Emerging Markets Rates and Currencies Handbook

Foreign investors are required to obtain the securities trading code issued by the Vietnam Securities Depository and to invest in securities in public companies, public funds in the securities market in Vietnam, including listed securities on stock exchanges and unlisted securities of public companies/public funds in the OTC market. For cash account, foreign investors are required to open an indirect investment capital cash account (IICA) in VND for indirect investment activities in Vietnam. Deal Management Rollover: Yes, provided that client submits written request enclosed with the supporting documents to justify the objective reason, applicable only in case of change in FCY payment plan. FX swaps are used for rollover/extensions, but amend tenor of FX transaction only, not amending for other purposes. Unwinding: Yes, Provided that client submit explanation letter (or supplemental agreement is executed by client and the bank). However, client is not permitted to gain from the unwinding trade. Therefore, the bank will apply the worse-off rate being the prevailing market rate or the original contract rate whichever is worse for client. Early Maturity: Yes, provided that client submits written request enclosed with the supporting documents to justify the reason, applicable only in case of change in FCY payment plan. FX swaps are used for early maturing, but amend tenor of FX transaction only, not amending for other purposes. Trade Flows Following supporting docs required for purchase of FCY against VND and against other FCY on trade date for SPOT value trades of common Import Payments. • Invoice • Sales Contract • Customs declaration • Others (if requested) For other types of payments, supporting document requirements may vary. For Forward transactions, one/some of the above documents are required on trade date as long as that the document can prove the underlying FX exposure for the forward transaction, including: Purpose, Currency, Amount, and Payment Date/Payment Term. Full supporting document set is required on settlement date. Purchase of FCY is required to be transferred out immediately (i.e: (i) for FX spot: within 2 business days from FX trade date but not later than Payment Date of the underlying transaction, (ii) for FX Forward: within 4 business days from the settlement date of FWD transactions), except for dividend repatriation in FDI companies which can be kept for 30 calendar days provided that the shareholders, being the beneficiaries of dividend, authorize the subsidiary in writing to make dividend payments on their behalf. Beyond that date, if clients can’t submit all sufficient supporting document to transfer the fund out, the bank will have to cancel the whole deal and the worse-off rate will be used (original rate or prevailing market rate) whichever is less favorable. The fully signed FX Confirmation must be returned to the bank via email or fax by latest by the next business day of the FX trading date and client is required to return to the bank the original signed and sealed copy (hard copy) within 10 (ten) business days from the day of transaction. Documentations between client and the bank (including but not limited to: Dealing Authorization, Settlement Instruction, etc.) may need to include Vietnamese translation. Capital Flow and FDI The following documents must be submitted to the bank Capital injection • Investment license: the bank will check to monitor the cumulative capital injection amount to ensure that it does not exceed the registered/approved investment amount. Inter-company offshore loan • If tenor <1 year, client needs to submit loan contract • If tenor >1 year, client needs to submit loan contract and the central bank’s certification on offshore loan registration. Additional supporting document may be required, subject to the nature of the entity. The direct investment capital flows must be executed through a direct investment capital account (DICA) For offshore loans: depend on the borrower type, funding is required to go through DICA or offshore borrowing account. Note: Intercompany Loan is the loan which offshore company lends to onshore company. Capital Market Investments Supporting document and proof of legitimation is required for all transactions (Listed securities: broker confirmation; unlisted securities: contract of private deal, approval from relevant authorities if applicable. Additional documents may be required, subject to the nature of actual transactions). The investment needs to be performed via indirect investment capital account Repatriation/dividend payment for direct investment