Deposit Guide
Foreign investors must open an Indirect Investment Capital Account (IICA) at a custodian bank possessing the license for foreign exchange trading in Vietnam. Subsequently, depending on the custody method of the client's securities account, funds will be allocated accordingly when executing buy and sell transactions.
Custodian Account at Rong Viet
There are two forms of managing deposit accounts:
For purchase transactions, Rong Viet requests the bank to freeze the amount required to buy securities. With the investor's consent, the bank transfers the funds to the investor's securities account at Rong Viet to settle matched purchase transactions. Conversely, for proceeds such as securities sales or dividends received in the securities account, Rong Viet transfers the funds to the investor's indirect investment capital account at the bank on a monthly basis or upon the investor's request.
• All transactions on the securities account are recorded via electronic exchanges through a connection system between the two parties at the end of each trading day.
• For matched purchase transactions, Rong Viet processes the purchase through the bank, which deducts funds from the investor's indirect investment capital account.
Custodian Account at a Custodian Bank
The custodian bank will perform the function of managing and accounting for the investor's funds based on the securities trading results at Rong Viet. In this setup, the securities account at Rong Viet is used to execute buy/sell orders for the investor, while the accounting for transactions such as buy/sell orders, dividends, and other entitlements is handled by the custodian bank where the investor has opened their custodian account.
Outbound Transfer of Funds
- The investor requests the bank where their IICA account is opened for the remittance of funds back to their home country.
- The procedure and required documents for the transfer will vary depending on the receiving bank.
- Typically, the transfer order takes 1-2 business days to process, though it may take longer depending on the receiving bank's procedures.