Within the territory of Vietnam, can we denominate contracts in USD ?

DMS Law office in Danang, Vietnam advise 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 ? 

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)./.

Contact us:

Phone: 0914 165 703 

Email: dmslawfirm@gmail.com

DMS Law firm in Vietnam
Director
(Signed)
Lawyer Do Minh Son