On 29 April 2025, the State Bank of Vietnam officially released Circular No.03/2025/TT-NHNN, introducing significant updates on the opening and use of Vietnamese Dong (VND) Indirect Investment Accounts (ICAs) by foreign investors. This new Circular replaces the long-standing Circular No. 05/2014 and reflects Vietnam’s continued efforts to align its regulatory framework with international best practices.

In this legal update, LNT & Partners provides a detailed analysis of the most notable reforms brought about by Circular 03/2025. Key changes include a more comprehensive and legally aligned definition of “foreign investor,” the allowance of multiple ICAs at a single licensed bank under specific conditions, simplified documentation and procedures for ICA opening, and a broader scope of permissible transactions through these accounts. The Circular also introduces new obligations for both foreign investors and licensed banks, emphasizing compliance with anti-money laundering and counter-terrorism financing regulations.

Importantly, the new regulations are expected to reduce procedural barriers, enhance transparency, and improve accessibility for foreign investors in Vietnam’s capital markets. With the Circular taking effect from 16 June 2025, this update serves as a timely guide for businesses and investors to understand the implications of the new framework and prepare accordingly.

Prepared by Ms. Vo Ngoc Dai Trang (Associate) and Ms. Nguyen Thi Bao Ngoc (Trainee Associate)

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