese credit institutions require prior approval from the State Bank of
Vietnam before they can open accounts abroad and must register all loans to
non-residents with the central bank.

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VIETNAM

Anti-money laundering/counter-terrorist financing

Supplied by BCL Burton Copeland (www.bcl.com). Data as at January 2015.

}}Vietnam has implemented anti-money laundering legislation (Articles 250 and

251 of the Penal Code, as amended, the Anti-Money Laundering Law 2012
and Decree No 116/2013/ND-CP on the Prevention and Combating of Money
Laundering). The State Bank of Vietnam and the Ministry of Finance have also
issued related Circulars, most recently No 35/2013 and No 31/2014.
}}Vietnam is a member of the Asia/Pacific Group on Money Laundering (APG).
}}Vietnam has established a financial intelligence unit, the Anti-Money
Laundering Department (AMLD), under the State Bank of Vietnam.
}}Account opening procedures require formal identification of the account
holder and beneficial owners.
}}Individuals conducting occasional transactions of VND 300 million
(approximately EUR 10,400 or USD 14,000) must be identified.
}}All foreign currency exceeding USD 7000 and gold of more than 300grams must
be declared to the customs authorities upon arrival and departure.
}}All financial institutions must record and report suspicious transactions within
48 hours to the AMLD. If criminal activity is suspected, reports must be made
within 24 hours. Financial institutions in the broadest sense must report all
single or multiple cash transactions performed in one day by an individual
or organisation, with an aggregate value exceeding VND 200 million or its
equivalent in foreign currency or gold, to the AMLD. The same rule applies
to cash transactions exceeding VND 300 million or its equivalent in foreign
currency or gold performed in relation to savings accounts.
}}All records must be maintained for a minimum of five years from the date of
the closing of the account or the completion of the last transaction.

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Country Profile

VIETNAM

TAXATION
}}
All tax information supplied by Deloitte Touche Tohmatsu (www.deloitte.com) and Deloitte Highlight, 2015.

Resident/non-resident
}}Residence is not defined, but a corporation generally is considered to be
resident if it is incorporated in Vietnam.
}}All companies and other legal entities incorporated and carrying on a business
in Vietnam are subject to various local indirect taxes and corporate income tax
(CIT). They are also required to apply Vietnamese Accounting System Standards
(VASS) and Vietnamese Accounting Standards (VAS). These are generally based
on International Accounting Standards, with some modifications.
}}Foreign companies carrying on business in Vietnam without setting up a legal
business presence may be taxed under a foreign contractor withholding tax
(FCWT) regime, which mainly comprises of value added tax (VAT) and CIT.
They need to pay the same corporate taxes as local companies if they meet the
conditions of a resident business, and register under the relevant business laws
in Vietnam.
}}For corporate tax purposes, there are no differences between the tax rules
applicable to businesses owned by Vietnamese nationals and foreign companies.

Tax authority
}}General Department of Taxation.

Tax year/filing
}}The standard fiscal year is the calendar year. Different fiscal years are allowed,
provided that the fiscal year-end is a quarter-end. Corporate taxpayers must
notify local tax authorities for formal financial reporting and tax filing purposes.
}}Provisional quarterly corporate income tax returns are not required as from
1 January 2015. Instead, a company is required to make quarterly provisional
corporate income tax payments based on estimates. An annual declaration/
filing must be made within 90 days after the fiscal year-end date. Any shortfall
in excess of 20% between provisional corporate income tax payment and
annual corporate income tax liability is subject to late payment penalty.
}}Consolidated returns are not permitted; each company with independent legal
status is required to file a separate return.

Corporate taxation
}}Residents are taxed on worldwide income; non-residents are taxed only on
Vietnamese-source income. Foreign-source income derived by residents is
subject to corporation tax in the same way as Vietnamese-source income.
}}The standard CIT rate is 22% for any business incorporated in Vietnam, to be
reduced to 20% from 1 January 2016.
}}Preferential rates of 10% and 20% are available for companies that meet
specified criteria based upon industry sectors and locations. The preferential
rates are available for 15 and ten years respectively.
}}A CIT exemption period of up to four years is available, followed by a 50% CIT
reduction period for up to nine years. The tax holiday is assessed and applied
to companies satisfying specific conditions (i.e. industries and locations which
the government wishes to promote).

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VIETNAM

}}Oil and gas businesses, and other sectors exploiting rare and precious natural
resources, are taxed at rates from 32% to 50%, subject to the specific decision
of the Ministry of Finance on a case-by-case basis.
}}There is no surtax or alternative minimum tax.
}}Vietnamese CIT is applied at the national level, with no further local taxes.
}}Losses may be carried forward to offset taxable income for up to five years after
the year in which the losses are incurred. The carryback losses is not permitted.
Losses from transfers of real property and investment projects are allowed to
be offset against profits from operating businesses in the same tax period.
Financial instruments
}}Under the CIT regulations, turnover in respect of derivative financial services
should be determined as proceeds from the provision of such services (e.g. by
brokers/banks) and performed within any tax assessment period.
Interest and financing costs
}}Interest expenses relating to financing the business using interest-bearing debt
due to a lack of paid-up share capital will not be deductible upon calculating CIT.
}}Other than the transfer pricing rules and the above restriction, there are no
particular rules that disallow the deduction of certain interest and other
financing costs in Vietnam.
Foreign exchange
}}Vietnamese CIT regulations stipulate that all realised gains/losses, and
unrealised gains/losses on accounts payable, are treated as taxable/deductible.
Other unrealised foreign exchange gains or losses are non-taxable and
nondeductible.

Advance tax ruling availability

}}Advance tax rulings are available in Vietnam. An enterprise can submit an
official application to the tax authorities for a ruling.

Capital gains tax

}}Generally, capital gains made by an enterprise in Vietnam will form part of the
taxable income of the enterprise, and will be taxed at the standard CIT rate. No
incentive CIT rate, exemptions or reduced rates apply to capital gains.
}}The transfer value is based on the actual price according to the transfer contract.
A deemed fair market value will be used if no contract price is available or if the
price stated in the contract is deemed to be not at arms length.
}}The taxable gain is determined as the excess of the sales proceeds less costs
and transfer expenses.
}}A specific capital gains tax, called capital assignment profits tax (CAPT), is
imposed on gains made by foreign companies on the transfer of interests in a
foreign invested or Vietnamese company. The rate of the CAPT is 22%.
}}The disposal of an investment in a Vietnamese company requires approval from
the licensing authorities.

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VIETNAM

Withholding tax (subject to tax treaties)

Payments to:
Resident companies
Non-resident companies

Interest

Dividends

Royalties

Other income

None

None

None

None

5%

None*

10%

10%*

* A withholding tax of 5% (corporate tax) and 5% (VAT) generally applies to technical service fees paid to a non-resident. The corporate tax may be exempt under a
tax treaty.

}}Foreign Contractor Withholding Tax (FCWT) is imposed on income from the

provision of goods and services from overseas organisations (except for pure
trading transactions), which comprises corporate income tax and VAT at a total
combined rate of 0.115%.

Tax treaties/tax information exchange agreements (TIEAs)

}}Vietnam has tax treaties with over 60 countries.

Thin capitalisation
}}Under current regulations, there are no restrictions on the capital, specific loan
ratios, or minimum capital requirements for foreign-owned enterprises, except
for some industries such as construction and real estate.

Transfer pricing
}}Related-party transactions must be identified and declared annually using
prescribed forms, which must be submitted together with the annual CIT return.
}}Companies are required to make a full self-assessment of their profits
calculated on an arms-length basis, and must prove that the pricing method
adopted is indeed arms length.
}}The following methodologies are permitted: comparable uncontrolled price,
resale price, cost plus, comparable profit and profit split, although no priority
of methods exists. The taxpayer must establish that it is using the best method
appropriate under the circumstances. Contemporaneous documentation is
required. The tax authorities can adjust profits of the pricing strategy is found
not to be at arms length.
}}The definition of related parties includes a control threshold as low as 20% (or
10% in some cases).
}}Enterprises are required to maintain transfer pricing documentation to support
the arms-length nature of related party transactions. This must be submitted
within 30 days, if requested by the tax authorities.
}}Advanced pricing agreements are available.

Stamp duty
}}Stamp duties of 0.520% are assessed on the transfer of housing and land
(i.e. certain types of buildings and land), means of transportation (i.e. all types
of motorised vessels/boats, automobiles and motorcycles), shotguns and
sporting guns.

Other taxes
}}Companies exploiting natural resources, including water, are subject to natural
resources tax (NRT) at various rates from 0% to 40%.
}}Business registration tax (commercial licence tax) is levied annually on
all business enterprises and ranges from VND 1 million to VND 3 million,
depending on the type of business.

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VIETNAM

Cash pooling
}}Vietnam has no specific tax rules for cash pooling arrangements.

Real property tax

}}The municipal authorities levy tax (e.g. land rental, land use fees, etc.) on the
use of real property.
}}Other than stamp duty there is no tax on the transfer of real estate.

Sales taxes/VAT (incl. financial services)

}}The standard VAT rate is 10%; rates of 0% and 5% are applicable to the export
of certain goods/services and the provision of certain essential goods and
services, respectively.
}}There is a wide range of VAT-exempt goods and services (e.g. certain types of
agricultural production, medical services, education and training, etc.).
}}Special sales tax (SST) is applicable to the production and import of certain
goods and the provision of certain services (e.g. alcohol, motor vehicles, petrol,
tobacco, certain air-conditioners, gambling, massages, golf clubs, lotteries,
etc.). SST rates range from 10% to 70%.
}}Preferential import duty rates of 0135% apply to goods imported into
Vietnam and originating from countries with most favoured nation trading
status withVietnam.
}}Special preferential import duty rates ranging from 0% to 135% apply to
goods from several countries which have free trade agreements (FTAs)
with Vietnam, including CEPT (i.e. ASEAN countries) and other FTAs (i.e. the
ASEANJapan Free Trade Agreement, the ASEANIndia Free Trade Agreement,
the ASEANChina Free Trade Area Agreement, the ASEANKorea Free Trade
Agreement, and the ASEANAustralia and New Zealand Free Trade Agreement).
}}A duty is charged on natural resource exports at rates up to 45%, while an
export duty is commonly applied on scrap and natural resource export.

Financial transactions/banking services tax

}}There are no specific financial transactions/banking services taxes in Vietnam.

Payroll and social security taxes

}}There is no payroll tax payable by employers.
}}Employers and employees are subject to statutory social security contributions
(employers at a rate of 18% and employees at a rate of 8%). These contributions
are limited to the lower of the employees total contracted remuneration or
VND 21 million per month (equivalent to USD 1000).
}}Both employers and employees are required to make a contribution for health
insurance (employers at a rate of 3% and employees at a rate of 1.5%).
}}The unemployment insurance system applies to Vietnamese citizens working
under labour contracts with an indefinite term, or with a definite term of
1236 months, with employers that have at least ten individuals in their
organisation. The compulsory unemployment insurance contribution is 3%, of
which the state, employers and employees each contribute 1%.

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BANKING
}}
Major banks

Total assets (USD millions)

31 December 2013

Bank
Agribank

29,539*

Vietinbank

27,310

BIDV

25,984

Vietcombank

22,222

Saigon Commercial Bank

8,577

* Data as at 31 December 2012.

Source: www.accuity.com, September 2014.

Overview
}}There are 46 domestic banks operating in Vietnam, comprising five stateowned banks, four joint venture banks and 37 urban joint-stock banks. There
are also five foreign banks, 51 branches of foreign banks and 50 representative
offices of foreign banks.
}}Vietnams banking sector is dominated by the five state-owned banks Vietnam
Bank for Agriculture and Rural Development (Agribank), Commercial Bank for
Foreign Trade of Vietnam (Vietcombank), Bank for Investment and Development
of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade
(Vietinbank), and the Housing Bank of Mekong Delta. Of these, Agribank is the
largest in terms of assets, capital, customer-base and branch network. It controls
approximately 20% of the banking sectors total assets.
}}State-owned banks account for approximately 50% of bank lending.
}}Foreign banks play an active and prominent role in the countrys banking
sector, controlling approximately 10% of the banking sectors total assets. In
order to open a branch in Vietnam, a foreign bank is required to pay
USD 15 million.
}}Foreign banks wishing to invest in domestic joint-venture commercial banks
must acquire prior approval from the relevant governing agencies in their
respective countries.
}}Non-resident investment in domestic banks is restricted to 30%, with strategic
foreign investors restricted to 20% stakes and non-strategic foreign investors
restricted to 15% (raised from 15% and 10% in February 2014).
}}Notable foreign investment in Vietnamese banks include: the Bank of
Tokyo-Mitsubishi UFJs 19.7% stake in VietinBank, BNP Paribass 20% stake in
Oricombank, the Commonwealth Bank of Australias 20% stake in VIB, HSBCs
19.4% stake in Techcombank, and Maybanks 20% stake in ABBank. Mizuho
Corporate Bank owns 15% of Vietcombank, Standard Chartered Bank owns
15.4% of ACB and Socit Gnrales 20% stake in SeABank.
}}In January 2014, the State Bank of Vietnam announced plans to consolidate
and restructure the countrys banking sector; it anticipates the number of
commercial banks operating in the country to fall to approximately 17 by the
end of 2017. This announcement is part of a long-term government initiative to
reform and restructure the countrys banking sector.
}}In 2014, PG Bank announced it was to merge with Vietinbank, Sacombank,
Vietnams ninth largest bank by assets, announced it was to acquire Southern
Bank, and Maritime Bank announced its intentions to merge with the Mekong
Development Bank. In Jauary 2015, Vietcombank announced it was to merge
with Saigonbank. Further mergers and acquisitions are expected to follow.

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}}Effective 1 February 2015, commercial banks will be restricted to holding

shares in a maximum of two other credit institutions only, with each stake not
exceeding 5% of the total equity of that institution. Banks will have 12 months
to meet the new requirements.

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PAYMENT INSTRUMENTS
}}
Cash
}}Cash remains the primary payment medium in Vietnam, particularly for
lowvalue retail and commercial transactions.
}}As part of the governments plans to increase the volume of electronic
payments and to reduce the volume of cash in circulation, the use of cash by
government agencies for payments and the payment of securities and other
high-value purchases with cash is restricted.

Credit transfers
}}Credit transfers are used by the government and companies for salary
and supplier payments. The government aims to pay 80% of all salaries
electronically by the end of 2015, up from approximately 50% during 2011.
}}High-value (equal to or above VND 500 million) and urgent VNDdenominated
credit transfers are cleared and settled via the HVP, the national RTGS system,
on a same-day basis.
}}Low-value (below VND 500 million) and non-urgent credit transfers are cleared
via the LVP.
}}In 2013, 208.5 million credit transfers were processed, with a total value of
VND 38,963,307 billion.

Direct debits
}}Direct debits are available in Vietnam and are used for low-value recurring
payments such as utility bills.
}}There is currently no centralised payment system for direct debits in Vietnam.
Payments between creditors and debtors at different banks are exchanged
bilaterally between banks.
}}In 2013, 1.5 million direct debit payments were processed, with a total value of
VND 834,368 billion.

Cheques
}}The cheque is not a widely used as a payment instrument in Vietnam.
}}When used, cheques are used by individuals for low-value retail transactions.
}}Intra-city/intra-province cheque payments are cleared by provincial payment
centres operated by the State Bank of Vietnam. Funds are typically available to
beneficiaries within three days.
}}Inter-province cheque payments are cleared and settled via the State Bank
of Vietnams National Processing and Settlement Centre. Funds are typically
available to beneficiaries within four to seven working days.
}}In 2013, 512,737 cheques were processed, with a total value of
VND 114,723 billion.

Card payments
}}The use of payment cards in Vietnam has increased rapidly in recent years.
}}There were approximately 76.13 million payment cards in circulation in
Vietnam at the end of 2014. Debit cards account for approximately 91.7% of all
payment cards in circulation, credit cards 4.0% and pre-paid cards 4.3%.
}}In 2013, 20.7 million payments transactions were processed, with a total value
of VND 121,295.00 billion.

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}}Banks in Vietnam issue domestic (SmartLink) and international (China UnionPay

and MasterCard) payment cards.
}}All card-issuing institutions are members of the Smartlink, Banknet or VNBC
card payment schemes. Banknet and Smartlink have recently merged their
operations, creating a centralised card switching centre processing card
payments through point-of-sale (POS) terminals, the internet and mobile
phones, in addition to transactions made at ATMs.
}}There were 15,808 ATMs and 159,067 POS terminals in Vietnam at the end of
2014, an 8.3% and 33.5% respective increase on 2013 figures.
}}In 2013, 526.6 million ATM transactions were processed, with a total value
of VND 994,943 billion. During the same period, there were 24.3 million POS
transactions, with a total value of VND 127,740 billion.
}}The Smartlink, Banknet and VNBC card payment schemes have all linked their
ATM networks, providing for the interoperability of all ATMs in Vietnam.
}}The government has launched a plan to increase the number of POS terminals
to 250,000 by 2015.
}}Electronic money schemes are available in Vietnam in the form of reloadable
pre-paid cards. There were 3.2 million pre-paid cards in Vietnam at the end of
of 2014. E-cards are typically used for low-value transactions, and to pay utility
bills. Vietcombank and eight other institutions are authorised to issue e-money
cards in Vietnam.
}}VinaPays MrTopUp service is one of the biggest pre-paid card distributors
in Vietnam. In addition, five banks are authorised to take part in VinaPays
Vcash scheme, which allows individuals and companies to make and receive
payments, pay bills and make purchases online.

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PAYMENT SYSTEMS
}}
Type
}}IBPS (Inter Bank Payment System) is owned and operated by the State Bank
ofVietnam.
}}IBPS is subdivided into two systems:
}}HVP (High-Value Payment), a real-time gross settlement (RTGS) system; and
}}LVP (Low-Value Payment), a deferred net settlement system.
In 2014, the HVP processed 9.7 million transactions with a total value of
VND 44,919,250 billion, an increase of 27.5% and 38.1% respectively on 2013
figures. During the same period, the LVP processed 38.7 million transactions,
with a total value of VND 1,652,274 billion, an increase of 34.7% and 24.1%
respectively on 2013 figures.
}}Banks can, in addition, process their payments bilaterally via the internal
clearing systems of Vietnams six largest banks or via the State Bank of
Vietnams manual paper-based clearing system.
}}Transactions processed via a local branch of the State Bank of Vietnam
intracity/intra-province payments are cleared by the State Bank of Vietnams
branch-operated provincial payment centres while inter-province payments
are cleared by the State Bank of Vietnams National Processing and Settlement
Centre.

Participants
}}There are approximately 2353 direct and non-direct participants in the IBPS.
}}The paper-based clearing system has 230 participants.

Transaction types processed

}}The HVP processes all high-value (i.e. equal to or above VND 500 million in
value) VND interbank transfers.
}}The LVP processes low-value (below VND 500 million) electronic credit and
debit items.

Currency centre holidays*

2nd half 2015
2016

2 Sep
1 Jan, 712 Feb, 18 Apr, 2, 3 May, 2 Sep
* Source: www.goodbusinessday.com.

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CASH MANAGEMENT
}}
Domestic
Notional pooling
}}Notional pooling in VND and foreign currencies is permitted between resident
and non-resident entities.
}}Cross-border notional pooling is not permitted due to regulatory restrictions.
Cash concentration
}}Cash concentration is permitted for resident entities.
}}Cash concentration may only take place across VND-denominated accounts
within the same entity.
}}Cross-border cash concentration is not permitted due to regulatory restrictions.

Cross-border
}}Cross-border payments instructions are routed via SWIFT and settled through
accounts held with correspondent banks abroad or, in the case of international
banks, via their own networks.

Lifting fees
}}Lifting fees are applied on funds transfers between resident and non-resident
accounts.

Short-term investments
}}Interest can be paid on current, savings and demand deposit accounts.
}}Time and demand deposits are available to residents and non-residents in VND
or major foreign currencies.
}}Certificates of deposit are issued by commercial banks in Vietnam in VND or
major foreign currencies. Typical maturities range from one month to oneyear.
}}Commercial paper is available in Vietnam in the form of promissory notes
issued by resident entities to domestic investors. Restrictions are in place on
foreign investment in domestically issued promissory notes.
}}Treasury bills are issued by the State bank of Vietnam. Maturities are for 28, 56,
91 and 182 days.
}}Repurchase agreements are available from some state-owned banks.

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Custody and securities settlement

Information provided by www.globalcustody.net and www.vsd.vn, 2015.

Depository
}}Vietnam Securities Depository (VSD).
Comment
}}The VSD provides central registration and depository services for the securities
of listed and unlisted public companies and government securities.
}}Securities transfer is generally by book-entry transfer between the depository
accounts of selling and buying members, with simultaneous adjustment of
ownership information.
}}Securities delivery at the VSD and cash transfer at the settlement bank (Bank
for Investment and Development of Vietnam) are carried out simultaneously,
under delivery versus payment principles.
BIS Model
}}Model 3.
Settlement cycle
}}T+3 for equities.
}}T+1 for bonds.

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ELECTRONIC BANKING
}}
}}Electronic banking is available in Vietnam and offered by the majority of the
countrys banks.
}}There is no bank-independent electronic banking standard in Vietnam; each
bank offers its own proprietary system for corporate banking purposes.
}}Services available include balance and transaction reporting and payment
initiation.
}}Internet banking is offered by Vietnams leading international and domestic
banks. Vietnam has an estimated internet penetration rate of 42.9%.
}}Mobile banking is relatively new in Vietnam; the first mobile banking service
was launched by Smartlink in 2013 in partnership with the Singapore-based
mobile banking solutions company, Tagit.
}}Vietnam had a mobile penetration rate of 145% at the end of 2013. Over a thrid
of all subscribers own smartphones.

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TRADE FINANCE
}}
Trading partners*
Import
Export

China 25.8%, South Korea 13.9%, Japan 10.4%, Singapore 6%, Thailand 5.2%,
USA 4.3%.
USA 17.8%, Japan 11.8%, China 11.2%, South Korea 5%, Malaysia 4.1%.
* The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013
(www.cia.gov/library/publications/the-world-factbook/index.html).

Imports
Documents
}}In order to import goods into Vietnam, a customs declaration, commercial
invoice, bill of lading, packing list, terminal handling receipts, inspection reports
and, in certain cases, certificate of origin or health certificate are required.
Licences
}}Licences with quotas are required from the Ministry of Trade for importing
some motorcycles, guns and bullets.
}}Quantitative controls may be imposed temporarily on imports by the Ministry
of Trade in conjunction with the Ministry of Planning and Investment.
}}Quantitative restrictions are imposed on the import of goods such as eggs,
tobacco, sugar and salt.
Taxes/tariffs and other fees
}}Vietnam is a member of ASEAN and the ASEAN Free Trade Area (AFTA).
}}As a member of ASEAN and AFTA, Vietnam has committed to lower
interregional tariffs of between 0% and 5% through the Common Effective
Preferential Tariff (CEPT) scheme. Certain goods such as sensitive agricultural
products are exempt from this.
}}Vietnam is expected to eliminate all its tariffs on trade with its fellow ASEAN
member states by 2015.
}}ASEAN has also established free trade agreements with Australia, India, Japan,
New Zealand and South Korea.
}}ASEAN is negotiating a free trade agreement with the European Union.
}}Vietnam is a member of the 21-member Asia-Pacic Economic Cooperation
(APEC) forum, which intends to lift all trade and investment barriers in the region.
}}There are 45 import tariffs rates applied over three categories: preferential tax
rates, special preferential tax rates and ordinary tax rates.
}}Imports from countries with Most Favoured Nation (MFN) status in trade
relations with Vietnam receive preferential tax rates.
}}Special preferential tax rates apply to imports from countries that have
signed a special preferential tariff agreement with Vietnam, such as free trade
agreements and tariff alliances.
}}All other imports are subject to ordinary tax rates, the highest being 135% (for
cigarettes and cigars). The average MFN import rate currently stands at 10.4%.
}}Import tariffs are not levied on most types of machinery, equipment and
medicine, or on certain imports from foreign companies included in the Law on
Foreign Investment.

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Prohibited imports
}}A negative list (of products that may not be imported) is in operation.
}}It is prohibited to import certain commodities into Vietnam, in order to protect
fauna and flora, and for national security and moral reasons.

Exports
Documents
}}In order to export goods from Vietnam, a customs declaration, commercial
invoice, bill of lading, packing list and, in certain cases, certificate of origin or
health certificate are required.
Licences
}}Licences with quotas are required for exporting textile and clothing products,
rice, timber products and some minerals.
Taxes/tariffs and other fees
}}Taxes are levied on some exports from Vietnam.
Prohibited exports
}}A negative list (of products that may not be exported) is in operation.
}}It is prohibited to export rare species of fauna and flora, forest timber, nonmedical drugs, toxic chemicals, and military equipment.

Financing imports and exports

Imports
}}There are no financing requirements for imports.
Exports
}}There are no financing requirements for exports.

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USEFUL CONTACTS
}}
State Bank of Vietnam

www.sbv.gov.vn

Leading banks:

Bank for Investment and Development of Vietnam

www.bidv.com.vn

Commercial Bank for Foreign Trade of Vietnam

Saigon Commercial Bank

Vietnam Bank for Agriculture and Rural Development

Vietnam Joint Stock Commercial Bank for Industry and Trade

www.vietcombank.com.vn
en.scb.com.vn

ASEAN Bankers Association

www.agribank.com.vn
www.vietinbank.vn

www.aseanbankers.org/ABAWeb/

Ministry of Finance

www.mof.gov.vn

Ministry of Industry and Trade

www.moit.gov.vn

Chamber of Commerce and Industry of Vietnam

www.vcci.com.vn

Vietnam Trade Promotion Agency

www.vietrade.gov.vn

Vietnam Industry and Trade Information Centre

www.asemconnectvietnam.gov.vn

Vietnam Insurance Corporation

www.baoviet.com.vn

Ministry of Planning and Investment

www.mpi.gov.vn

Department of Planning and Investment of Ho Chi Minh City

www.dpi.hochiminhcity.gov.vn

Vietnam Association of Financial Investors

www.vafi.org.vn

Vietnam Investment Review

www.vir.com.vn

Agency For Enterprises Development

www.business.gov.vn

Central Institute for Economic Management

www.ciem.org.vn

State Securities Commission of Vietnam

www.ssc.gov.vn

Ho Chi Minh City Stock Exchange

www.hsx.vn

Hanoi Stock Exchange

www.hnx.vn

Vietnam Securities Depository

www.vsd.vn

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