Procedures to register foreign loans of enterprises in Vietnam

Hi DMS Lawyes in Da Nang, Vietnam!  Does a foreign loan by company established in Vietnam subject to registration with the State Bank of Vietnam ?  

Hi!

Foreign loans borrowed by enterprises established in Vietnam subject to registration with the State Bank of Vietnam (SBV), include:

Medium and long term foreign loans, short term loans extended with the total term of the loan is more than 1 year; short term loans without agreements for extension but still having loan principal balance on the first anniversary of the initial disbursement of the loan, except for cases when the borrower has fulfilled the repayment within the 10 (ten) days from the first anniversary date (Article 9 Circular No. 24/VBHN-NHNN dated April 29, 2016).

Sequence and procedures for registration of foreign loans:

Preparation of Registration form for the foreign loan that is not guaranteed by the Government:

- If the borrower choose to submit online: The borrower shall declare the Registration form for foreign loan that is not guaranteed by the Government on the website to receive the loan code, print the Registration form, sign and stamp;

- If the borrowe choose to submit traditionally: The borrower shall fulfill the Registration form prescribed in the Appendix 1 of this Circular.

Submit the Registration form:

- The borrower shall submit the Registration form as stipulated in this Circular in person or by post to the authority specified at Article 18 of this Circular;

- The borrower that choose to submit online may submit an extra Registration form thru the online platform, in accordance with the website’s guidelines. 

Time to submit: The borrower shall submit the registration form within 30 days from:

- The date of signing agreement on medium, long term foreign loan or the date of signing a guarantee letter for the loan or the date of signing the agreement for capital withdrawal (loan disbursement) based on the framework agreement signed and prior to the actual capital withdrawal;

- The date of signing the agreement on extension of the short term foreign loan to become the medium or long term loan by the mode of self-borrowing and self-payment stipulated at Clause 2 Article 9 of this Circular;

- The first anniversary of the initial disbursement of the loan by the mode of self-borrowing and self-payment stipulated at Clause 3 Article 9 of this Circular.

The State Bank of Vietnam (SBV) must provide written certification or refusal of foreign loan registration within:

- 12 working days from the date of receipt of the Borrower’s sufficient, eligible application if the borrower submits application through online platform;

- 15 working days from the date of receipt of the Borrower’s sufficient, eligible application if the borrower submits application traditionally; or

- 45 working days from the date of receipt of the Borrower’s sufficient, eligible application in case of loan denominated in Vietnam Dong that must be considered, approved by the SBV Governor in accordance with the current law regarding to Conditions for borrowing of foreign loans of enterprises that are not guaranteed by the Government;

- In case the Registration request is refused, the State bank of Vietnam shall respond and explain its reason (Clauses 1, 2, 3 and 4 Article 13 Circular No. 24/VBHN-NHNN dated April 29, 2016).

Therefore, according to law, Vietnamese enterprises must register with the State Bank of Vietnam on foreign loans./.

Consulting services:

Phone: 0914 165 703 or Email: dmslawfỉm@gmail.com

Procedures to register foreign loans of enterprises in Vietnam