Direct Investment Capital Account (DICA) in Vietnam: The Essential Guide for Foreign Investors

For those investing in Vietnam, understanding the Direct Investment Capital Account (DICA) isn't optional,  it's the strategic decision and the cornerstone of legal compliance. Yet, countless foreign investors stumble on this critical requirement. Here's a comprehensive breakdown.

1.     What is a DICA Account?

A DICA (Direct Investment Capital Account) is a specialized bank account mandated by the State Bank of Vietnam for all foreign-invested enterprises (FDI). It's not just another bank account, it's the exclusive legal gateway for capital flows in and out of Vietnam.

Think of it as the official checkpoint: every dollar invested, every profit repatriated, every share transfer must pass through this account. Without it, investments are essentially trapped.

Essential Guide For Direct Investment Capital Account in Vietnam

2.     What Transactions Must Go Through DICA?

The DICA handles all capital-related transactions:

-       Initial charter capital contributions from foreign investors

-       Capital increases and additional contributions

-       Share transfers and M&A transactions

-       Profit and dividend repatriation to foreign shareholders

-       Capital withdrawals and liquidation proceeds

-       Foreign loan disbursements and repayments related to investments

Operating expenses like salaries, supplier payments, or taxes go through operational accounts, NOT the DICA.

3.     How Many DICA and Operational Accounts Can an FDI Have?

Here's where precision matters:

DICA Accounts:

• ONE DICA per currency denomination

• All DICAs must be held at ONE single licensed bank

• Example: If an Investment Registration Certificate (IRC) specifies USD, there can be one USD DICA. When the company has a foreign loan, it will be transferred to USD DICA if the loan is in USD or the company has to create another DICA in the loan’s currency.

Operational Accounts:

• Multiple VND payment accounts for daily operations (payroll, suppliers, taxes)

• Multiple foreign currency payment accounts for import/export and cross-border transactions

• These can be spread across different banks for convenience

4.     Which Banks Can Open DICA Accounts?

Only State Bank of Vietnam (SBV)-licensed banks can host DICA accounts. There are two main categories:

Foreign Banks in Vietnam:

• HSBC Vietnam (UK)

• Standard Chartered Vietnam (UK)

• Citibank Vietnam (US)

• BPCE Vietnam (France)

• Shinhan Bank Vietnam  (Korea)

These typically offer:

• Excellent online banking platforms

• Familiarity with international standards

• Strong compliance frameworks

• English-speaking relationship managers

Vietnamese Banks:

• Vietcombank (VCB)

• Techcombank (TCB)

• VietinBank

• BIDV

• MB Bank

These typically offer:

• Better local market knowledge

• Stronger government relationships

• Competitive fees

• Faster domestic transaction processing

5.     The 5 Most Common DICA Mistakes (And How to Avoid Them)

Mistake #1: Currency Mismatch Between DICA and IRC/ERC

This is a common scenario: The IRC/ERC states "charter capital: USD 100,000" but investors want to invest in EUR.

• The consequence? The State Bank may reject capital contributions. The 90-day deadline starts ticking from ERC issuance, and delays can trigger penalties or even charter capital reduction.

• The fix: Check IRC/ERC documents carefully. If it says USD, the DICA must be in USD. If investors want to invest in EUR/GBP/other currency, it must be stated in the incorporation documents submitted to the government.

Mistake #2: Not Opening a DICA at All

Some investors think: "A regular business account will suffice." This is incorrect.

• The consequence? Banks will refuse to process capital contributions. The investment isn't legally recognized. Profit repatriation becomes impossible. There are fines of VND 10-250 million under Decree 340/2025/ND-CP.

• The fix: Open a DICA immediately after receiving the Enterprise Registration Certificate. Delays create complications.

Mistake #3: Investing More Than the Registered Charter Capital

Here's a scenario that occurs frequently: An IRC states USD 100,000 charter capital, but investors transfer USD 150,000 to the DICA, thinking "more capital is better."

• The consequence? Some banks refuse the transaction. Some banks let it pass but this move will create complexities in the accounting book after.

• The fix: Transfer EXACTLY the amount stated in the IRC/ERC, no more, no less. For additional working capital beyond registered charter capital, there are proper channels:

  • Increase charter capital officially (requires IRC/ERC amendment)

  • Use shareholder loans (properly documented and registered)

  • Receive invoiced amounts from the parent company

Remember: Precision matters. USD 102,595 means USD 102,595, not USD 102,600 nor USD 103,000. Exact amount, exact currency.

Mistake #4: Choosing the Wrong Bank Without Research                           

Many investors simply pick the bank where they already have a personal account, or the one closest to their office.

• The consequence? This can result in slow processing, poor customer service for FDI transactions, hidden fees, or limited foreign currency services when profit repatriation is needed.

In some cases, it blocks the profit repatriation.

• The fix: Compare at least 3 banks specifically for FDI services before deciding.

Mistake #5: Missing the 90-Day Capital Contribution Deadline

There is a 90-day window from ERC issuance to complete charter capital contribution through the DICA.

• The consequence? Authorities can reduce charter capital, suspend the Investment Registration Certificate, or in severe cases, revoke business licenses.

• The fix: Transfer capital immediately, don’t wait until day 89.

6.     Recommendations for Foreign Investors

Advice 1: Get Documentation Right from Day One

Before submitting company establishment documents:

• Define the exact currency of investment (USD, EUR, VND, etc.)

• Specify the precise investment amount

• Ensure these details match across IRC and ERC applications

• Most law firms default to USD, verify this aligns with actual funding sources

Advice 2: Compare Banks Strategically

This decision shouldn't be rushed. Evaluate at least 3 banks across these criteria:

For DICA banks, prioritize:

✓ Experience with FDI transactions

✓ Smooth capital contribution processing

✓ Quality of relationship manager support

For operational bank(s), prioritize:

✓ Competitive forex rates

✓ Online banking functionality

✓ Overall banking relationship of the group/parent company

✓ Branch network and accessibility

Pro tip: DICA banks and operational banks don't have to be the same. Many sophisticated investors use international banks for DICA (better for repatriation) and local banks for operations (better for daily transactions).

Final Thoughts

The DICA isn't just a regulatory hurdle, it's the foundation of legal investment structure in Vietnam. Getting it right ensures smooth capital flows. Getting it wrong leads to delays, penalties, and operational paralysis.

Vietnam's investment landscape is incredibly dynamic and rewarding, but it demands precision on fundamentals like DICA compliance. Taking time to understand these requirements upfront and working with experienced banking partners saves significant headaches down the road.

Questions about setting up DICA accounts or choosing the right bank for FDI? Please contact us.