FDI Enterprises Planning to Transfer Investment Funds – How to Open a Compliant Investment Capital Account?
DEDICA Law Firm Co., Ltd. once assisted Client C, a Singaporean investor, in opening an investment capital account for their component manufacturing company in Binh Duong. Despite having investment experience in several countries, they still encountered challenges due to Vietnam’s rather specific foreign exchange regulations.
We supported them by reviewing their documentation and liaising directly with the bank to ensure the account was opened swiftly and under the correct category. After the investment capital was received, we guided them through the formal procedures for capital contribution registration, ensuring no mistakes were made. As a result, the client not only completed the capital injection on time but also received support from the bank for additional services like profit remittance abroad and foreign currency trading.
7 Steps to Open a Foreign Investment Capital Account at a Vietnamese Bank
When a foreign investor decides to invest in Vietnam, one of the first and mandatory legal procedures is to open an investment capital account at a bank. Although it may seem as simple as “just opening a bank account,” any error or missing step could lead to serious issues: the capital transfer might not be recognized, investment reports could be rejected, or profits may not be able to be remitted abroad.
If you're preparing to inject capital into a company in Vietnam, this article will help you understand the 7 essential steps to open an investment capital account in a legal, safe, and effective manner.
Step 1: Understand the “Investment Capital Account” Properly
First, the enterprise needs to distinguish between an investment capital account and a regular payment account. This is a foreign currency or VND account opened at an authorized bank—exclusively used for receiving and executing transactions related to capital contribution, profit remittance, or capital reimbursement of foreign investors. Misuse could result in penalties under foreign exchange regulations.
Step 2: Prepare a Complete and Valid Document Package
Typically, the documents needed to open an investment capital account include:
Investment license or Investment Registration Certificate.
Business Registration Certificate.
Proof of legal status of the investor (passport for individuals; establishment license for entities).
Authorization letter (if opening on behalf of the legal representative).
Specimen signature and seal.
Some banks may require additional documents such as company charter or capital contribution decision.
Step 3: Choose the Right Bank
Not all banks offer investment capital accounts. Enterprises should prioritize banks experienced in working with foreign investors, such as Vietcombank, HSBC, Standard Chartered, Techcombank... International banks with English-language services can make documentation, transaction processing, and reporting more convenient.
Step 4: Register and Open the Account at the Bank Branch
After completing the documentation, the enterprise contacts the chosen bank branch to open the account. The process may take 1–3 working days depending on the bank. In special cases (capital from multiple sources, in-kind capital contribution, etc.), additional verification may be required.
Step 5: Transfer Capital According to Regulations
Once the account is opened, the investor can begin transferring funds from abroad. It’s crucial that the transfer memo clearly states the purpose: “Capital contribution to Company B under Investment Registration Certificate No.…”. This will serve as legal proof later to validate the capital contribution.
Note: All foreign investment must go through this account. If the investor transfers to a personal account or a regular payment account, the money may not be recognized as valid capital contribution.
Step 6: Report Capital Contribution to the Department of Planning and Investment
After receiving the full committed amount, the enterprise must report the capital contribution within 10 working days. Depending on the locality, the application can be submitted online via the Public Service Portal or in paper form.
Timely reporting not only ensures legal compliance but also enables investment certificate adjustments (if needed) and allows further capital injections.
Step 7: Manage the Investment Capital Account Effectively
The investment capital account must be used strictly for its intended purposes: receiving capital, remitting profits, recovering investment, etc. It must not be used for daily operations such as payroll or procurement. If funds are needed for those activities, the money should be transferred from the investment account to the company’s payment account.
Enterprises should also carefully retain bank statements and credit confirmations to serve for audit, finalization, or in case of disputes regarding capital contributions.
If you are preparing to invest in Vietnam and need to open an investment capital account, let DEDICA Law Firm accompany you from the very first steps. With extensive experience advising on numerous FDI projects, we not only help you comply with the law but also optimize your investment efficiency.
Contact DEDICA Law Firm now for in-depth legal assistance!
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