What Are the Best Expat Bank Accounts in Vietnam – that will be the topic of today’s article.
Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here.
The best time to consider your financial situation is when you are moving to a new country.
Introduction
In recent years, the financial sector in Vietnam has continued to increase on a large scale. They have made strong progress and play a significant role in promoting the sustainable development of Vietnam’s country. With the high-quality services, it’s crucial to open a Vietnam bank account.
Whether you’re relocating for the first time or you’ve been to the country countless times, you still need a bank account. For foreigners looking for the best way to save money or convert their cash, several trusted banks in Vietnam. And more so, we’ve got you covered with the right info.
If you’ve been surfing the internet to get the right information regarding Vietnam’s bank account, worry less, as we are here for you. Besides, having a bank account can make many things easier if you’re relocating to the country for the first time. Does that sound interesting to know? Read further!
To cover the main questions we’ve been receiving from expats about Vietnam’s bank, it’s vital to read through the expat guide of living and getting work in the country. Aside from this fact, I will also introduce you to some essential concepts when you want to open a bank account in the country.
However, our main focus in this article is to explain the best expat bank accounts in Vietnam. Not only that, but we have compiled this article to itemize the reasons for opening a bank account, the requirements as an expat, Frequently answered questions about banking in Vietnam, and many others.
What to Know about Vietnam’s Banking System
As of today’s 21st century, the banking system in Vietnam is modern and efficient. In fact, most banks in Vietnam have at least one English-speaking service representative, making it easier to communicate better. All banks in Vietnam offer a range of banking packages, so it’s worth researching before opening one. Also, you’ll need to have a passport and a copy of your country’s employment contract to begin.
● Banking Procedures – The formalities and procedures of Vietnam’s banking system are quite similar to what you’ve seen in the western world. Although this may vary according to the bank, but you’ll typically include a valid passport and visa, proof of address, a copy of the work contract, and a minimum deposit amount to open a new bank account successfully.
● Banking Conditions – Many expats in Vietnam prefer to open two bank accounts. One will be in their local currency (VND), while the other could be in one foreign currency such as dollars or Euros. Either way, having a foreign currency account will facilitate your money transfers to another foreign bank. Also, some banks can only allow you to open a transfer account to deposit.
How Vietnamese Banks Meet Customers Expectations
With the core problem lying in business diversity and technological advancements, banks in Vietnamese need to come up with an end-to-end means regarding the COVID-19 pandemic. To deliver an optimal service or customer experience, diverse product offerings and digital banking need to be considered.
For retail banking in the country, the pricing and bundling of products and offers have allowed the sector to make an innovative solution to increase the lifetime value of the customer with a relationship-based pricing strategy and also help to deliver the most suitable offer with the optimal product offering as of today.
Now, the question is; will expat or foreigners enjoy this customer satisfaction. At first, you should know that the global pandemic has caused the banking system to adhere to strict COVID-19 rules and regulations. They’ll consider you being an expat but ensure you meet the manager during the process.
By meeting with the manager or any customer representatives, you’ll be guided on the necessary things to open your bank account successfully. In addition, the banking system in Vietnam has developed a centralized platform that can help banks overcome technical and business challenges.
With the above factors in place, you’ll experience effective customer management that offers life cycles in an omnichannel environment. Moreover, in this digital transformation, Vietnamese banks can’t afford to ignore the service of good customer service. So be rest assured that you’re covered here.
Expats Bank Account in Vietnam
Did you just relocate to Vietnam, and you’re planning on opening a bank account? Whether it is a personal or enterprise account, we have compiled this article to cover all the information you need to know before getting one for yourself or your company. Check the types of expat bank a/c below.
1. Expat Personal Bank Account
According to the country’s banking system, expats are eligible to open a bank account, use bank cards and other services only if they are permitted to stay in the country for longer than 12 months. Aside from this fact, foreigners will have to provide documents confirming their residential status in the country.
Requirements to Opening Personal Bank Account
As the banking system operates, below are the required documents for a personal bank account in Vietnam.
- A valid international passport and identifiable conditions with at least six months validity before the normal expiry date
- A valid Vietnam visa with a duration of a minimum of at least one year is issued within the last 365 days.
- Temporary resident card, and work permit
- Temporary resident confirmation issued by Vietnam police
Banking Fee for Personal Savings
Like anywhere else globally, banks will certainly charge you per their own set of rules and fees. Below are some common fees that you might be charged as a foreigner in Vietnam.
Normal Bank Fees – The normal bank fee is known as the upfront charges that the bank charge monthly
ATM Charges – The ATM charges are typically deducted when you’re withdrawing money from an ATM of your bank or VND 3,300 from that to another account
Common Banking Options for Expatriate
Besides Vietnam banks, foreign banks are also operating in the country. However, choosing which bank to use entirely depends on your location and your choice of bank. Now, let’s walk you through the famous choices for expats.
Timo (Online) – This is an online bank in Vietnam famous for its cost-saving, convenience, and excellent customer service. As of today, this online banking is currently switching to a new banking partner. So, we advise you to contact them for more details before opening any bank account with the firm.
Vietcombank (Online) – This is one of the major banking applications in Vietnam, having a wide network of branches and ATMs all across the country. It’s no exaggeration to say this, but it’s a popular choice for many locals and foreigners in the country.
HSBC (Online) – HSBC is a famous platform because it’s an international bank. Meanwhile, it could be an excellent choice if you live in big cities such as Da Nang, Ho Chi Minh, and many others.
VietinBank (Online) – The VietinBank is the largest state-owned bank in the country. However, this bank also has a wide network of branches all over the country, including rural areas.
International Money Transfer in Vietnam
Transferring money to another country in Vietnam can be quite complicated. According to the Vietnamese government, foreigners can remit and carry money overseas if they have foreign currency in their accounts. Also, international transfer fees are varied by different banks in Vietnam.
Furthermore, we advise you to check your bank first to avoid unnecessary hassle. Moreover, it’s not all local banks that offer international money transfers. With this in mind, let’s move further by explaining the other types of banks in the country.
2. Vietnam Business Account
Having a business account is not compulsory in Vietnam if your business doesn’t have any transactions above VND 20 million. Besides, even though Vietnam law doesn’t have any regulations that directly require enterprises to have a business bank account, you can open a business account if you have up to VND 20 million, as mentioned earlier.
On the other hand, opening a foreign business account can be complicated, unlike other accounts in the country. Without further ado, let’s quickly walk you through the various types of business bank account that you must register in the country.
Investment Capital Account (Vietnam)
The investment capital account allows foreigners to send and receive money, including direct investment capital account and other transactions. Meanwhile, there are certain restrictions if you open this kind of account. Most times, it has a daily transaction limit, and you may not be able to send/receive if the amount exceeds the limit.
Requirements for Opening a Business Bank Account
As of 2021, it’s crucial to know the requirements to open a business account before you dabble into it. However, opening a business bank account in Vietnam is a bit trickier than a personal account. Without further ado, below are the requirements to open a business bank account.
- Verified application form by the bank, but generally, it required transaction name, headquarter address, transaction address, business sector, information about your company’s legal representative, information about your chief accountant, seal sample, and your signature.
- Proofs that your company is established in the country, including their operation license, business registration certificate, establishment decision
- Documents about a legal representative or authorized representative of your company with a valid identity or passport
Furthermore, if you plan on living and working in Vietnam in today’s digital world, obtaining a bank account is quite essential. Opening a bank account in Vietnam, no matter how many regulations, is relatively easy as long as you provide the necessary documents as mentioned above.
Foreign Currency Deposit Accounts
A foreign currency deposit account is used to bring foreign investors capital and profit into and out of the country. In Vietnam, FIEs will have to exchange this foreign currency to VND by selling it to the bank licensed to make such transactions. This foreign currency account is used for the following purposes.
- Remittance from overseas and revenues generated from exports of goods and services
- Domestic transfers within the country, including those resulting from the issuance of commercial papers in foreign currency and their interest, and buying foreign currency from the credit institution.
- Cash deposits in the country, including those for a resident organization allowed by the State Bank to collect foreign currency through exporting commodities and services. Not only have that, but also function by exporting cross-bordered with the certification of bordered customs.
- Transactions, and payments including those for imported commodities and services with their related cost arisen
- Available to foreigners that need foreign currency loans borrowed from domestic banks and foreign loans following the financial institution laws and regulations.
- Organization staff who are sent abroad can also open this account to pay for salary, bonuses, and other allowances to non-residents and foreign residents working for the organization
- Capital contribution for implementing investment projects as regulated by the law of investment is also another purpose of opening this kind of account
- Investment in securities and commercial papers issued in a foreign currency and principal/interest payment
- Other purposes of opening this kind of account include notable transactions in account transfer or cash deposit having a license by the Governor of the State Bank according to law.
Why You Should Open a Bank Account
If you’ve been planning to move to Vietnam and you’re just wondering how you can open a bank account, you should at least get a glimpse by now. There are plenty of benefits to open a local bank account. Oftentimes, it’s needed for you to stay in Vietnam for a long term, at least if you work there.
In this article, we have unleashed why you should consider opening a bank account in the country, the documents required, what banks we recommend (the best banks), and many others. Therefore, let’s get started and review why you should open a bank account in Vietnam after your relocation process.
Reduced/Removed Transfer Charges
By opening a bank account in Vietnam, you have cut off the transaction charges. With this in mind, you can save plenty of money. Let’s say that you don’t have a local bank account and you want to use a debit or credit card from your home country. First, you should know that the exchange rate would be bad. On top of that, overseas banks charge a withdrawal fee of USD is a lot of money. So, it would be better to open a local bank account to receive and even send money to your family and friends.
Safety and Convenience
Safety and convenience usage of the banking system is another factor that contributes to why you should open a bank account in Vietnam. This is because; if you have a local bank account, you can withdraw a lower amount of money at the time you need it.
On the flip side, foreigners who don’t have any local bank accounts often withdraw VND 3 million at a time to save money on withdrawal fees, thereby ending up having a thick wad in their wallets. This may not seem convenient and even not safe either, as the risk of coming across pickpockets is higher compared to other Western countries.
Utilities and Other Bills Payment
As a newbie coming to Vietnam for the first time, it’s essential to open a bank account to pay your utility bills. Moreover, companies like gyms often deduct monthly subscription fees from your local bank account overseas. This way, many foreigners who stay for a long period become significantly more manageable by having a local bank account in the country.
Best Banks for Foreigners in Vietnam
In recent years, there are many types of bank account in Vietnam. As of today, we have compiled the best banks operated by foreigners in the country. By knowing these banks, you’ll understand the ones with the most beneficial banking system. Let’s quickly walk you through the process below.
1. ANZ Bank in Vietnam
Australia and New Zealand Banking Group Limited have been in existence since 1993 in Vietnam. Although this bank has fewer branches compared to some of the bigger banks but the benefits of using this bank in modern years cannot be overemphasized. Let’s quickly highlight some of these bank benefits.
Benefits
The benefits that you will receive from using this bank account are incredibly much. While the banking services are limitless, you’ll enjoy fast transaction speed, convenience, effectiveness, and reasonable charges. Aside from this fact, they even offer new sophisticated tools, including account aggregation, rate alerts, and other portfolio management tools. Other benefits include; free checkbook, easy transactions, and ANZ Smart Account options.
2. VietinBank for Foreigners
The VietinBank for foreigners is a state-owned Vietnamese bank, and it happens to be the biggest in the country. Obviously, this bank is one of the top choices for many foreigners and locals. They have a well-structured banking system. Now, let’s quickly go through the benefits as stated below.
Benefits
- You can trade in multiple currencies, including EUR and USD, if you open this bank account
- The account owner is transferable while the deposits are insured
- The account can be used as collateral for loans in the country
- This bank has an attractive interest rate, higher than normal interest rates
Vietcombank for Foreigners
The Vietcombank was founded in 1893, known as a commercial bank operating in the country. They have many ATMs operating in the country, and they are popular among residents in Vietnam. Also, this bank has played a huge part in post-war reconstruction and economic revival in Vietnam.
Benefits
- This is one of the best banking systems in the country with a fast speed and internet banking system
- They have one of the most comprehensive annual evaluations that capture the quality and sustainability of the banks’ balance sheets in the Asia Pacific.
- You can get access to credit and debit cards at your wish
- They have plenty of ATMs and an online banking system
Shinhan Bank in Vietnam
The Shinhan bank was the first bank to operate in Korea and having it headquarter in Seoul. Due to the large Korean expat community in Vietnam, the bank set up numerous branches and several ATMs. If you’re looking for the best bank to open, this is one of a kind.
Benefits
- You’ll have exclusive privilege when applying for a tourist visa to South Korea
- As a foreigner, you’ll also have a Golf privilege at the leading golf courses
- You’ll have access to many ATMs and branches in the big cities and areas.
Frequently Asked Questions about Vietnam Banks
What’s the alternative for the banking system?
If we truly get the questions right, you’re asking what to do if you cannot open a bank account in the country. If that sounds like a yes or we probably guess right, you should consider using an online transfer service such as Wise, at least when making online transactions to the locals or citizens.
What are the best banks aside from the ones listed?
There are many types of bank account in the country. However, it’s impossible to state all of them, but we can keep updating you if you follow this platform often. Meanwhile, some of the ones that are also considered include Military bank, maritime bank, Saigon Commercial Bank, and many others, to mention a few.
Is it safe to open a bank account?
Of course, it is safe to open a bank account in Vietnam. For expats who wish to settle in Vietnam for several months to travel over for a long time, it is often recommended to open a bank account with the local Vietnamese bank, as mentioned earlier.
Do expats pay tax in Vietnam today?
Well, all expats are mandated to pay a progressive tax ranging from 5 percent to 35 percent, while a flat rate of 25 percent applies to non-residents.
Conclusion
Opening a bank account is one of the first things to consider after relocating to Vietnam. It’s often better to convert currency at the bank instead of using a third-party application. Nonetheless, explore our guides to help you get more information about opening a bank account in Vietnam.
