Vietnamese Investors: US Investment Guide
Navigating capital controls, foreign exchange regulations, and compliant investment pathways
Vietnam Investment Overview
Capital Controls
US Tax Treaty
E-2 Visa
Central Bank Approval
Vietnam maintains significant capital controls overseen by the State Bank of Vietnam (SBV). Outward investment requires approval, and foreign currency transactions are regulated. However, legal pathways exist for Vietnamese nationals to invest in the US, particularly for those with existing foreign currency holdings or overseas income.
Vietnam Capital Controls
Understanding Vietnam's FX Regulations
Vietnam's foreign exchange regulations are set by the State Bank of Vietnam (SBV):
Key Restrictions
- VND is not freely convertible
- Outward direct investment requires SBV registration
- Foreign currency purchase limits apply
- Banks require documentation for transfers
- Large transactions need approval
Regulatory Framework
- Decree 135/2015 on outward investment
- Circular 12/2016 on procedures
- SBV guidelines on forex
- Anti-money laundering laws
- Tax clearance requirements
Outward Investment Registration
Large outward investments require registration with Vietnamese authorities:
| Investment Size | Approval Authority | Timeline |
|---|---|---|
| Under $20 billion VND (~$800K USD) | Provincial DPI | 15-30 days |
| $20B - $800B VND | Ministry of Planning and Investment | 30-45 days |
| Over $800 billion VND | National Assembly approval | Several months |
Legal Transfer Methods
Permitted Pathways for US Investment
Vietnamese residents have several legal options for moving capital abroad:
Foreign Currency Accounts
- Maintain USD accounts in Vietnam
- Use legally-obtained foreign currency
- Income from overseas work/business
- Remittances from family abroad
- Export earnings in FCY accounts
Registered Outward Investment
- Formal SBV registration process
- Business case justification
- Approved investment sectors
- Periodic reporting requirements
- Repatriation obligations
Personal Allowances
- Travel allowance (limited)
- Education expenses abroad
- Medical treatment overseas
- Support of family members
- Requires supporting documents
Overseas Vietnamese (Viet Kieu)
- Different rules for overseas Vietnamese
- Can hold property and accounts
- More flexible transfer rules
- May require residency documentation
- Consult specific regulations
Singapore as Transit Hub
Vietnamese with business operations in Singapore may structure investments through there:
Singapore Advantages
- No capital controls
- Strong banking system
- Common law jurisdiction
- Tax treaty with US
- Geographic proximity
Requirements
- Legitimate business presence
- Proper substance in Singapore
- Compliant fund sources
- Not for Vietnam FX avoidance
- Full disclosure to authorities
US Entity Formation
Recommended US Structures
Once funds are legally in the US, these structures work well:
US LLC
- Wyoming or Delaware formation
- Single member: disregarded entity
- No US tax if no US business
- Good for real estate holding
- Privacy benefits in some states
US C-Corporation
- 21% corporate tax rate
- 30% dividend withholding (no treaty)
- Best for active business
- Can sponsor visas
- Attracts US investors
US Banking
Opening US Bank Accounts
Vietnamese nationals face additional scrutiny when opening US accounts:
Required Documentation
- Valid passport
- Proof of Vietnam address
- Source of funds documentation
- US LLC formation documents
- EIN confirmation letter
Enhanced Due Diligence
- Detailed source of wealth
- Business documentation
- Tax records from Vietnam
- Bank statements showing history
- Reference from existing bank
Tax Considerations
No US-Vietnam Tax Treaty
Without a tax treaty, Vietnamese investors face standard rates:
| Income Type | US Rate | Planning Options |
|---|---|---|
| Dividends | 30% withholding | Use LLC, reinvest profits |
| Interest | 30% (with exceptions) | Portfolio interest exemption |
| Royalties | 30% withholding | Limited options |
| Real estate gains | FIRPTA 15% withholding | File return for actual tax |
| Estate tax | 40% over $60K | Use corporate structure |
Vietnam Tax Obligations
Vietnamese tax residents must report worldwide income:
Vietnam Tax Requirements
- Report global income to GDT
- PIT on foreign income
- Credit for US taxes paid
- Annual declaration required
Considerations
- Vietnam PIT up to 35%
- No double tax treaty
- Unilateral credit available
- Consult Vietnamese tax adviser
Compliance Requirements
Documentation Best Practices
For Vietnam Authorities
- Outward investment registration
- Tax clearances for transfers
- SBV forex documentation
- Annual reporting on foreign assets
- Repatriation records
For US Authorities
- ITIN application
- Annual tax returns (if required)
- BOI reporting for LLCs
- FIRPTA compliance on sale
- State-level registrations
Frequently Asked Questions
Can I buy US real estate directly from Vietnam?
Yes, but you must have legally-obtained foreign currency and follow SBV procedures for the transfer. The easiest path is using existing USD from overseas business, remittances from relatives abroad, or going through the official outward investment registration process for larger amounts.
What about using cryptocurrency?
Vietnam does not recognize cryptocurrency as legal tender, and using it to circumvent capital controls carries legal risk. US banks will also require documented source of funds, and crypto conversions may trigger additional scrutiny. This is not a recommended pathway.
Can overseas Vietnamese (Viet Kieu) invest more easily?
Yes, overseas Vietnamese with foreign residency have different, generally more flexible rules for holding foreign assets and transferring funds. If you have permanent residency or citizenship in a country like the US, Australia, or Singapore, different regulations apply to your situation.
Is there an E-2 visa option for Vietnamese?
No, Vietnam does not have an E-2 treaty investor visa agreement with the United States. Vietnamese nationals seeking to live in the US through investment typically need to pursue the EB-5 immigrant investor visa ($800K-$1.05M investment for a green card) or other visa categories.