As Vietnam increasingly becomes an ideal destination for living, working, and investing, many foreigners have begun to pay greater attention to personal financial management in the country. One of the most common and secure methods is a term deposit – safe and yielding stable returns. But does Vietnamese law actually permit foreigners to engage in this form of savings?
1. What is a Term Deposit? Who is Eligible to Make Term Deposits in Vietnam?
Pursuant to Clause 1, Article 4 of Circular No. 49/2018/TT-NHNN, a term deposit is a sum of money deposited by a customer at a credit institution for a fixed period, as agreed between the customer and the institution, under the principle that both principal and interest shall be fully repaid to the customer.
According to Article 3, the following persons are permitted to make term deposits:
- Resident organizations and individuals;
- Non-residents, including:
- Diplomatic missions, consular offices, and representative offices of international organizations in Vietnam; representative or project offices of foreign organizations in Vietnam;
- Vietnamese citizens not falling within the cases prescribed under the Foreign Exchange Ordinance (as amended and supplemented);
- Foreign individuals legally residing in Vietnam for a period of six (06) months or more.
Accordingly, under the above regulations, a foreigner wishing to make a term deposit with a licensed bank must, at minimum, satisfy the condition of having lawfully resided in Vietnam for at least 06 months.
2. Permitted Forms of Transaction
– Pursuant to Clause 2, Article 5, a foreign customer shall make and receive payment of term deposits through his/her own payment account, and shall also enjoy the applicable interest rate corresponding to the registered term.
– Repayment of principal and interest shall be made in the same currency initially deposited (either Vietnamese dong or foreign currency).
– Transaction subjects (Clause 3):
- The customer may directly perform the transaction and bear full responsibility for his/her acts;
- Transactions may be conducted through a lawful representative in accordance with the guidance of the credit institution (with written authorization required);
- Where the customer has restricted or lost civil act capacity, or is under 15 years of age, transactions may be carried out through the legal representative;
- A guardian may transact on behalf of a person with difficulties in cognition or behavior control.
– Term of deposit: The deposit term shall be as agreed by the parties but must not exceed the remaining validity period of the documents evidencing the foreign individual’s status as a resident or non-resident, such as visa or other lawful residence permits issued by the Vietnamese authorities.
3. Certain Notable Provisions on Term Deposits
3.1 Deposit Agreement (Article 6):
- Must be made in writing;
- Must at least include: customer information; credit institution information; amount, currency, term of deposit, date of deposit, maturity date; interest rate and method of payment; provisions on early withdrawal, extension of term; details of the customer’s payment account; handling of problematic accounts; retrieval measures; handling of lost or damaged deposit agreements; rights and obligations of the parties; validity of the agreement. Additional terms may be included, provided they are consistent with the law.
3.2 Interest on Term Deposits (Article 7):
- Must comply with regulations of the State Bank of Vietnam on applicable interest rates from time to time;
- The method of calculating interest shall follow State Bank regulations, while the manner of payment may be agreed upon between the parties.
3.3 Extension of Term Deposits (Article 9):
- For resident or non-resident foreign organizations and individuals, any agreement to extend the deposit term must comply with applicable legal provisions;
- Where extension conditions are not satisfied, the credit institution shall transfer the principal and accrued interest (if any) into the customer’s payment account.
The above analysis shows that Vietnam has been gradually opening its financial system to foreigners while maintaining clear rules to ensure transparency and systemic safety. Accordingly, if you are a foreigner residing in Vietnam, making a term deposit is entirely feasible—provided you comply with legal requirements and prepare the necessary documentation.
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1. Lawyer Vu Thi Phuong Thanh, Ha Noi Bar Association
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