How to pay a US company legally from Vietnam

Published on January 15, 2026

Vietnamese entrepreneurs and businesses frequently engage with US companies for services, software, and goods, driving innovation and growth. However, making international payments from Vietnam to the United States presents unique challenges, primarily due to strict foreign exchange controls, the absence of a US-Vietnam tax treaty leading to significant withholding tax, and restrictions on USD accounts. This guide aims to demystify the process, offering practical insights for compliant and efficient cross-border transactions.

The regulatory environment

Payments from Vietnam to US companies are governed by the stringent regulations of the State Bank of Vietnam (SBV), which maintains tight control over foreign exchange (forex) transactions. The SBV's primary objective is to stabilize the Vietnamese Dong (VND) and manage the country's foreign currency reserves, leading to a highly regulated environment for outbound payments.

Businesses in Vietnam must adhere to strict documentation requirements for all outbound business payments. This typically involves providing detailed contracts, invoices, and proof of service or goods delivery to authorized banks before any foreign currency transfer can be processed. The process is designed to prevent capital flight and ensure that foreign currency outflows are legitimate and economically justified. Furthermore, USD accounts within Vietnam are subject to restrictions, often requiring specific approvals or operating within defined limits, which can complicate direct transfers in US dollars.

These regulations necessitate a thorough understanding and meticulous preparation from Vietnamese businesses. Any deviation from the prescribed procedures can lead to delays, penalties, or even the rejection of payment requests. Therefore, engaging with financial institutions that are well-versed in SBV's forex policies is crucial for smooth international transactions.

Tax treaty status

Currently, there is no comprehensive income tax treaty between the United States and Vietnam. This absence significantly impacts cross-border payments, particularly concerning withholding tax (WHT) on service fees. In the absence of a treaty, the default US statutory withholding tax rate applies to certain types of income sourced from the US, and similarly, US companies receiving payments from Vietnam may face Vietnamese WHT.

For Vietnamese entities paying US companies for services, the lack of a tax treaty means that the standard US withholding tax rules do not provide for reduced rates based on treaty provisions. Conversely, the Vietnamese tax authorities will apply their domestic withholding tax regulations to payments made to foreign entities, including those in the US. This often results in a 30% withholding tax rate being applied to various types of income, such as service fees, royalties, and interest, when paid from Vietnam to a US recipient.

Withholding tax on service fees

Given the absence of a US-Vietnam tax treaty, a 30% withholding tax (WHT) typically applies to service fees paid from Vietnam to a US company. This means that the Vietnamese payer is legally obligated to withhold 30% of the gross payment and remit it to the Vietnamese tax authorities before transferring the remaining 70% to the US recipient. The US company, as the recipient, cannot claim treaty benefits to reduce this rate because no such treaty exists.

For the US company, the 30% WHT is a direct reduction in their received income. While US companies can typically claim a foreign tax credit on their US tax return for taxes withheld by foreign governments, this process can be complex and may not fully offset the impact of the 30% WHT. The W-8BEN-E form, which is used by foreign entities to claim treaty benefits or exemptions from US withholding tax, is not applicable in this context for reducing Vietnamese WHT, as it pertains to US tax obligations, not Vietnamese ones. If the Vietnamese payer fails to correctly withhold and remit the tax, they may face penalties from the Vietnamese tax authorities, and the US recipient might still be subject to the tax liability.

Recommended payment methods

Navigating international payments from Vietnam requires selecting methods that balance compliance with efficiency. Here are some recommended options:

• SWIFT Wire Transfers: This remains the most common and widely accepted method for international business payments. All major Vietnamese banks offer SWIFT services, but be prepared for rigorous documentation requirements and potential delays due to SBV's forex controls. Fees can be higher, but it offers reliability and traceability.
• Wise (formerly TransferWise): Wise offers competitive exchange rates and lower fees compared to traditional banks. It operates by facilitating local transfers in both countries, bypassing some of the complexities of direct international wire transfers. However, its suitability for large business payments from Vietnam might still be subject to local banking regulations and documentation requirements.
• Payoneer: Similar to Wise, Payoneer provides a platform for cross-border payments, often favored by freelancers and small businesses. It can be a viable option for receiving payments in the US, but the initial transfer from Vietnam will still need to comply with SBV's regulations, likely through a local bank transfer to Payoneer's local partner or a direct bank transfer from Vietnam.
• Country-Specific Rails/Local Bank Transfers: While less common for direct US payments, some Vietnamese banks may have correspondent banking relationships or specialized services that could streamline certain types of transfers. Always consult with your bank for the most up-to-date and efficient options tailored to your specific business needs.

For a detailed comparison, see our full Payoneer vs Wise comparison.

Step-by-step: making your first payment

Making an international payment from Vietnam to a US company involves several critical steps to ensure compliance and efficiency:

1. Verify Documentation: Gather all necessary documents, including the service contract, commercial invoice, and any other supporting evidence required by your Vietnamese bank and the SBV. Ensure all details, especially payment terms and recipient information, are accurate.
2. Consult Your Bank: Engage with your Vietnamese bank early in the process. Discuss the nature of the payment, the amount, and the recipient. They will advise on specific forms, procedures, and any additional documentation required under current SBV regulations.
3. Prepare for Forex Controls: Be aware that the SBV strictly governs foreign exchange. Your bank will scrutinize the transaction to ensure it complies with forex policies. This may involve providing justification for the foreign currency outflow.
4. Withholding Tax Calculation: Your Vietnamese bank will typically assist in calculating and withholding the 30% tax on service fees, as there is no US-Vietnam tax treaty. Ensure this is correctly accounted for before the transfer.
5. Initiate Transfer: Once all documentation is approved and WHT is processed, initiate the SWIFT wire transfer through your bank. Provide the US company's bank details, including SWIFT/BIC code, account number, and bank address.
6. Track Payment: Request a SWIFT confirmation (MT103) from your bank to track the payment. Communicate this reference to the US recipient so they can also monitor the incoming funds.
7. Record Keeping: Maintain meticulous records of all transactions, approvals, and tax remittances for future audits or inquiries from Vietnamese tax authorities.

Common mistakes to avoid

Making international payments from Vietnam can be fraught with pitfalls if not handled carefully. Avoiding these common mistakes can save time, money, and potential legal issues:

• Underestimating Documentation Requirements: Failing to provide comprehensive and accurate documentation to the Vietnamese bank is a primary cause of delays and rejected payments. The SBV's strict forex controls demand meticulous paperwork.
• Ignoring Withholding Tax Obligations: Overlooking the 30% WHT on service fees due to the absence of a tax treaty can lead to penalties for the Vietnamese payer and complications for the US recipient. Always factor this into your payment calculations.
• Attempting to Bypass Official Channels: Trying to use informal or unregulated channels to transfer funds internationally can result in severe legal consequences, including fines and imprisonment, under Vietnam's strict financial laws.
• Lack of Communication with US Recipient: Not informing the US company about potential WHT deductions or expected delays due to Vietnamese regulations can lead to misunderstandings and strained business relationships.

How Keystone Bridge helps

Keystone Bridge offers a transformative solution for Vietnamese businesses looking to streamline payments to US companies, effectively bypassing the complexities of foreign exchange controls and withholding tax. Our full-stack US entity setup provides Vietnamese entrepreneurs with their own legitimate US presence, including an Employer Identification Number (EIN), a real US business address, and access to US credit facilities.

By establishing a US entity through Keystone Bridge, the entire payment dynamic shifts. Payments from Vietnam to your US entity are treated as internal transfers to your own US company, rather than international payments to a third-party US vendor. This crucial distinction means that the stringent SBV foreign exchange controls and the 30% withholding tax on service fees, which typically apply to payments to external US companies, are significantly mitigated or entirely bypassed. Your US entity can then manage its finances domestically, making payments to other US companies as simple, fast, and cost-effective as any local US transaction. This approach not only reduces operational friction and costs but also enhances your credibility and access to the vast US market.

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For the broader picture on this topic, see our guide on how to pay a US company from your country.

For the broader picture on this topic, see the Vietnam banking guide.

See also

• Best Payment Processors for Non-Residents — Full Comparison For more context, see the Myanmar payment guide.