The foreign expert’s contract states salary in USD, but when the employer places the transfer order, the bank refuses, citing invalid documents. Both employer and expert worry whether foreign-currency salary payment is prohibited. It is not: foreign exchange law permits paying salary in foreign currency to foreign employees through accounts, and most refusals are documentation issues. This article analyses the legal frame, common refusal reasons, and how to get the transfer through.
Legal frame: foreign-currency salary through an account is permitted
Circular 32/2013/TT-NHNN guiding the use of foreign exchange in Vietnam’s territory provides in Article 4 the transactions and payments permitted in foreign currency in certain cases, among them an organisation paying salary, bonuses and allowances in foreign currency to foreign employees working for that organisation, performed through accounts. A foreign-invested company signing a labour contract with a foreign expert stating USD salary and paying through a bank account is a transaction within this permitted scope, not an exception needing separate approval.
On the receiving side, the foreign expert may receive salary into their foreign-currency account at an authorised bank, use foreign currency as prescribed, and remit lawful income abroad after completing tax obligations in Vietnam. The thread running through the whole chain is documentation: foreign exchange transactions in Vietnam operate on the principle that every transaction needs documents proving its lawfulness, and the bank is responsible for checking documents before executing an order.
Why banks refuse salary transfer orders
The most common reason is an incomplete or mismatched proof file: the expert’s labour contract does not clearly state the foreign-currency salary and pay period; the work permit or the written confirmation of work-permit exemption is missing; the payroll and salary payment decision do not match the order amount; or the receiving account is not the employee’s correct foreign-currency account. A bank refusing in these cases is performing its document-checking duty under foreign exchange rules, not making a subjective judgement on the transaction.
Another group of reasons sits on the employer’s side: the foreign-currency source is not clearly proven where the employer buys foreign currency from the bank to pay; the pay period in the order differs from the contract; or an outward remittance for an expert whose work has ended lacks the personal tax completion file. Each reason has a specific document to supplement, and the bank must state the missing documents when refusing — the employer should ask the bank to confirm in writing or through the official transaction channel the exact list of documents needed rather than exchanging words at the counter.
How to fix it, and design payments so it does not recur
When an order is refused, the effective sequence is: ask the bank to state specifically the grounds and missing documents; re-check the expert’s full labour file including contract, salary addendum, work permit or exemption confirmation, appointment decision and the corresponding period’s payroll; supplement and reconcile figures across documents before re-placing the order. If the employer considers the file complete and the bank still refuses without basis, complaint channels run to the bank’s higher level and to the State Bank as the foreign exchange regulator.
For long-term design, employers with several foreign experts should standardise one shared foreign-currency payroll file: contract templates stating currency and pay period clearly, a tracker of each expert’s work permit expiry, a personal income tax withholding and filing process attached to each pay period, and a fixed contact point at a bank branch experienced in foreign-worker foreign exchange transactions. Most refused orders in practice disappear once this file exists, because the bank checks a familiar file format instead of a differently assembled bundle each month.
Frequently Asked Questions
Is paying salary in USD to a foreign expert lawful?
Yes. Under Article 4 of Circular 32/2013/TT-NHNN, an organisation may pay salary, bonuses and allowances in foreign currency to foreign employees working for it, performed through accounts. The expert may receive into a foreign-currency account and remit lawful income abroad after completing tax duties. Transactions must carry valid proving documents under foreign exchange rules.
Why do banks usually refuse a USD salary transfer order?
Mainly because the proof file is incomplete or mismatched: the contract does not clearly show the foreign-currency salary and pay period, the work permit or exemption confirmation is missing, the payroll does not match the order amount, or the receiving account is not the employee’s correct foreign-currency account. The bank must check documents and, when refusing, identify the missing ones for the employer to supplement.
In what order should an employer handle a refusal?
Ask the bank to confirm specifically the refusal grounds and the list of documents to supplement; re-audit the expert’s whole file including contract, salary addendum, work permit, the period’s payroll and tax records; reconcile figures across documents and re-place the order. If a complete file is still refused without basis, complain to the bank’s higher level and the State Bank.
Can the expert remit USD salary abroad?
Lawful labour income earned in Vietnam may be remitted abroad through an authorised bank after personal income tax obligations in Vietnam are completed, with documents proving the income source and tax completion. The employer should help the expert keep a complete salary and tax document set for each remittance.
Practical recommendations
A refused foreign-currency salary order is almost never a sign the transaction is prohibited; it is a signal the file has not met the bank’s checking standard. Employers with foreign experts should treat foreign-currency payroll documentation as its own compliance process, standardised once and reused monthly, instead of handling each refused order as a one-off incident.
This article has been quality-reviewed by the FLAW AI Legal Council