The Ministry of Finance’s Circular 200/2014/TT-BTC, dated 22 Dec 2014, governing the enterprise accounting regime, states in Point e, Clause 1, Article 67:
“-When the Investment License specifies that the charter capital of the enterprise is determined in a foreign currency equivalent to an amount of Vietnam Dong (VND), the determination of the investor’s capital contribution in foreign currency (excess, deficiency, or sufficient compared to the charter capital) is based on the amount of foreign currency actually contributed, regardless of the conversion of foreign currency into VND under the Investment License.
In case the Company maintain accounting record, prepare, and present financial statements in VND, when investors contribute capital in foreign currencies in accordance with the timetable, the accountant must apply the actual exchange rate at each time of actual contribution to convert it into VND, and record it in the owner’s invested capital and share capital surplus (if any).”
According to the above provisions, the Company must convert any capital contributions received in foreign currency into VND using the real exchange rate in effect at the time of the capital contribution, in which case there is no exchange rate difference.