Estimated reading time: 9 minutes

Sending money to Vietnam can be a complex task, especially for expats. With a wide range of options available, it is essential to consider various factors when choosing the right service. With the evolution of digital apps and fintech, international banking has entered a new era. This article aims to compare and detail the foreign services provided by Xoom, Wise, Remitly, Western Union, Bunq, and Instarem. Additionally, it will describe the services offered by Vietnamese companies. By exploring these options, we can determine the best way for expats and Vietnamese citizens to send money to Vietnam.

Money Transfer Services for Expats

When comparing foreign services, several factors come into play, including exchange rates, fees, transfer speed, and reliability. Let's take a closer look at the services offered by each company.

This is part 2 of a 2 part series on transferring money in and out of Vietnam.

Xoom: Xoom, a Paypal service, is a popular option for sending money to Vietnam. They have partnerships with Vietcombank and various jewelry shops, allowing recipients to withdraw money by presenting a code along with their passport. Xoom's service provides convenience and flexibility, making it a viable choice.

Wise (formerly TransferWise): Wise is renowned for its competitive exchange rates and low fees. It offers fast and secure transfers to Vietnam, ensuring that your money reaches its destination promptly. Wise is widely trusted for its transparency and reliability.

Remitly: Remitly is another popular choice for sending money to Vietnam. They offer competitive exchange rates and a user-friendly platform, making it easy to transfer funds. Remitly also provides different delivery options, including direct deposit and cash pickup.

Western Union: Western Union is a well-established company with an extensive network worldwide. They offer multiple options for sending money to Vietnam, including bank transfers, cash pickups, and mobile wallet deposits. Western Union's wide accessibility makes it a convenient choice for many.

Bunq: Bunq is a digital bank that offers international money transfers. While their services are not specifically tailored to Vietnam, they provide a reliable platform for sending money globally. Bunq is known for its innovative features and user-friendly interface.

Instarem: Instarem is a digital cross-border payments platform that offers competitive exchange rates and low fees. They provide secure and quick transfers to Vietnam, making it a suitable option for sending money.

These services can also be useful for Vietnamese citizens. Andy, a Vietnamese citizen from Ho Chi Minh City, explains how he takes advantage of Xoom: “My relatives send me money from time to time via Xoom service. Xoom has some agreement with Vietcombank and some jewelry shops. They send me a code. With it and my passport, I can go and withdraw money at a VietcomBank counter or at the jewelry shops.”

Vietnam money transfer services

Apart from these foreign services, there are local Vietnamese providers that offer their own unique services:

Momo: Momo is a popular mobile wallet in Vietnam that allows users to transfer money to other individuals, pay bills, and make online purchases. It provides a convenient way to send money domestically within Vietnam.

VNPT: VNPT is a leading telecommunications company in Vietnam that offers various financial services, including money transfers. Their services are widely used within the country, providing a reliable option for local money transfers.

Napas: Napas is the National Payment Corporation of Vietnam, responsible for facilitating electronic payments in the country. While not solely focused on money transfers, Napas plays a crucial role in enabling secure and efficient transactions within Vietnam.

Vietnam Banks and Money Transfer Risks

Vietnamese banks have certain measures in place to monitor the transfer of money into Vietnam. These measures are primarily aimed at ensuring compliance with regulations, preventing money laundering, and maintaining financial stability. Here are some ways Vietnamese banks monitor money transfers into Vietnam:

Anti-Money Laundering (AML) Regulations

Vietnamese banks adhere to strict AML regulations to detect and prevent money laundering activities. They implement Know Your Customer (KYC) procedures, requiring customers to provide identification documents and information about the source of funds. Banks also conduct risk assessments and employ transaction monitoring systems to identify suspicious activities.

Reporting Requirements

Vietnamese banks are required to report large or suspicious transactions to the authorities. The State Bank of Vietnam (SBV), the country's central bank, sets thresholds for reporting cash transactions and electronic transfers. Banks submit transaction reports to the Financial Intelligence Unit (FIU) of Vietnam, which analyzes the data and investigates potential cases of financial crime.

International Cooperation

Vietnamese banks collaborate with international financial institutions and comply with international standards to combat money laundering and terrorist financing. They exchange information with foreign counterparts and cooperate in investigations related to cross-border transactions.

Cross-Border Transfer Monitoring

Vietnamese banks closely monitor cross-border transfers, especially larger transactions. They verify the legitimacy of funds and scrutinize the purpose of the transfer. Banks may request supporting documents or additional information to ensure compliance with regulations.

Risk-Based Approach

Vietnamese banks adopt a risk-based approach to monitor money transfers. Higher-risk transactions or customers undergo enhanced due diligence procedures, which may involve additional verification steps and documentation requirements.

Technological Solutions

Vietnamese banks leverage technological solutions, such as transaction monitoring systems and artificial intelligence, to analyze patterns and detect potential suspicious transactions. These systems can flag unusual activities or transactions that deviate from established patterns, prompting further investigation.

Cooperation with Regulatory Authorities

Vietnamese banks work closely with regulatory authorities, including the SBV and FIU, to stay updated on regulatory changes and receive guidance on compliance. Regular audits and inspections are conducted to ensure banks are adhering to the prescribed rules and regulations.

It is important to note that the specific monitoring practices may vary among different banks and financial institutions in Vietnam. Additionally, regulations and monitoring practices are subject to change as authorities adapt to evolving financial crime risks and international standards.

If you require more detailed information on the specific monitoring practices of Vietnamese banks, reach out to the State Bank of Vietnam or individual banks directly for the most up-to-date and accurate information.

Using Bitcoin in Vietnam

The use of Bitcoin and other cryptocurrencies in Vietnam is a topic that has evolved over time. Let's explore the current state of Bitcoin usage in Vietnam:

Legal Status

The State Bank of Vietnam (SBV), the country's central bank, does not recognize Bitcoin and other cryptocurrencies as legal tender. In 2018, the SBV issued a statement declaring that cryptocurrency-related activities, including issuance, distribution, and use for payments, are not legally recognized and may be subject to penalties.

Cryptocurrency Exchanges

Despite the lack of legal recognition, cryptocurrency exchanges have operated in Vietnam. However, in April 2018, the Vietnamese government enacted regulations that required cryptocurrency exchanges to register with the authorities and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. This move aimed to enhance transparency and prevent illicit activities.

Cryptocurrency Trading

While not legally recognized, cryptocurrency trading has taken place in Vietnam through peer-to-peer platforms and international exchanges. Vietnamese individuals and entities have been involved in trading Bitcoin and other cryptocurrencies, often using online platforms and over-the-counter (OTC) transactions.

Payment Restrictions

As cryptocurrencies are not considered legal tender, their use for everyday transactions, such as buying goods and services, is limited in Vietnam. Traditional fiat currencies, primarily the Vietnamese Dong (VND), are the accepted means of payment within the country.

Government Warnings

The Vietnamese government has issued several warnings about the risks associated with cryptocurrencies. These warnings emphasize the speculative nature of cryptocurrencies, potential price volatility, and the lack of legal protections for users. The government advises caution when engaging in cryptocurrency-related activities.

Blockchain Technology

While cryptocurrencies face regulatory restrictions, there is growing interest in the underlying blockchain technology in Vietnam. The government has acknowledged the potential of blockchain for various sectors, including finance, supply chain management, and government services. Initiatives exploring blockchain technology and its applications have emerged in the country.

It is important to note that the situation regarding cryptocurrencies can evolve, and regulations may change over time. If you are interested in using or investing in cryptocurrencies in Vietnam, it is advisable to stay updated on the latest legal and regulatory developments and seek guidance from legal and financial professionals who are knowledgeable in this area.

So, What is the Best Way to Send Money to Vietnam?

Determining the best way to send money to Vietnam depends on various factors, including cost, convenience, speed, and reliability. Here are some popular options to consider:

1. International Money Transfer Services: Services like Wise (formerly TransferWise), Xoom, Remitly, and Instarem offer competitive exchange rates, low fees, and fast transfers. They provide user-friendly online platforms or mobile apps for easy money transfers to Vietnam.
2. Bank Transfers: Transferring funds directly from your bank account to a Vietnamese bank account can be a reliable option. However, banks often charge higher fees for international transfers, and exchange rates may not be as favorable as specialized money transfer services.
3. Online Payment Platforms: Platforms like PayPal and Skrill allow you to send money internationally, including to Vietnam. These platforms provide ease of use and can be convenient if both the sender and recipient have accounts.
4. Cash Pickup Services: Companies like Western Union and MoneyGram offer cash pickup services in Vietnam. The sender can initiate a transfer online or at a physical location, and the recipient can collect the funds in cash from designated pickup points in Vietnam.
5. Mobile Wallets: Mobile wallet services such as Momo and VNPay are popular in Vietnam and allow for domestic money transfers. These wallets often offer additional features like bill payments and online purchases within Vietnam.

When deciding the best option for sending money to Vietnam, it is essential to consider the following:

• Exchange Rates: Compare the exchange rates offered by different providers to ensure you get the most value for your money.
• Transfer Fees: Consider the fees associated with each service. Some providers offer lower fees or even fee-free transfers for certain transactions.
• Transfer Speed: If speed is crucial, look for services that offer fast transfers, typically within minutes or a few business days.
• Convenience: Consider the convenience factor, such as the availability of online platforms, mobile apps, or physical locations for initiating transfers.
• Safety and Security: Opt for reputable and regulated service providers to ensure the security of your funds and personal information.
• Customer Support: Consider the availability and quality of customer support in case you encounter any issues during the transfer process.

It is recommended to compare multiple options, taking into account the specific transfer amount and your individual requirements. This way, you can choose the service that offers the best combination of cost-effectiveness, convenience, and reliability for your needs.

Please note that exchange rates, fees, and service availability may change over time, so it is advisable to check the latest information from the service providers directly before making a decision.

Estimated reading time: 7 minutes

Getting a TRC , a business Visa or Work permit in Vietnam; starting 2022 the Resident cards requirements are tougher. Expats who need a TRC Temporary Resident Card in Vietnam will find it difficult.

Since march 2022, re-opening of Vietnam, the common thinking was open bar as the country was strictly closed to tourists and new expats or employees for 2 long years, since March 2020. Unfortunately, the door is half opened due to various immigration visa abuses during Covid therefore, business visas and TRC Temporary resident card requirements are tougher.
The current joke between expats goes ‘How much does it cost to get a TRC in Vietnam: zero or 50%+ of your assets! As the options are #1 find a Vietnam-based employer who will pay for the TRC or #2 marry a Vietnamese in a hurry…”

Who and what is the procedure to apply? What do you need submit to get a TRC?

Repeat abuses renewing 90-day tourist visa as Work permit and TRC

A TRC is the continuation of a Work permit visa.

At the moment, a TRC is granted for foreigners with work permit or work permit exemption certificate, those being the spouse or child of a Vietnamese citizen, foreign investor, etc. As such, the documents to apply for TRC may vary.

In the past, many foreigners used Visa 90-days and extensions to work, enjoy life in Vietnam or retire. Let alone completely illegal trades of all sorts as pinpointed at the 31-march-2022 Min of Interior congress.

Daily bus loads of Expats visa runs to the Moc Bai, were organized to ‘renew’ their visa to continue whatever they were doing ‘illegally’ on an immigration police standpoint. 

Some even mistake the business visa for a work permit. 

Using 90-day visa as a TRC is illegal

Since the opening of Vietnam, for many reasons, foreigners have wanted to stay and work, for its ‘cheap dolce vita’, without working or TRC resident card, simply using a tourist or business visa. 

From 1995-to-2020, it was left to tourists, visa agencies, provincial immigration offices and Embassies to ‘check’ and issue TRC and visas; with the Ministry of Interior stamping what was supposed to be legit demands.

A trade of visa, visa renewals were used instead of a legal work contract and permit/visa. Of course the state budget was missing undeclared workers, social security contributions and income taxes. But more importantly the lack of control of foreigners' presence and activities (ponzi schemes, illegal migrant workers etc…) 

Recent TRC traffic for fake investors and experts visa during the pandemic

During the pandemic, especially the lockdown, there was a dearth of visitors. In 2020 and 2021, only investors and experts were allowed to enter Vietnam.

Due to high demand to re-enter Vietnam, many agencies and companies faked documents to get the suitable investor or expert visa. Thus distorting the forecasts of post-Covid business recovery due to much lower foreign investors and factories in the making.

Changes in TRC procedure in Vietnam since April 2022

30-day tourist e-visa only via e-visa or agents/embassies

Extensions, all 90-day visas, Visa exemptions and TRC are processed by the Hanoi Vietnam central office by the Ministry of Interior.

The 3 main restrictions for visa are: 

• no more agent/embassy for visas over 30-day
• the sponsor is responsible for their ‘invited guest’ Entry and Exit of Vietnam
• Vietnam Immigration will list your history of visa purpose and usage

NB. Since 2015, visa issuance and renewal are computerized but not used much. 

Hanoi immigration centralized checks of 90 day Visa renewal reasons and frequency Vs TRC issuance

E-visa has been implemented for tourism

90-day renewals are now the exception rather than the norm. 

TRC and work permit renewals will be scrutinized if legitimate with the invitational sponsor/company.

NB. Due to the economic windfall of renewals in visa runs at the border still the 1-month extensions are still possible. 

The sponsor is responsible TRC or business visa Entry and Exit in Vietnam

When Vietnam immigration checks the Expat Work permit or the TRC expiry date and the resident is still in Vietnam, then they turn immediately to the ex-sponsor company or the new sponsor. Before a blind eye to this by the immigration police allowed an ecosystem of lucrative traffic across the layers of ‘processors’.

What are the current requirements for TRC or Work permit?

A TRC replaces your visa once you need an extension of the initial expiry duration of 1-to12 months). The main confusion with TRC is there are 2 types of TRC:

• LD1 can work with Work permit exemption (based on your type of visa)
• LD2 delivered Work permit holders

There are more TRC for Exempted Foreigners than Expat Workers employed.

There are 20 types of foreigners who can receive a work permit exemption, where as obviously work permit holders must be employed by a company.

Vietnam visa is classified into about 21 main types by the purpose of visit, namely DL, DN1, DN2, NG, DT1, DT2, DT3, DT4, LS,  DH, LV, LD1, LD2, HN, PV1, TT, SQ, etc.

Who is eligible for a TRC?

The recent amended decree dated 30-dec-2020 Article 154 of the Labor Code 45/2019/QH14 and Article 7 Decree No. 152/2020/ND-CP, regulates expat work permit and Foreigners Work exemption:

• TRC LD1 work permit exempted: list in 20 categories foreigners:
  • Investors in LLC company of at least VND 3 billion
  • Board of Directors of a JSC capital above VND 3 billion
  • head of representative office
  • Service provider less than 3 months/year 
  • Experts helping a company less than 3-months
  • Lawyers
  • Married to a Vietnamese citizen
  • Workers assigned by WTO to help Vietnam
  • Workers on ODA projects
  • Journalists appointed by Ministry of Foreign Affairs
  • teachers for diplomatic mission schools
  • Volunteers for Vietnam approved NGO
  • CEO and experts for less 30-day and 3 visits/year
  • International organization workers to implement agreements
  • Students and Interns
  • Relatives of members of a foreign diplomatic mission
  • Official Passports holder of state or political agencies
  • Head of representative offices
  • Researchers for Min of Education
  • Managers of International Treaties

• TRC LD2 Work permit: list in 3 categories:
  • Experts with a bachelor with 3 years experience, 
  • Workers at same position 5-years experience
  • CEO directors

How to apply for a TRC

The Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs is the agency authorized to certify foreign workers exempt from work permits.

After your work visa expires, the TRC application is fairly simple if the conditions of your continued employment or exemption are still in validity.

The application is straightforward and done this time by the immigration office, not the Ministry of Labor.

Conclusion

Now if you look for your first Work permit, the best advice would be:

1. to do your research and preliminary job search with various employers and interviews online. 
2. Then spot one company to send you an invitation for a 3-month business visa
3. Upon completion of the recruitment process, ask whoever is the successful employer to arrange your work permit and visa or à TRC for an employment period of more than 12-month.

You may also like:

See E-visa & travel Pass for Vietnam visitors

Vietnam ultimate experience: Motorbike Buying, owning, riding and Insuring for easy rides in the country fabulous landscapes

Enjoying ownership and riding a motorbike in Vietnam is on most Expat to-do-list. Nowadays, Vietnam has followed western countries, you need to do it by the rules.

You should also know the compulsory documents and insurances attached to riding à motorbike: namely driving license, moto compulsory insurance and travel or medical insurance validity.

Buying a motorbike in Vietnam

Buying, owning à motorbike sounds easy… but it is not. Most expatriates can not prove ownership of à motorbike

There are 2 situations possible:

1. Whether you buy à brand new moto from the dealership, they will need to arrange adequate paperworks so the moto is under your name. Issuing the green card ‘cavet’ (comes from France carte verte, ancient registration card)
2. Or it is 2nd hand, then you need to make sure you become the owner by changing the caveat to your name. Which again attracts 3 sets of checks:
   1. The name on cavet is matching the ID of the seller, and the seller register à new cavet under your name
   2. the name does not match then the seller needs to find the 1st owner of the cavet
   3. you can not find the original owner, therefore you can not legally be the owner. Any written paper is useless as proof as the actual and valid cavet is the document the police would want to see. Of course, they have the registration number and the current owner on their computer system.

NB. Registering ownership by issuing à cavet is subject to your legal status, duration of your stay in Vietnam and your immigration visa type.

Owning & Riding a motorbike in Vietnam

Now you own a motorbike for which you need à driving license, so you can drive legally.  Subject to: you are on à visa stay more than 3-months, http://sgtvt.hochiminhcity.gov.vn/huongdanthutuchanhchinh/Lists/Posts/Post.aspx?ID=206

You may fall into 3 categories, set aside the electric vehicles that are not considered motorbikes needing driving license:

1. You have à driving license valid in your home country that you can translate and convert into à Vietnamese driving license. It is easy if your country have exchange agreements with Vietnam and in à couple of days you are à happy legit driver.
2. You own à motorbike below 175cc, you will need the A1 license, then the above 1- converted license can be used or an easy test can be taken.
3. You purchased above 175cc motorbike then the A2 license  is what you will need.

IT IS IMPORTANT TO KNOW that depending on the medical insurance you purchased, in case of moto (or car) insurance in Vietnam, YOUR CLAIMS MAY NOT BE PAID if you can not prove you have a valid motorbike license at the time of the accident.

Note: If you dont speak Vietnamese, some expats managed to get their driving license, à good memory will help to answer the A1 license=21 questios out of 25  or the license A2=23 questions/25 questions (out of 200 for A1 / out of 450 for A2) within 19 minutes. Then the practice ride on the street.

https://hoclaixemoto.com/thi-bang-lai-xe-may-a1-online/

Motorbike Insurance in Vietnam

There are 3 parts of the insurance purchase (1 compulsory, 2 voluntary) when it comes to vehicles, especially for moto insurance due to increased risk:

1. Compulsory 3rd party liability insurance: when it comes to insuring, it is very easy as anyone can purchase the compulsory insurance for public liability at VND66,000/year that covers up to VND100Mio for bodily injury or material damage per occurrence. This is the yellow paper that is requested by the police and usually goes together with the motorbike, even new ones as it is… compulsory! Or you can buy in most petrol stations or renew it by calling the current issuer of the insurance that is most probably à mainstreet issuer like Bao Viet, Pijico, PetroVietnam...

Of course, some owners forget to renew yearly even though the police request it more and more so they can ‘fine’ you more.

You may want to buy additional voluntary insurance for:

1. The property value of your purchase
2. The passengers accident insurance for medical costs, disability or life protection

IMPORTANT NOTE: though anyone can purchase the insurance policy, the proceeds of the refund money for property will go to the cavet owner stated.

For driver or passengers medical treatment costs, the insurer will refund on nominated insured. For life and disability insurance the money will go to any legitimate driver and passenger regardless of nomination.

In conclusion

Vietnam riding is a lot of freedom, driving licenses and insurances have followed the same steps as the western countries. It is not because most locals dont play by the books and have their way around, that you should. For expatriates and long-term stay, it is best to spend the time making sure you really own on a cavet the moto you buy. And or course, you are not above the law, get a proper driving license issued by Vietnam authorities.