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[Charvo]

http://tuoitrenews.vn/business/37252/vietnam-cbank-wants-to-forbid-foreigners-from-opening-savings-accounts-in-local-currency

It looks like Vietnam wants to become anti-foreigner. If this is actually followed through like the law about foreigners not being able to deposit USD, then this would be problematic for long-term investment plans.

[mark_in_saigon]

I do not think they are anti foreigner. Compare to after our war, we were the devil. Now, we are really quite privileged. They are pragmatic. Of course, what the govt does is not the same as what the man on the street feels, also. They too wish they could keep their money in dollars.

Mainly, it is one of their tools to try to keep the value of their money higher. Notice how simple it is to get dollars made into dong, but how difficult it is for the reverse. Not anti foreigner, just trying to keep that dong in an upright position!

[Charvo]

[mark_in_saigon]

I think they want our money in their system, and they want to make it very difficult for us to take money we earn here out of their system. However, I find that it is a lot easier than before to get our money in. I also note the greater ease of visas, the bigger number of foreigners trying their hand at teaching here and the general acceptance of our presence in a positive way. Just saying, I do not think they are anti foreigner, I think they are anti whoever for a reason. Right now, there is a lot of anti China sentiment due to the maritime issue, and this actually causes them to lean into the west. Of course, it could change in the future. Hard to predict. I feel quite natural living here now, almost never get negative response when out and about, and never feel in danger because of who I am. Just the danger of driving and breathing like everyone faces.

Express services like Western Union and Moneygram are a lot more difficult than in the past, plus rather costly (sending in, probably almost impossible for sending out). ATM withdrawals forced smaller amounts per transaction beginning about 3 years ago, effectively increasing the percentage paid for your money from the west. One of my U.S. accounts now allows quite large withdrawals from the U.S. to here at a very small cost. I think it is like $5 on any amount up to 10 grand or so, something like that. So that is how I am pulling out, but pushing money back I think is quite hard. And, I think that is the nature of the beast. Costs are so low here, one brings his resources over and enjoys it, but very hard to transfer what this system really gives you back to our high cost environment. You really have to be here to get the good out of it. So the way I see it, if I work, whatever I earn here, I am gonna blow thru it here, not expecting to get rich on their deal. And I am damn sure not going to invest in real assets here, nothing I expect to sell later and take the money back out, or even transfer to another asset. Assets are soooo much safer back in the west, and ROI is far higher on the asset classes I know anything about.

Live it up, it aint gonna last forever.

[ExpatLuke]

Hmm, good thing I'm married to a local now. I can always use her account if they ban mine...

[Mattingly]

[mark_in_saigon]

By the way, my comment about Western Union and Moneygram being more difficult, that is on the U.S. end, or I guess we should say the western or corporate side. They do stupid bs like allow the transaction then not allow it when you try to pick it up in VN. Then the sender has to go confirm the transaction. Their online function is even worse. They take the transaction then negate it and cannot even tell you why. I do get the feeling that the U.S. is trying to make it hard for cash to slosh out of their system without knowing who it is going to, maybe the so called terrorism thing.

I was very pleased when I found Wells Fargo allows you to transfer larger amounts from your U.S. account to yourself here, and for very low fees. No delay, and you can do it from your computer. Anyway, the point is, VN is happy to get your dollars to you here from your U.S. sources, they just make it difficult for you to then take your money back out of here later. Another reason I would not make investments here. The only thing I return with is souvenirs and memories.

[Mattingly]

Excuse my ignorance on this topic,

To clarify:

Is the proposed ban on foreigner putting money in bank accounts

mean a foreigner

1. can only deposit into "term" accounts, say for one year?

2. if so, or not so, where would foreigner put any of their money they earn?

[BenE]