Among the first difficulties when visiting any country is financial management. Therefore, opening a bank account is essential when you intend to study, travel, live, invest or work in Vietnam. And this is especially true when you plan to reside in Vietnam for several months or longer.
Why should you open a bank account in Vietnam?
Because of 3 reasons:
- ATM withdrawals are expensive;
- National banks calculate currency exchange rates;
- The number of ATMs withdrawing cash is limited.
The good news is that the Vietnamese government allows tourists to open a bank account when visiting, working or living in Vietnam. Opportunity for all foreigners to open bank accounts in Vietnam to attract more foreign investors into the market.
Required documents to open a corporate bank account in Vietnam
- Bank application form.
- Documents proving the establishment of a foreign company in Vietnam.
- Documents of the authorized person or legal representative along with a valid passport or identification.
Types of bank accounts in Vietnam
1. Foreign Currency Bank Account (USD, EUR, JPY, GBP, …)
The strength of this type of bank account is that it is easy to transfer money to an overseas bank. Therefore, some foreigners choose this account when they want to transfer money back to their home country or vice versa. Conditions for opening a foreign currency bank account in Vietnam, the minimum deposit amount is 300 EUR or USD, depending on the regulations of each bank.
2. Bank Account in Local Currency (VND)
In contrast to a foreign currency bank account, convenience is the main strength of using this type of bank account. Transactions at hotels, restaurants, supermarkets and other business locations are easy with local currency. Best of all, there are no VND withdrawal fees in ATMs.
According to regulations, the condition to open a local currency bank account in Vietnam is a deposit. And like all banks worldwide, it is subject to maintenance balance.
3. Investment capital account
In general, this is an account for businesses used to receive and send money. Depending on the type of investment, the transaction can go through:
- DICA or Direct Investment Capital Account – This is a payment account in both foreign and local currency, which is arranged by the authorized bank to carry out transactions under the policy of outward direct investment in Vietnam.
- ICA or Indirect Investment Capital Account – This is a foreign venture capitalist’s local currency settlement account at a certified bank to facilitate disbursement of authorized expenses and receipt of funds related to foreign indirect activities in Vietnam.
It is important to remember that opening this account requires an internal or commercial financial institution in Vietnam. In this way, the business is sure that the bank is legally authorized to provide foreign exchange trading and services.
4. Trading Account
This is the best type of bank account for daily commercial transactions in Vietnam. Examples include ATM cards, debit cards, cash withdrawals and deposits of banknotes and coins, money orders, and checking accounts.
In some cases, Vietnamese banks charge fees for opening a bank account. In addition, bank fees vary from bank to bank, with most banks not telling customers the exact amount of cash withdrawal fees. Instead, they show a notification about a charged fee.
Standard fees are average bank and ATM fees, including minimum monthly service fees, online banking, and fees when the bank account drops below the maintenance balance. And like all banks, the total amount that can be withdrawn each day through an ATM varies from bank to bank.
Then, most importantly, when using a debit card abroad, a withdrawal fee based on the bank’s exchange rate will be charged. Finally, note that not all banks in Vietnam offer global money transfers. So it’s essential to check with the bank to avoid any trouble getting started.
It is very helpful for foreigners to go directly to global banks in Vietnam. US banks and financial institutions in Vietnam such as Citibank, Far East National Bank, Wells Fargo, Visa International and JP Morgan Chase.
Bank account setup in Vietnam with Warren B
Warren B can assist you with obtaining a bank account, whether you are a foreign individual residing in Vietnam or an investor establishing a company in Vietnam and wants to open a corporate bank account, due to our long-standing cooperation with various banking institutions in Vietnam.
Opening a bank account with Warren B can assist you in determining the best bank for your needs and making the procedure much faster and easier. Fill out the form here to contact us if you need more information on opening a bank account in Vietnam.