Scenario: a German individual investor plans to contribute USD 500,000 to a software company in Ho Chi Minh City. He files three months of bank statements — but the investment registration authority asks for “a balance confirmation issued by a credit institution.” Why isn’t a statement enough, and what does a compliant balance confirmation contain? This article covers individual foreign investors — distinct from the parent-company bank statement case (covered separately in topic EXP-1060).
Legal framework: “other documents proving financial capacity”
Point (c), Clause 1, Article 32 of Decree No. 96/2026/ND-CP provides that documents proving the investor’s financial capacity include at least one of: the investor’s financial statements for the two most recent years; a parent company’s financial support commitment; a financial institution’s financial support commitment; a guarantee of the investor’s financial capacity; or “other documents proving the investor’s financial capacity.”
For an individual investor, two-year financial statements or a parent-company commitment do not fit — practice uses the “other documents” door: a bank balance confirmation or savings passbook issued by a credit institution. This approach is guided by law firms and widely accepted by local investment registration authorities.
Distinguish clearly from EXP-1060: a balance confirmation is a bank-issued letter confirming the amount at a point in time, bearing the bank’s signature and seal — proving “the investor has the money now.” A bank statement is a transaction history over a period — and in practice, a company’s account statements are not accepted by many localities as a substitute. For individual investors, the balance confirmation is the tidier, safer choice.
Contents of a compliant balance confirmation
A smoothly accepted confirmation typically contains six elements: (1) the account holder’s name matching the investor exactly as in the dossier (one wrong character draws questions); (2) the account number; (3) the account currency; (4) the balance as of the confirmation date, in figures and words; (5) the name and signature of the bank officer plus the issuing credit institution’s seal; (6) an issue date close to the filing date — never use a confirmation issued many months earlier.
On the amount: the law sets no fixed ratio (e.g., 100% of registered capital). But practice shows a balance commensurate with the registered contribution keeps the dossier moving; a balance far below the registered capital will very likely prompt questions about the capital-raising plan. For large contributions, confirmations from several accounts may be filed together.
Confirmations issued by foreign banks: translation and legalization
Individual foreign investors usually obtain the confirmation from a bank in their home country. Two points follow. First, Decree 96/2026/ND-CP requires foreign-language documents to be accompanied by a Vietnamese translation — a confirmation in English, German, Korean, etc. must include its Vietnamese translation in the dossier.
Second, consular legalization: this is a document issued by a foreign credit institution. Practical application varies by locality — some accept the translation without legalization, others require it. Because legalizing a bank document abroad costs time and money, ask the investment registration authority where you will file about its specific requirement first, to avoid doing it twice. The balance should also be in a freely convertible currency or VND to ease the later capital contribution.
4 common mistakes that weaken a balance confirmation
1. Confirmation in someone else’s name. A confirmation naming the investor’s spouse or relative does not prove the investor’s own financial capacity — unless additional documents prove lawful access to the funds, which is very hard to argue in practice.
2. A balance far below the registered capital. As noted, no fixed ratio exists in law, but too wide a gap makes the case officer doubt the capital plan’s feasibility.
3. A stale confirmation. Account balances change daily; a confirmation issued six months ago has almost no probative value at review time.
4. A restricted account. A frozen or restricted account, or a balance sitting in a securities account that cannot be withdrawn immediately, does not demonstrate ability to pay for the project.
Frequently Asked Questions
How does a balance confirmation differ from a bank statement?
A balance confirmation is a bank letter confirming the amount at a point in time, signed and sealed — answering “how much money the investor has right now.” A statement is a transaction history over a period — showing cash flow but not confirming the current balance. For individual investors, the balance confirmation is more widely accepted and more concise.
Can a savings passbook replace the balance confirmation?
Yes. A savings passbook is a form of “other document proving financial capacity” under Point (c), Clause 1, Article 32 of Decree 96/2026/ND-CP. File a certified copy of the passbook, plus a bank confirmation letter if available; if the account is with a foreign bank, attach the Vietnamese translation.
Must the balance equal exactly 100% of the registered contribution?
No. The law sets no fixed ratio. In practice, a balance commensurate with the registered contribution keeps things smooth; if it is lower, prepare an explanation of supplementary funding sources (e.g., the capital-raising plan in the project proposal) to answer questions.
Can a joint account in both spouses’ names be used?
Only if you can prove the investor has full disposal rights over the funds — very difficult in practice. Safest is a confirmation on an account held solely in the investor’s own name.
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This legal analysis has been verified against current Vietnamese regulations and cross-border FDI transaction practices by the attorneys at FLAT LAW FIRM.
