One of the biggest concerns for foreign investors in Vietnam is: can earned profits be transferred abroad, and what is the procedure? Vietnamese law permits profit repatriation, but under a foreign exchange control mechanism — all flows must go through licensed banks and meet statutory conditions.
This article guides FDI businesses through the profit-repatriation procedure under the Ordinance on Foreign Exchange and Circular 38/2026/TT-NHNN (effective 18 August 2026, replacing Circular 06/2019/TT-NHNN).
1. New legal framework from 18 August 2026: Circular 38/2026/TT-NHNN
The most important change FDI businesses must note: Circular 06/2019/TT-NHNN has expired, replaced by Circular 38/2026/TT-NHNN of the State Bank of Vietnam (issued 31 July 2026, effective 18 August 2026) on foreign exchange management for foreign investment activities in Vietnam.
Notable change: the name “direct investment capital account” (DICA) is no longer used. It is replaced by the “foreign investment account in Vietnam”, abbreviated as the “investment capital account”. Businesses should update this terminology in dossiers, contracts and internal procedures. In addition, investors may open the investment capital account right after being granted the Enterprise Registration Certificate (where the enterprise is established before the Investment Registration Certificate procedure).
2. Conditions for repatriating profits abroad
Under the Ordinance on Foreign Exchange (as amended in 2013) and Circular 38/2026/TT-NHNN, foreign investors may transfer abroad profits and other lawful income when:
- Financial obligations to the State of Vietnam are fulfilled: corporate income tax and other tax/financial obligations fully paid — this is the prerequisite;
- Audited financial statements for the profit-generating fiscal year are available;
- A valid profit-distribution decision of the enterprise exists (per its charter and enterprise law);
- The tax authority is notified before the outbound profit transfer as required by tax law (commonly 7 working days in advance).
3. The single channel: the investment capital account
All outbound profit transfers must go through the “investment capital account” opened at a licensed credit institution in Vietnam. This is a dedicated account, separate from the VND payment account used for daily operations.
Permitted outbound transfers through this account include: after-tax profits; original investment capital upon capital reduction or project termination; proceeds from transferring capital contributions or shares; and other lawful income from investment activities.
Key principle: each investment project opens only one investment capital account; direct investment funds must not go through domestic payment accounts; no transfers between investment capital accounts of different projects.
4. Practical procedure at the bank
Businesses need not seek State Bank of Vietnam approval for each transfer. Instead, foreign exchange control is exercised through the licensed bank holding the investment capital account. The dossier typically includes:
- The enterprise’s profit-distribution decision;
- Audited financial statements for the fiscal year;
- Evidence of fulfilled tax obligations (returns, payment receipts);
- Proof of prior notification to the tax authority;
- The outbound remittance order on the bank’s form.
The bank checks the dossier’s completeness and validity before executing the transfer. If conditions are unmet (e.g. tax obligations outstanding), the bank may refuse.
5. Common mistakes that block profit transfers
- Tax obligations unfulfilled while planning the transfer — the bank will refuse;
- Missing audited financial statements — mandatory;
- Using the old account name in new dossiers (“DICA” instead of “investment capital account” under Circular 38/2026);
- Transferring via the VND payment account instead of the investment capital account — a foreign-exchange violation;
- Forgetting to notify the tax authority within the required timeframe.
Frequently asked questions
Q: Does each profit transfer need State Bank of Vietnam approval?
A: No. Control is exercised through the licensed bank holding the investment capital account, based on a dossier proving all conditions are met.
Q: Circular 06/2019 has expired — are old DICA-form dossiers still usable?
A: Businesses should update to Circular 38/2026/TT-NHNN (effective 18 August 2026), under which the official name is “investment capital account”. Work with your bank to adjust dossiers and forms.
Q: Can undistributed profits of prior years be transferred at once?
A: Yes, if the conditions (tax obligations fulfilled, audited financial statements, distribution decision) are met for each corresponding fiscal year.
Does your FDI business need support with profit-repatriation procedures or operating an investment capital account? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. Its content is pending QA Council review before submission for approval; the information is for reference only and does not replace legal advice for your specific case.