Within the territory of Vietnam, can we denominate contracts in USD ?
Good afternoon DMS Law office in Vietnam! Please advise me about denominating contracts. A local company signs contract with a 100% FDI company in Vietnam to provide service in the territory of Vietnam, can both parties agree to denominate the contract in US dollars ?
Hi!
Within the territory of Vietnam, except for the cases allowed to use foreign exchange specified in Article 4 of Circular No. 32/2013/TT-NHNN dated December 26, 2013, all transactions, payments, listing, advertisements, quotations, pricing, prices in contracts, agreements other similar forms (including conversion or adjustment of prices of goods and services, the value of contracts and agreements) of residents and non-residents are not allowed to be conducted in foreign exchange (Article 3 Circular No. 32/2013/TT-NHNN dated December 26, 2013).
Civil transactions with objectives and contents which breach legal prohibitions or which contravene social ethics shall be invalid. Legal prohibitions mean provisions of law which do not permit entities to perform certain acts (Article 123 The Civil Code No. 91/2015/QH13 dated November 24, 2015).
Therefore, according to the provisions of Vietnam law, all transactions, payments, listing, advertisements, quotations, pricing, prices in contracts, agreements other similar forms (including conversion or adjustment of prices of goods and services, the value of contracts and agreements) of residents and non-residents, in the territory of Vietnam, are not allowed to be conducted in foreign currencies (except for the cases allowed to use foreign exchange specified in Article 4 of Circular No. 32/2013/TT-NHNN dated December 26, 2013)./.
Consulting service:
Phone: 0914 165 703 or Email: dmslawfirm@gmail.com
Is it lawful to denominate contracts in USD ?
Prepared by: Thi-Ha Nguyen, ACCA | DMS Law firm in Vietnam Director (Signed) Lawyer Do Minh Son |
RELATING ITEMS
Foreign companies apply for bank accounts in Vietnam
08 May, 2020// Group: LAW ON BANKOversea company can apply for a business checking account in Vietnam
Is it possible for a company to borrow from other companies or individuals ?
21 Apr, 2020// Group: LAW ON BANKIs company, individual required to issue invoice on interest received from lending out to other company ?
Open and use direct investment capital account in foreign currency or in Vietnam Dong
21 Apr, 2020// Group: LAW ON BANKForeign direct investment enterprise is allowed to open one direct investment capital account in foreign currency and one in Vietnam Dong
Open VND account for foreign investor
21 Apr, 2020// Group: LAW ON BANKThe contribution of investment capital in Vietnam Dong by the foreign investors shall be made by transfer to the direct investment capital account
Open account in foreign currency for foreign investor
21 Apr, 2020// Group: LAW ON BANKThe contribution of investment capital in foreign currency by the foreign investors shall be made by transfer to the direct investment capital account