Truong Van Phuoc, head of SBV's Foreign Currency Management Department, said such payments like health treatment fees and school fees would be allowed under a revised government decree issued on Oct 18.

Local residents can also buy foreign currencies at commercial banks for such purposes if they can supply the relevant payment documents.

For foreign currency transactions carried out within Viet Nam, no such documents will be required.

The decree also allows foreigners residing long-term or temporarily in Viet Nam to open foreign currency accounts at Vietnamese banks.

They will also be permitted to carry out foreign currency transactions within the country.

Foreigners can also exchange their Viet Nam dong for other foreign currencies at Viet Nam's banks and transmit the money overseas, according to the decree.