China-Vietnam Two-Way Cross-Border Cash Pooling Structure

Service Scope:

• Map fund flows among China HQ, Hong Kong/Singapore platforms, Vietnam subsidiaries, suppliers and customers

• Assess compatibility between China-side cash pooling and Vietnam foreign exchange controls

• Design Vietnam-side account structure: DICA, operating account, foreign loan account, indirect investment account and intercompany accounts

• Plan compliant routes for procurement payments, sales receipts, service fees, dividends, loans, advances and reimbursements

• Review tax and transfer pricing impact for interest, service fees, royalties, management fees and cost sharing

• Coordinate with banks in China and Vietnam on quota, currency, RMB settlement, FX registration and documents

• Build internal controls for payment approval, related-party contracts, invoices, customs declarations and bank records

• Identify compliance boundaries among cash pooling, foreign loans, current-account payments and profit repatriation

Process:

1. Collect group chart, bank accounts, transaction types and annual funding needs.

2. Separate capital, trade payments, service fees, group loans, dividends and reimbursements.

3. Assess whether China-side cash pool rules match Vietnam FX rules.

4. Design account matrix, fund routes, contract flow and document flow.

5. Pre-clear structure with banks and confirm required documents.

6. Prepare intercompany agreements, transfer pricing support and payment templates.

7. Pilot small-value transactions and review bank feedback.

8. Establish monthly cash forecast, related-party ledger and annual compliance review.