4 minutes Setting Up a Bank Account in Vietnam
Opening a bank account in Vietnam is crucial when relocating or visiting the country for an extended period, whether for study, travel, work, investment, or residence, as it simplifies financial management and ensures a smooth stay. This becomes even more relevant if you plan to reside in Vietnam for an extended period, such as a year or longer.
Why you should consider opening a bank account in Vietnam?
Access to banking services in Vietnam for foreigners has improved in recent years, making it more convenient and affordable. While ATM withdrawals were once costly and currency exchange rates posed challenges, the government has taken steps to allow tourists and expatriates to open bank accounts in Vietnam. This open policy, introduced in a 2016 Vietnamese banking law that took effect in July 2019, is designed to attract foreign investors to the country by providing the opportunity for all foreigners to open accounts and use ATM cards after residing in Vietnam for at least one year, with a straightforward documentation requirement.
Essential documents for opening a corporate bank account in Vietnam
- Bank account application form
- Proof of the foreign company’s registration in Vietnam
- Identification documents for the authorized or legal representative, including a passport or valid ID
Types of bank accounts in Vietnam
Multi-currency bank account (USD, EUR, or other foreign currencies)
The primary benefit of opting for this bank account type is its convenience in transferring funds to an international bank. Consequently, many expatriates choose this option when sending money to their home countries. Typically, to be eligible for opening a foreign currency bank account in Vietnam, you will need to make a minimum deposit, often around 300 EUR or USD, depending on the specific bank’s requirements.
Domestic currency bank account (VND)
Compared to foreign currency accounts, the primary advantage of this account type is its convenience. It enables straightforward transactions with local businesses, and there are typically no fees for VND withdrawals from ATMs. Generally, to open a local currency bank account in Vietnam, a deposit is required, and like banks worldwide, it may involve maintaining a minimum balance.
Capital investment account
Overall, this account is designed for businesses to send and receive funds, with transactions falling into two categories:
- DICA (Direct Investment Capital Account): This is a foreign currency payment account, or local currency if necessary established by an authorized bank for conducting transactions related to direct foreign investments in Vietnam.
- ICA (Indirect Investment Capital Account): This account is in the local currency of a foreign venture capitalist and is held in a certified bank to facilitate authorized expense and revenue transactions for foreign indirect investments in Vietnam.
It is important to note that opening such an account requires a duly authorized local or commercial financial institution in Vietnam. This ensures that the bank is legally authorized to offer services and conduct foreign exchange transactions.
Transaction account
This bank account is ideal for day-to-day commercial transactions in Vietnam, covering a range of activities like ATM card usage, debit card transactions, cash deposits and withdrawals at bank branches, money orders, and checking services. Typically, this type of account, with the exception of savings accounts, does not accrue interest.
Bank charges
In certain situations, Vietnam banks may impose an initial account opening fee. These fees can vary between banks, and many banks do not explicitly disclose their cash withdrawal charges but instead display fee notices. Common fees include monthly service charges, internet banking fees and penalties for falling below the required account balance. Daily withdrawal limits at ATMs also vary by bank.
When using an overseas debit card, additional charges may apply, including withdrawal fees and the bank’s exchange rate. It is essential to verify whether a bank offers international money transfers, as not all banks in Vietnam provide this service. To simplify banking for foreigners, global banks like Citibank, Far East National Bank, Wells Fargo, Visa International, and JP Morgan Chase are recommended options.
Opening a bank account in Vietnam through PREMIA TNC
Establishing a company in Vietnam necessitates the compulsory opening of a corporate bank account irrespective of the industry. A corporate bank account is vital for ensuring sustainable management and growth and this is where PREMIA TNC can provide invaluable assistance. We offer access to a curated list of the top banks in Vietnam, tailored to meet your business’s specific requirements. With PREMIA TNC, the process of opening a corporate bank account in Vietnam becomes hassle-free and efficient.
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