EXITING FOREIGN INDIVIDUALS SHALL ONLY BE PERMITTED TO BUY BORDERING COUNTRIES’ CURRENCIES WITH AN AMOUNT EQUIVALENT TO VND 20 MILLION OR LESS

In the Legal Update dated May 26, 2023, ATA Legal Services has summarized Decree 89/2016/ND-CP, amended and supplemented by Decree 23/2023/ND-CP on conditions for an organization economic agents to obtain the license to act as an agent for exchange of bordering countries’ currencies (hereinafter referred to as the “Agents”). Recently, on June 16, 2023, the State Bank of Vietnam issued Circular No. 04/2023/TT-NHNN (“Circular 04”) guiding the operation and responsibilities of the Agents, specifically:

(The activities of buying and selling bordering countries’ currencies are hereinafter referred to as “buying and selling currencies”).

1. Currency exchange activities of the Agents

1. The Agents could only use Vietnamese dong to buy cash of individual.
2. Particularly, the Agents located in pre-exit areas of international or bilateral border gates may sell in cash for Vietnamese dong with the amount not exceeding VND 20,000,000 to foreign individuals who have completed exit procedures. The Agents are only allowed to resell an amount equivalent to over VND 20,000,000 if the individual can present the currency-exchanged invoices (receipts) stamped by an authorized credit institution or an Agent within the validity (within 90 days from the date on the invoices (receipts)) and can only resell within the exchanged amount stated on the invoices (receipts).
3. The Agents must announce the currency exchange rate of the bordering country in cash with Vietnam dong, and prooceed the currency exchange accordingly.

2. Retainable cash limit of the Agents

1. Retainable cash limit of bordering countries’ currencies: not exceeding an amount equivalent to VND 40,000,000 (Forty million Vietnamese dong);
2. The entire amount of cash in the bordering countries’ currencies purchased (besides the retainable cash amount) must be sold by the Agent to the authorizing credit institution at the end of each working day. In case the Agent's location is far from the authorizing credit institution, or it is difficult to travel, the resale period may be extended but must not exceed 07 working days;
3. In case there is a need to increase the retainable cash limit (including the case where the maximum amount is exceeded), the Agent must carry out procedures for adjusting the Agent Registration Certificate.

Circular 04 shall take effect from August 1, 2023.