Asia Legal

I often receive the same and popular question from many of my clients whether they can write contract value in Vietnamese Dong, which is converted from USD in their contracts? One of the reasons, among others, why many Vietnamese people want to write the contract value in USD or in Vietnamese Dong, which is converted from USD in their contracts, is because of the exchange rate fluctuations between VND and USD, where the VND is often seen to suffer from price escalation. It is very simple to answer this kind of question as it is clearly stated under the applicable regulations of Vietnam. Specifically, pursuant to Ordinance No. 06/2013/UBTVQH13, within the territory of Vietnam, all transactions, payments, listings, advertisements, quotation, pricing, writing price on contracts, agreements and other similar forms of residents and non- residents must not be effected in foreign exchange except for cases permitted in accordance with regulation of the State bank of Vietnam. This regulation i