New banking rules for foreigners

https://vietnamnet.vn/en/business/vietn … 47188.html

I went to the Timo website a few days ago and the first thing that popped up was that information. It does look legit.

Budman1 wrote:

https://vietnamnet.vn/en/business/vietnam-loosens-bank-savings-rules-for-foreigners-547188.html

Thanks for that.

Here's the circular:

https://vanbanphapluat.co/circular-49-2 … m-deposits

Rick

That's only for saving (term deposit) account.  Doesn't seem as there would be any requirements for current account (checking account in American English).

Ciambella wrote:

That's only for saving (term deposit) account.  Doesn't seem as there would be any requirements for current account (checking account in American English).

Most expats would have a term deposit over a check account. I have never seen a check in all my years here, maybe businesses use them, but I doubt an expat would.

The term checking account is pure American English, as I've never received cheques with my checking accounts in Italy and in VN.  Current/currency account would be a better term to describe an account that allows the holder to making deposit and withdrawal at will, as opposed to term deposit account where the holder needs to keep his money in the bank for a period of XXX months before he can make a withdrawal.

The new law only indicates requirements for term deposit account and not current/currency account, that's what I meant in my comment.

The term deposit accounts are the ones that pay interest. A number of expats have discussed having those accounts. My wife's family only uses term deposit accounts, they see no other reason to have money in the bank. Theinterest rates aren't bad compared to US.

Ciambella wrote:

That's only for saving (term deposit) account.  Doesn't seem as there would be any requirements for current account (checking account in American English).

This will cause you in case you lost ATM  card or Credit card to get a new Card.

More than 7 years ago u could send money to Vietnam and convert to dong and open a saving account with a high interest. Neither you worked here or visiting the country. Around 7 years ago the change the law and separate savings accounts from current accounts. Savings account was unregistered money. The put it back on your current account or using it for your atm was impossible! So they made a system to keep customers happy and keep a book as deposited so you could get a Visa card, even a American Express! Now they stop savings for foreigners that don't have a minimum visa or resident car for one year. Means for all customers that trusted the banks for years it will end this month. Or till mortgage date. Not sure what's happened with their money. Probably need to take out cash  and read online banking with a maximum of 100 million a day. The other thing what the banks are claiming is you have to go cash your money where u open an account.

"savings  accounts". What about only current accounts`? They affected?

Meanwhile I've got some more information from the Main office. It only effects foreigners with a tourist visa. When you got a resident card, work permit you're still good.

Yep new rules ...sadly ambiguous, but find a bank employee to explain them ..hopeless. After taking a recommendation from the local bank years ago I put my money - from salary in a ' book' now that's no good and they want nothing to do with you. I also have 2 TDs on ' paper' which are not affected ...go figure!!
Now that I've retired here I was using the excellent interest rates and good visa situation ...ah well in 6 months that's gone down the drain ..3 month visas unless you're American or married ..and now you can't have your money in the bank...
All the countries surrounding have retirement visas or packages that are suitable for people who want to live long term...why doesn't Vietnam 🤔🤔🤔

The big guys from China invest more and they don't need us anymore!

The article that Budman referenced (https://vietnamnet.vn/en/business/vietn … 47188.html)

seems to be very questionable. It says you need a 6 month visa to open a term deposit but another decree stated that you need a minimum 12 month visa, and that's what the banks have told me.

The good thing about being a US expat (the only good thing) is that I can get a 12 month VN visa. But with the new rules limiting term deposits to the remaining time on the visa, that means if I want a 1 year TD, I have to make it on the very first day that I enter the country on a new 12 month visa, and that's logistically very difficult to do because you have to get to the bank before it closes. And you have to know in advance if your bank is going to permit you to make the TD (some won't) or transfer it to another bank to arrive the same day, again, all this would have to happen the very first day that you enter on the new visa.

Timo told me that if I want to make a 1 year TD, using the app is not enough, I have to go to the bank and get my 1 year visa validated, and this must be the very first day that I'm in the country, and they also said you should get to the bank early, like before 12 or maybe 2 PM, all of which again is very difficult to do, timewise, on the very day that you enter VN from Cambodia, take a long bus trip to HCM, and have to check in to your hotel and dump your luggage first.

One of my banks said that I could make new deposits but they must mature before my present 1 year visa expires, which is in a few months.

So if I go to Cambodia or Thailand for a visit after my present visa expires before returning on a new 1 year visa, my funds will be sitting in the bank earning no interest until I return and make a new TD.

I just got a new 1 month TD at this particular bank, but unlike my previous 1 month TD, it is not in a compact savings book, it is a “Deposit Contract” that is about 8 sheets of paper stapled together. And it can't auto-renew, like my old 1 month savings books could. I have to come to the bank every month and make a new one, with a new account number to report to the US (because we have to report all our foreign accounts to the USG).

Just having to carry around a lot of these “deposit contracts” is a burden if you are travelling. They're much heavier than the savings books we used to get.

But according to new regulations, foreigners can only get “deposit contracts”, not savings books. I can't see any justification for such a burdensome rule.

And that's only if they qualify, meaning have a residence permit or 12 month or longer visa, which most nationalities cannot get.

My situation is similar to SaigonJack's. I'm retired here and using the high interest rate TDs to help finance my retirement. This is still possible if you have a 12 month visa, but now impossible for people who can't get one. And a retirement visa remains a distant fantasy.

Hard to see how this benefits Vietnam. It will only motivate expats and their money to leave the country.

Those of you who have a Timo account might notice that your "Goal Save" account, which paid a  mere 1% has been deactivated.  You are limited to the "Spend" account which has zero interest. This again is because of the new rules.  The new rules are a big F*** You to foreigners.

hyagly256 wrote:

Those of you who have a Timo account might notice that your "Goal Save" account, which paid a  mere 1% has been deactivated.  You are limited to the "Spend" account which has zero interest. This again is because of the new rules.  The new rules are a big F*** You to foreigners.

The govt tolerates us because they cant see past their noses. If Thailand wasn't under military rule I would move there.

The govt tolerates us because they cant see past their noses. If Thailand wasn't under military rule I would move there.

So what's the difference? Military dictator ship or a benign "communist" dictatorship?

RealPommy wrote:

The govt tolerates us because they cant see past their noses. If Thailand wasn't under military rule I would move there.

So what's the difference? Military dictator ship or a benign "communist" dictatorship?

Its obvious that you missed the "wasnt under Military rule".

If it was under a democratically elected PM like it used to be, I would live there.

Apparently the first decree that said you needed a minimum one year visa was replaced by a second decree that reduced that to six months. But who gets a six month visa? I thought that for most nationalities, 3 months was the maximum.

The biggest problem with the new regulations is that the fixed deposit cannot mature later than the expiration date of your visa or resident card. That never used to be the case. I used to open one year fixed deposits with only a few months left on my visa, no problem.

So even if you have a 6 month visa or 6 months left on your permission to stay, you are limited to short term FDs with lower interest rates. And if you have 5 months and 29 days left on your stay, probably you can only get a 3 month FD.

The vague language of the decree, "Besides this, the extension of the savings term will be negotiated between credit institutions and clients, according to the circular."  leaves some hope that banks will find a way to extend the savings term beyond the expiration date of the visa, but maybe that's wishful thinking.

The headline on the VietnamNet article, "Vietnam loosens bank savings rules for foreigners" is misleading. Yes, they loosened them by one notch after tightening them by 12 notches.

There must have been a strong backlash to their action and that's why they changed 12 months to 6 months. Maybe they will also change the bit about maturity must be before expiration of your permission to stay.

From https://checkinprice.com/vietnam-bank-d … oreigners/

"On Wednesday, the State Bank of Vietnam announced that resident and non-resident foreigners can still make term deposits at any local bank. This announcement comes after some banks said that they will not accept foreign customers applying for a savings account last week.
What is the Issue?

According to local banks, they will stop taking savings deposits from foreign nationals starting this July to follow Circular 48/2018/TT-NHNN. The circular became effect on July 5 and under its guidelines, only Vietnamese nationals can make savings deposits.

However, another circular – Circular 49/2018/TT-NHNN – which also became active on the same day say that foreigners currently living in Vietnam for six months and up can make term deposits through local banks. Non-residents can also avail this service.

To clarify this issue, the SBV said that there is no change in savings regulations for foreigners. Under the amended Law on Credit Institutions, “term deposits” and “savings deposits” are not the same.

Under Circular 49, term deposit made by either resident or non-resident foreigners must have a maturity date. This date is seen by their visa expiry or the documents indicating their length of stay. Extensions is allowed if banks and clients agree. A collateral will also be included in the discussions."

I went in to the DongA bank today to withdraw money to pay my rent. I have dealt with this bank for 12 years. They said I had to close my account and they gave me the balance in cash. I explained that I don't want to carry 100 million on my person or in my house. They said there was nothing they could do.

I also don't know if they will limit you to the finish date of your one year visa or your "permission to stay" which with a one year tourist visa is only 3 months.

I have a question with regard to visa requirement for banking purposes.
When i move to HCM in a mo th or so, being married to a Vietnamese citizen means i can apply for a visa exemption ? Will banks accept this in place of the mythical oe hard to obtain 12  month visa ?

And when i find permanent work, does thye work permit or TRC also replace the need for a 12 month visa ?

Jlgarbutt wrote:

I have a question with regard to visa requirement for banking purposes.
When i move to HCM in a mo th or so, being married to a Vietnamese citizen means i can apply for a visa exemption ? Will banks accept this in place of the mythical oe hard to obtain 12  month visa ?

And when i find permanent work, does thye work permit or TRC also replace the need for a 12 month visa ?

Banks will accept the VEC.

A work permit is not, by itself, a document which validates your permission to remain in Vietnam, for the purposes of opening a Payment Account (aka Regular Account or Checking Account) under current regulations.

A TRC is one of the documents which banks can use to validate your permission to remain in Vietnam for the purpose of opening a new account.

I believe you must choose between a TRC and a VEC, but both will serve as acceptable documents to prove your right to remain in Vietnam for the purpose of opening a new account.

For more information on the pros and cons of TRC vs VEC, see this thread:

https://www.expat.com/forum/viewtopic.php?id=867048

Also, I replied to virtually the same question by you in a different (sticky) thread:

Here...

https://www.expat.com/forum/viewtopic.p … =4#4726682

...and here:

https://www.expat.com/forum/viewtopic.p … =4#4726814

Budman1 wrote:

Here's the circular:

https://vanbanphapluat.co/circular-49-2 … m-deposits

Rick

Quoting from the circular (Google Translate)

Article 5. Principles of conducting time deposit transactions


2. Customers can send, receive term deposits only through their own payment accounts.

AkaMaverick and I both believe this means you must have a payment account (aka regular account or checking account) first before you open a Term Savings account.

So it's a bit of a catch 22.

The regulation change only loosens requirements for a Term Deposit account, so it appears that there is still a 12-month approved presence requirement to enter the banking system, after which a minimum of six months remaining is required to open a Term Deposit (aka Certificate of Deposit or CD) account.

Anyone, please correct me on this, especially if you have recent experience (since this reg change) of opening a Term Deposit account with fewer restrictions.

OceanBeach92107 wrote:

Budman1 wrote:

Here's the circular:

https://vanbanphapluat.co/circular-49-2 … m-deposits

Rick

Quoting from the circular (Google Translate)

Article 5. Principles of conducting time deposit transactions

2. Customers can send, receive term deposits only through their own payment accounts.

AkaMaverick and I both believe this means you must have a payment account (aka regular account or checking account) first before you open a Term Savings account.

See AkaMaverick's post here:

https://www.expat.com/forum/viewtopic.p … =4#4726831

OceanBeach92107 wrote:

Budman1 wrote:

Here's the circular:

https://vanbanphapluat.co/circular-49-2 … m-deposits

Rick

Quoting from the circular (Google Translate)

Article 5. Principles of conducting time deposit transactions


2. Customers can send, receive term deposits only through their own payment accounts.

AkaMaverick and I both believe this means you must have a payment account (aka regular account or checking account) first before you open a Term Savings account.

So it's a bit of a catch 22.

The regulation change only loosens requirements for a Term Deposit account, so it appears that there is still a 12-month approved presence requirement to enter the banking system, after which a minimum of six months remaining is required to open a Term Deposit (aka Certificate of Deposit or CD) account.

Anyone, please correct me on this, especially if you have recent experience (since this reg change) of opening a Term Deposit account with fewer restrictions.

Yeah, that's a good summary.

The hurdles you have today are to open a bank account. That was no problem in the past.
Once you have a bank account, life becomes easier again.

By the way, I have noticed that it is not always true that the best interest rate is given for longer term deposits.
Those who have a Timo App can see that a term deposit with 6 months gives the better interest rate than a term deposit with 1 year maturity.
With another bank it is much more extreme.
So always check all maturities!

Another supplement:
If you select a term deposit with a longer term than your residence permit is in the Timo App, the following message will appear:
"The maturity date exceeds your valid residence status.
Your visa / residency document is valid until: dd/mm/yyyy".

I think this will be similar for other banks with good e-banking.