Is Setting Up an Offshore Account in Vietnam Feasible? A Comprehensive Analysis and Practical Recommendations

Is It Feasible to Open an Offshore Account in Vietnam? In-Depth Analysis and Practical Guidance

In recent years, with the deepening of global economic integration, more and more businesses and individuals have begun to focus on offshore financial services. Against the backdrop of rapid development in the Southeast Asian market, Vietnam has gradually become a hotspot for investors. So, is it actually feasible to open an offshore account in Vietnam? Does this comply with local regulations? And what are the key considerations in practice? This article provides an in-depth analysis and practical guidance based on recent news and policy developments.

1. What Is an Offshore Account, and Why Focus on Vietnam?

An offshore account refers to a bank account opened in a country or region where the account holder is not a resident. These accounts are typically used for cross-border fund management, tax optimization, and asset protection. For companies engaged in international trade, overseas investors, or high-net-worth individuals, the strategic use of offshore accounts can enhance liquidity, reduce currency conversion costs, and mitigate exchange rate risks to some extent.

Vietnam has experienced continuous economic growth, with GDP growth reaching 5.1% in 2025. Foreign capital inflows have steadily increased. According to the Vietnam Ministry of Planning and Investment, FDI inflows exceeded USD 15 billion in the first half of 2025, representing a year-on-year increase of nearly 20%. This trend has attracted significant international attention, making Vietnam’s financial openness a topic of widespread discussion.

2. Vietnam’s Financial Regulatory Environment

Vietnam’s financial system is primarily regulated by the State Bank of Vietnam SBV. Under current regulations, the management of foreign exchange accounts is relatively strict, especially for non-residents-both individuals and companies-who face clear restrictions when attempting to open accounts locally.

According to SBV regulations, non-residents-defined as non-Vietnamese citizens or foreigners not residing long-term in Vietnam-must typically provide evidence of legitimate economic activity with Vietnamese entities, such as contracts, investment agreements, or trade documents, to open a local bank account.

There are also certain limitations on the inflow and outflow of foreign currency funds. For instance, remittances from non-resident personal accounts usually require supporting documentation, including tax certificates and transaction background materials, with banks conducting rigorous due diligence.

3. Feasibility of Offshore Accounts in Vietnam

Legally speaking, Vietnam permits foreign-invested enterprises to open foreign currency or local currency accounts under certain conditions. However, this is not equivalent to a traditional offshore account. True offshore accounts are typically established in offshore financial centers such as Singapore, the Cayman Islands, or the British Virgin Islands, offering higher levels of privacy, tax benefits, and greater flexibility in fund management.

Opening a foreign currency account in Vietnam can still be part of a cross-border financial strategy. For example, multinational corporations with subsidiaries in Vietnam may choose to open foreign currency accounts locally to facilitate daily settlements and fund transfers. However, these accounts are subject to Vietnamese financial regulations and do not offer the full freedom associated with traditional offshore accounts.

In June 2025, the SBV issued new foreign exchange management guidelines, further standardizing the opening and use of non-resident accounts. These guidelines require banks to enhance scrutiny of fund sources to prevent money laundering and illicit financial flows. While opening a foreign currency account in Vietnam remains feasible, the process has become more stringent and complex.

4. Practical Recommendations and Key Considerations

1. Clarify the Purpose and Ensure Compliance

Before considering opening an account in Vietnam, clearly define the intended use of the funds. If the account is for daily operational settlements, opening a foreign currency account at a local bank may be appropriate. However, for cross-border fund management or tax optimization, it may be more advantageous to choose a more mature offshore jurisdiction.

2. Choose the Right Bank and Account Type

Major Vietnamese commercial banks, such as VietinBank, Vietcombank, and BIDV, offer foreign currency account services. However, the application processes and required documents vary slightly between institutions. It is advisable to communicate with the bank in advance to understand specific requirements.

3. Prepare Complete Documentation

Typically required documents include identification, company registration certificates, business contracts or investment agreements, and tax registration certificates. Some banks may also request proof of fund sources or cooperation with local Vietnamese companies.

4. Be Mindful of Exchange Rates and Remittance Restrictions

The Vietnamese dong is not a fully convertible currency, which may result in exchange rate risks when transferring funds. Vietnam has a reporting system for outbound remittances, and large transactions must be pre-reported with supporting documentation.

5. Consider a Combined Offshore Strategy

For individuals or businesses with cross-border financial needs, it may be beneficial to open an offshore account in neighboring jurisdictions such as Singapore or Malaysia, while also maintaining a local Vietnamese account. This allows for legally compliant and efficient fund management.

5. Conclusion

In summary, opening a traditional offshore account in Vietnam is not possible. What is feasible is opening a foreign currency account at a local bank for cross-border business settlements. Although Vietnam’s financial regulations have become increasingly strict, it is still possible to achieve certain financial management goals within a compliant framework.

For individuals and businesses looking to expand into Vietnam or make investments, understanding local financial policies, choosing the right account-opening approach, preparing complete documentation, and working with professional financial institutions are all key to achieving efficient and compliant fund operations.