Vietnam central bank warns over illegal forex trade

According to the current law, only credit institutions with permission by the State Bank of Vietnam are allowed to provide foreign currency trading services and derivative services in the domestic and international markets.

The regulator has not licensed any forex trading floor to operate in Vietnam, so the trading activities are illegal. Organizations and individuals should do foreign currency transactions at the licensed credit institutions, he suggested.

“If individuals invest in forex, they are supporting the unlawful activities. The State Bank of Vietnam recommends people should not participate in the activities”, he warned.

Having the same point of view, leaders of the Ministry of Industry and Trade affirmed that the forex investment model has sign of illegal multi-level business, causing risks to investors.

Violators could be fine VND5 billion and five years in jail.