An offer to “manage your forex account” with a fixed monthly return raises a practical question for traders based in Vietnam: is forex trading legal in Vietnam? The answer depends on whether you mean exchanging currency through an authorized institution, operating a local trading platform, or using an overseas broker.
Vietnamese forex regulations treat those activities differently. No forex trading platform has been licensed in Vietnam by the State Bank of Vietnam (SBV). Whether a trader faces penalties, and whether a platform is fraudulent, depends on the person’s role, the payment route, and how the platform operates.
In this article, Backcom.io compares the legal texts, SBV statements, and court cases, then sets out steps traders can take to protect themselves.
Is Forex Trading Legal In Vietnam? The Short Answer
Is forex trading legal in Vietnam? Buying or selling foreign currency through an authorized credit institution has a legal basis. The SBV has licensed no domestic forex trading platform and regards payments or transfers to such platforms as unauthorized. The texts reviewed do not expressly say whether an individual may or may not trade through an overseas broker.
The word “forex” covers three distinct activities here:
- Currency exchange through an authorized credit institution: Article 28(2) of the Ordinance on Foreign Exchange addresses transactions between authorized credit institutions and customers. Buying or selling elsewhere may attract penalties under Article 27 of Decree 340/2025/ND-CP.
- A domestic forex platform or fake trading site: The SBV has licensed no such platform. People who created fake sites to take clients’ money have faced criminal trials.
- An overseas broker: A licence issued abroad is not an SBV licence.
It is therefore inaccurate to say all foreign currency transactions are banned. Equally, a foreign licence does not establish that trading with an overseas broker is permitted under Vietnam’s forex regulations.
Forex Regulations In Vietnam: The Ordinance, Decree 340 And The SBV’s Position
Forex regulations in Vietnam govern how foreign currency is bought, transferred, and used. The Ordinance defines who may provide services, while Decree 340 sets administrative penalties.
The Ordinance On Foreign Exchange: Who May Provide Forex Services?
The Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11, amended by Ordinance 06/2013/UBTVQH13, appears in consolidated text 140/2026/VBHN-PL-VPQH dated 23 September 2026. Three provisions stand out:
- Article 4(20): Defines foreign exchange business as foreign exchange activity conducted by an authorized credit institution.
- Article 36(1): Credit institutions, foreign bank branches, and other organizations need written SBV approval to conduct foreign exchange business or provide foreign exchange services.
- Article 22: Restricts the use of foreign exchange in Vietnam. Law 23/2026/QH16 repeals Article 22 from 1 December 2026, moving the corresponding rule to Article 31a of the Law on the State Bank of Vietnam.
Read the consolidated Ordinance on Foreign Exchange, 140/2026/VBHN-PL-VPQH (in Vietnamese) in the Official Gazette.
Decree 340/2025/ND-CP: Penalties Replacing Decree 88/2019
Decree 340/2025/ND-CP was issued on 25 December 2025 and took effect on 9 February 2026. Under Article 72, it replaces Decrees 88/2019/ND-CP and 143/2021/ND-CP. Article 5(3)(a) makes Chapter II fines for organizations twice the individual amounts.
| Conduct | Article 27 provision | Individual | Organization |
|---|---|---|---|
| Buying or selling foreign currency between individuals or at an unauthorized location, under USD 1,000, first offense | Clause 1 | Warning | Warning |
| The same conduct, USD 1,000 or more | Clauses 2, 3, 5 | VND 10–100 million, depending on value | VND 20–200 million, depending on value |
| Transferring or carrying foreign currency or Vietnamese dong abroad contrary to regulations | Clause 4(h) | VND 30–50 million | VND 60–100 million |
| Opening or using an overseas foreign currency account contrary to regulations | Clause 5(a) | VND 80–100 million | VND 160–200 million |
| Conducting foreign exchange activity without a licence | Clause 8(c) | VND 200–250 million | VND 400–500 million |
Decree 340/2025/ND-CP was checked against the Official Gazette on 14 October 2026.
Article 27(10)(a) provides for confiscation of foreign currency and Vietnamese dong in conduct covered by Clause 2 and Clause 4(h). The VND 200–250 million fine concerns unlicensed foreign exchange activity; it is not an automatic fine for someone who only trades. See Decree 340/2025/ND-CP in the Official Gazette (in Vietnamese).
What Has The State Bank Said About Forex Platforms?
Three SBV statements help explain its position:
- 2 December 2020: Standing Deputy Governor Dao Minh Tu warned that people deceived into losing their capital might “not be protected by law.” This was a statement, not a statutory provision.
- 11 November 2024: Governor Nguyen Thi Hong told the National Assembly that the SBV had not licensed any forex trading platform.
- May 2025: Press reports of an SBV submission to the National Assembly said forex platforms fall outside permitted foreign exchange activity. Payments and transfers to them are unauthorized under forex regulations.
Are There Licensed Forex Brokers In Vietnam?
There are no SBV-licensed forex trading platforms in Vietnam, according to the governor’s statement on 11 November 2024 and reporting on the SBV’s May 2025 submission. Treat any claim of domestic authorization as something to verify.
A Foreign Licence Is Not An SBV Licence
Overseas brokers commonly offer individuals leveraged trading through contracts for difference (CFDs). That differs from buying currency at a bank. Two distinctions matter:
- The FCA, ASIC, or CySEC licenses a particular legal entity for the activities covered by its authorization.
- Such a licence is not an SBV licence and does not show that the broker may establish a forex trading platform in Vietnam.
Backcom.io does not offer a legal ruling on whether an individual’s trades with an overseas broker are permitted or unlawful. The facts of the account and transfers need case-specific review.
How To Check A Broker’s FCA, ASIC Or CySEC Licence
Checking a licence identifies the entity offering the service, rather than simply confirming that a familiar brand exists. Use this sequence:
- Find the legal entity and licence number: Check the account agreement and the broker’s legal disclosures.
- Search the regulator: Look up the name or FRN on the FCA Register. Use the official ASIC and CySEC registers for their respective licences.
- Match the details: Compare the entity name, licence number, and published domain.
- Identify your account provider: One group company’s licence does not automatically cover an account held with another entity.
The seven criteria for choosing a reputable forex broker provide further checks.
Can You Get Arrested For Forex Trading In Vietnam? Trader, Broker And Platform Roles
Can you get arrested for forex trading in Vietnam? The answer turns on what you did, not the label “forex.” The administrative fines below are individual amounts under Decree 340/2025/ND-CP; organizations face twice those amounts.
| Role | Conduct to assess | Administrative penalty | Criminal exposure |
|---|---|---|---|
| Person who only trades | Improper transfers or currency exchange, or borrowing a payment account | Warning to VND 100 million under Article 27, depending on conduct. Borrowing an account: VND 100–150 million under Article 30(5)(a) | Depositors were victims in the three cases below |
| Unlicensed foreign exchange business or service provider | Conducting foreign exchange activity without a licence | VND 200–250 million under Article 27(8)(c) | Article 206(1)(i) if damage reaches VND 100 million and the elements of the offense are met |
| Creator or operator of a fake platform | Building a site to appropriate clients’ funds | Assessed according to the conduct | Article 174 or 290, depending on the case |
These provisions were checked against Decree 340/2025/ND-CP and consolidated Penal Code text 135/VBHN-VPQH dated 5 September 2025, as at 14 October 2026. For property worth at least VND 500 million, Article 174 provides a 12–20 year prison term or life imprisonment; Article 290(4) provides 12–20 years.
A Trader’s Administrative Risk And Risk Of Losing Capital
For someone who only places trades, the question of arrest still requires an assessment of the actual conduct. Two practical risks are:
- Payment accounts: Borrowing or lending one falls under Article 30(5)(a).
- Trading capital: Margin and leverage can magnify losses quickly. Understand margin and leverage before taking a position.
Fake Forex Platform Cases Tried Between 2023 And 2025
Three cases reported by the press show how fake platforms were prosecuted:
| Case | Court and date reported | Charge | Highest sentence | Main method |
|---|---|---|---|---|
| Rforex | Hanoi People’s Court ruled on 25 October 2023 | Article 290 | 8 years in prison | Orders were not routed to the market; data was changed and connections blocked |
| “Forex Toan Cau” | Ho Chi Minh City People’s Court heard the case; VnExpress reported it on 31 July 2023 | Fraudulent appropriation of property | CEO received 18 years in prison | Promised 3.5–5% monthly returns; took over VND 25 billion from 45 customers |
| Bui Trung Duc group | Hanoi People’s Court ruled on 23 September 2025 | Article 174 | Bui Trung Duc received 18 years in prison | Shell companies and software disconnected from the market; 12 victims lost about VND 11 billion |
This summary draws on CAND, VietnamPlus, VnExpress, and VietNamNet. Sentences reflect reporting at publication. Nhan Dan reported on 8 October 2026 that Pho Duc Nam (“Mr Pips”) and 187 defendants had been indicted in a case involving fake trading websites. The Hanoi People’s Court was expected to open the first-instance trial on 26 October 2026.
Is Forex Trading A Scam? How Fake Platforms Operate
Is forex trading a scam? The market for currency pairs is not itself a scam. Fraud arises when an organization uses the forex label to collect money, promises returns, or displays trades on software that is not connected to the market.
The Rforex and Bui Trung Duc cases involved manipulated data or blocked connections. “Forex Toan Cau” used fixed-return promises. Watch for five signs:
- Guaranteed returns or managed-trading offers: “Forex Toan Cau” promised 3.5–5% a month.
- Claims of an SBV-licensed forex platform in Vietnam: That conflicts with the SBV’s published position.
- A name resembling an international brand: The legal entity, licence number, or domain cannot be verified with the regulator.
- Deposits to a personal bank account: It becomes hard to establish who actually receives and holds the funds.
- Balance changes or a blocked account: Data changes unexpectedly or access disappears when a withdrawal is requested.
Read the guide to signs of a forex broker scam for further precautions.
How To Protect Yourself: Seven Checks For Forex Traders
The legal position for forex traders in Vietnam depends on the activity, and the reviewed texts do not expressly address every overseas-broker scenario. These seven steps can still reduce risk:
- Check the legal entity: The company in your account agreement should match the licensed entity’s record.
- Use the regulator’s register: An image of a licence shared in a chat does not establish the scope of authorization.
- Keep control of your trading account: Giving someone else access makes orders and money flows harder to track.
- Do not borrow or lend a payment account: Article 30(5)(a) of Decree 340/2025/ND-CP sets an individual fine of VND 100–150 million. Organizations face twice that amount.
- Question fixed returns: Promises of steady payments may be used to pressure you into adding funds.
- Keep evidence: Save agreements, bank statements, order history, and messages for a report or legal consultation.
- Limit potential losses: Decide what you can afford to lose before each trade and review money management and position sizing.
Frequently Asked Questions (FAQ) About Forex In Vietnam
Is Forex Trading Legal In Vietnam If The Broker Has An FCA Licence?
An FCA licence alone does not establish that. It authorizes a specified entity under foreign law, while the SBV said in 2024 that it had licensed no forex platform in Vietnam. The texts reviewed do not expressly address an individual’s trading through an overseas broker. A trader should ask a lawyer to assess the actual account, conduct, and payment arrangements.
Why Do People Say Forex Is Banned In Vietnam?
That wording combines different activities. Article 28(2) of the Ordinance on Foreign Exchange provides a basis for customer transactions with authorized credit institutions. By contrast, the SBV’s May 2025 submission, as reported by the press, regarded transfers to forex platforms as unauthorized. Identify the activity and parties involved before applying either conclusion to your own situation.
Are Forex Broker Deposits And Withdrawals Through A Bank Illegal?
The SBV regarded transfers to forex platforms as unauthorized in its May 2025 submission, as reported by the press. Article 27(4)(h) of Decree 340/2025/ND-CP sets a VND 30–50 million individual fine for transferring foreign currency abroad contrary to regulations; organizations face twice that amount. Do not borrow someone else’s payment account or ask another person to transfer money for you.
Do Forex Profits Have To Be Taxed In Vietnam?
The specific income described has no express tax rule, according to the tax authority’s response dated 10 July 2026 (in Vietnamese). The Dong Thap provincial tax office said tax law does not specifically define taxable income from investment profits earned on overseas forex platforms. Keep supporting records. Income from a prop firm is a separate question.
Is Decree 88/2019 Still In Force?
No. Article 72 of Decree 340/2025/ND-CP replaced Decrees 88/2019/ND-CP and 143/2021/ND-CP from 9 February 2026. Article 27 of Decree 340 now governs administrative foreign exchange violations. Decree 284/2026/ND-CP, effective 1 September 2026, concerns penalties involving crypto assets and does not apply to forex.
Conclusion
Is forex trading legal in Vietnam? The answer depends on the precise activity. Currency transactions through authorized credit institutions have a legal basis. The SBV has licensed no domestic forex trading platform, and operators of fake platforms have faced criminal prosecution for taking clients’ money.
A trader should identify their role and payment route before judging legal exposure, then verify the contracting entity to assess fraud risk. The forex knowledge section and risk disclaimer offer further reading.
Disclaimer: Backcom.io compiled this information as at 14 October 2026 for reference only; it is neither legal nor investment advice. Law 23/2026/QH16 takes effect on 1 December 2026. Rules may change. Ask a lawyer or the State Bank of Vietnam about your specific circumstances.
