Tiếng Việt
Foreign loan registration is no longer a strange procedure for both businesses and investors. During the course of project operation/implementation, the Enterprise/Investor may incur additional costs in excess of the contributed capital amount. At this time, businesses can choose to borrow from abroad to have more capital to implement investment projects. However, foreign loans are also strictly controlled by the State Bank. Vo Consultants will provide detailed instructions on the procedure for applying for a foreign loan in this article.
Legal basis
Law on Credit Institutions 2010 (as amended and supplemented in 2017).
Decree No. 219/2013/ND-CP, on management of enterprises’ borrowing of foreign loans and payment of foreign debts without Government guarantee.
Circular 12/2014/TT-NHNN stipulating conditions for foreign loans of enterprises not guaranteed by the Government.
Circular 03/2016/TT-NHNN by the Governor of the State Bank of Vietnam providing certain guidelines on foreign exchange control in relation to foreign borrowing activities.
Circular No. 05/2017/TT-NHNN of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises.
Which loans must register for foreign loans with the State Bank of Vietnam?
According to the content of the article, there will be two types of loans, namely short-term loans (under 01 year) and medium and long-term loans (loan term of more than 01 year). In that case, only medium and long-term loans need to carry out registration procedures for foreign loans.
Specifically, in the medium and long-term loans that need to be registered, including:
Foreign medium and long-term loans.
Extended short-term loan with a total term of more than one year.
Short-term loans with no renewal contract but an outstanding principal balance after 01 year from the date of first capital withdrawal, unless the borrower completes loan repayment within 10 days of loan withdrawal after 01 year from the date of the initial capital withdrawal.
Documents to be prepared to apply for a foreign loan:
Law on Credit Institutions 2010 (as amended and supplemented in 2017).
Decree No. 219/2013/ND-CP, on management of enterprises’ borrowing of foreign loans and payment of foreign debts without Government guarantee.
Circular 12/2014/TT-NHNN stipulating conditions for foreign loans of enterprises not guaranteed by the Government.
Circular 03/2016/TT-NHNN by the Governor of the State Bank of Vietnam providing certain guidelines on foreign exchange control in relation to foreign borrowing activities.
Circular No. 05/2017/TT-NHNN of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises.
Law on Credit Institutions 2010 (as amended and supplemented in 2017).
Decree No. 219/2013/ND-CP, on management of enterprises’ borrowing of foreign loans and payment of foreign debts without Government guarantee.
Circular 12/2014/TT-NHNN stipulating conditions for foreign loans of enterprises not guaranteed by the Government.
Circular 03/2016/TT-NHNN by the Governor of the State Bank of Vietnam providing certain guidelines on foreign exchange control in relation to foreign borrowing activities.
Circular No. 05/2017/TT-NHNN of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises.
Deadline for loan application submission:
According to the content of the article, there will be two types of loans, namely short-term loans (under 01 year) and medium and long-term loans (loan term of more than 01 year). In that case, only medium and long-term loans need to carry out registration procedures for foreign loans.
Specifically, in the medium and long-term loans that need to be registered, including:
Foreign medium and long-term loans.
Extended short-term loan with a total term of more than one year.
Short-term loans with no renewal contract but an outstanding principal balance after 01 year from the date of first capital withdrawal, unless the borrower completes loan repayment within 10 days of loan withdrawal after 01 year from the date of the initial capital withdrawal.
