VIDPVNV5

Payment Instructions

General instructions for international payments to banks in VIETNAM:

Overview

Information provided by the Beneficiary: Remitter should obtain all required bank information from the Beneficiary (e.g. SWIFT BIC or local bank code, account number, and beneficiary bank address).

Central Bank: For additional information, please refer to www.sbv.gov.vn.

Country Requirements/Restrictions

Payment Restrictions: FX Control Regulations, issued by the State Bank of Vietnam, are amended from time to time according to monetary control policies of the State.

VND is unable to be traded offshore due to its un-convertibility. Purchase of VND is not restricted, as such overseas remittance in foreign currencies can be converted easily for local payments. Purchase of foreign currency, for both domestic and overseas payments from Vietnam, is permitted subject to allowable purposes and required supporting documentations are submitted.

Domestic payment in foreign currency is restricted: Refer to Circular 32/2013 and Circular 16/2015 for eligible payments.

VND against USD rate is calculated based on USD/VND central exchange rate and trading band. The central exchange rate of VND against USD shall be fixed by reference to the weighted average exchange rate in the inter-bank foreign currency market, the exchange rate movements in the international market of currencies of some countries that have trading, borrowing, debt payment, significant investment relationships with Vietnam, macro-economic and monetary balances and goals of monetary policies.

USD is accepted for local payments, subject to certain requirements and supporting documents. USD payments into Vietnam for onward credit in VND will be converted by the remitting bank.

Payments cannot be made to Foreign Indirect Investment Accounts (FIIAs).

Additional Documentation: The beneficiary may be required to provide supporting documentation by the correspondent or beneficiary bank. VND in-country settlement requires no specific documentation. Foreign currency receipts of any amount are subject to explanation on nature/purpose of payment. Current accounts are used for underlying goods and services activities. Wholly and partially foreign enterprises are required to open a Capital account, which is reserved for capital and loan related transactions. Refer to Circular 06/2019 - FX control for foreign direct investment in Vietnam, Including Capital account, Circular 12/2014, 03/2016 and 05/2016 for foreign loan.

New Information

Tax codes are required when making payments to the local Vietnamese tax authorities (or equivalent). These tax codes relate to both the sender (Remitter) and the receiver (Beneficiary). The communication of a tax payment will usually occur between the tax authority and the remitter, and a unique tax code tax identifier number will be generated online for the remitter to use when initiating their payment. This code is needed by the local tax authorities in order to recognize that the payment relates to a specific beneficiary. VND is a zero decimal currency; payments must be entered as whole. Ensure amounts have no decimals to avoid rejection. Depending on the beneficiary bank, the value date for local clearing payments is within one business day.

Payment Formatting Rules for VND:

• Ordering Customer (SWIFT MT103 F50): Include account number, full name (no initials) and address of the ordering customer. Use of initials can delay receipt of funds by the beneficiary.
• Beneficiary Customer (SWIFT MT103 F59): Include account number, full name, and address of the beneficiary customer. Use of initials can delay receipt of funds by the beneficiary.
• Account formats follow the Standard Chart of Accounts regulated by the Central Bank. The simplest format should have the first four-digits in SCA format followed by the currency code and the number assigned by the bank.
• Beneficiary Bank (SWIFT MT103 F57): Include SWIFT BIC with branch identifier, full name and address of the beneficiary bank. Exact branch location must be included (e.g. Hanoi and Ho Chi Minh). If payment is being sent locally in VND, a local clearing bank code should be used instead of a SWIFT BIC. Local clearing bank codes must be 8 alphanumeric characters, with the 1st and 2nd representing the bank location.
• SWIFT BIC is 8 or 11 alphanumeric characters: xxxxVNxx or xxxxVNxxxxx.
• The beneficiary bank branch location and province must be included in the payment instructions.
• Reason for Payment (SWIFT MT103 F70): Purpose of payment must be clearly stated for each transaction in free format to prevent delays and/or rejection (goods, services, capital, loan, etc.).

IBAN: No

Correspondent Banks

Standard Settlement Instructions (SSI) contain the list of correspondent banks of PUBLIC BANK VIETNAM LIMITED for each currency.

Payment Tracking

To track a SWIFT cross-border payment to or from PUBLIC BANK VIETNAM LIMITED, you need a UETR code, reference number, amount, payment date, and currency. This information is typically found in an MT103 form.

Disclaimers

We are doing our best to demystify cross-border payments, however TrackMySwift is not responsible for any delays or losses related to usage of the information and services from our web site. Please contact your banks to receive a safe advise. Country-specific payment instructions have been prepared based on Global Wires Payments Formatting Requirements Guide from J.P.Morgan.