RULES ON OPENING AND USING

THE DIRECT INVESTMENT CAPITAL ACCOUNT (DICA)

After being issued an Investment Registration Certificate (IRC), any FDI enterprise in Vietnam must open and use a Direct Investment Capital Account (DICA) at an authorized bank to transfer capital for the registered investment activities.

According to the State Bank of Vietnam, a Direct Investment Capital Account (DICA) is a payment account in foreign currency or Vietnamese Dong opened by an FDI enterprise or a foreign investor at authorized banks to carry out transactions related to foreign direct investment activities in Vietnam.

RULES FOR OPENING A DIRECT INVESTMENT CAPITAL ACCOUNT

Entities eligible to open and use a DICA are limited to foreign-invested enterprises (FDIs), foreign investors involved in Business Cooperation Contracts (BCC), and foreign investors directly implementing PPP projects without forming a project enterprise. The following principles must be observed when opening the account:

1. Single Bank Rule: The investor or FDI enterprise must open a foreign currency DICA at (one) authorized bank to carry out legitimate foreign currency transactions related to foreign direct investment activities in Vietnam. In case of changing the authorized bank, the investor must open a new DICA at the new bank, transfer all balances from the previous DICA to the new account, and close the old account.
2. Single Account Rule: For each type of foreign currency used for capital contribution, only one DICA can be opened in that currency at (one) authorized bank;
3. Additional VND Account: In the case of investments made in Vietnamese Dong, the investor is allowed to open (one) DICA in VND at the same authorized bank where the foreign currency DICA is opened, to carry out legitimate VND transactions related to foreign direct investment activities in Vietnam;
4. Project-Specific Rule: If a foreign investor is involved in multiple BCC contracts or directly implements multiple PPP projects, the investor must open separate DICAs corresponding to each BCC contract or PPP project.

RULES FOR USING THE DIRECT INVESTMENT CAPITAL ACCOUNT

Permitted transactions involving DICA in foreign currency:

1. Receiving capital contributions in foreign currency from foreign and Vietnamese investors in FDI enterprises, foreign investors participating in BCC contracts, or directly implementing PPP projects.
2. Receiving payments for the transfer of investment capital or investment projects, as per regulations.
3. Receiving foreign currency from authorized credit institutions to transfer capital, profits, and other legitimate revenues abroad as stipulated.
4. Receiving transfers from foreign currency payment accounts opened at authorized banks by the same FDI enterprise, foreign investors in BCC contracts, or those directly implementing PPP projects, to transfer capital, profits, and other legitimate revenues abroad.
5. Converting foreign currency to make capital contributions when the contribution currency differs from the currency of the existing DICA.
6. Receiving surplus funds from the issuance of additional shares to increase the charter capital in FDI enterprises.

Permitted outgoing transactions on the foreign currency DICA:

1. Transferring funds to a foreign currency payment account opened at an authorized bank by the same FDI enterprise, foreign investors in BCC contracts, or the operator of oil and gas projects, to carry out foreign direct investment activities in Vietnam;
2. Selling foreign currency to authorized credit institutions and transferring funds to the VND payment account of the same FDI enterprise, foreign investors in BCC contracts, or those directly implementing PPP projects;
3. Transferring payment for the transfer of investment capital or investment projects to the transferor overseas, or selling foreign currency to pay the value of the transfer to the transferor in Vietnam in VND, as per regulations;
4. Transferring profits and other legitimate foreign currency revenues from foreign direct investment activities in Vietnam abroad;
5. Transferring foreign currency investment capital abroad in cases of capital reduction, project termination, liquidation, or cessation of investment activities, BCC contracts, or PPP contracts, as stipulated by investment law.
6. Converting foreign currency to transfer capital, profits, and other legitimate revenues abroad when the currency used for transferring differs from the currency of the existing DICA.

Read more:

• Forms of investment in Vietnam
• Form of enterprises
• Limited liability company – Multi-members limited liability company
• Limited liability company – Single-member limited liability company
• Foreign direct invest company in Vietnam – What you need to know
• Doing business in Vietnam – Register a company
• Doing business in Vietnam – How to name the company
• FDI company, foreign representative office in Vietnam – Lawful locations
• Legal representative of enterprise in Vietnam – Roles and responsibilities
• Capital contribution for establishment of a company – What you need to know
• Local compliance procedures on investment capital in Vietnam
• Doing business in Vietnam – Direct investment capital account
• Company in Vietnam – Lawful cash-flows and required compliances
• Doing business in Vietnam – Company’s charter
• Foreign loans subject to registration with the state bank
• FDI Enterprise in Vietnam – the Local Required Compliance Procedures – One-stop Solution