According to Article 17 of the ordinance on foreign exchange control regarding Borrowing and repayment of foreign loans by residents:

1. “Residents being enterprises, cooperatives, cooperatives unions, credit institutions and foreign banks’ branches shall be permitted to borrow and repay foreign loans on the principle of self-borrowing and self-repayment in accordance with law.
2. Residents being individuals shall be permitted to borrow and repay foreign loans on the principle of self-borrowing and self-repayment in accordance with regulations of the Government.
3. When borrowing and repaying foreign loans, residents must comply with the conditions on borrowing and repayment of foreign loans, shall register the loans, shall open and use accounts, shall withdraw capital and transfer money for loan repayment and shall report the use status of loans in accordance with regulations of the State Bank of Vietnam.  The State Bank of Vietnam shall certify the registration of loans within the total commercial loan limit annually approved by the Prime Minister of the Government.
4. Residents shall be entitled to purchase foreign currency at authorized credit institutions on the basis of presentation of proper documents for repayment of principal, interest and fees relating to the foreign loans.
5. Other lawful transactions of capital transfer relating to activities of borrowing and repaying foreign loans shall comply with regulations of the State bank of Vietnam and relevant laws.”

When borrowing the foreign loads, residents need to meet the conditions on borrowing and repayment of foreign loans, shall register the loans, shall open and use accounts, shall withdraw capital and transfer money for loan repayment and shall report the use status of loans in accordance with regulations of the State Bank of Vietnam. In the scope of this article, we would like to provide clients the procedures for registration of the foreign loans as follow:

The order of execution:

Step 1: The borrower sends the application to the loan registration confirmation agency within 30 (thirty) days from:

• The date of signing the medium- and long-term foreign loan agreement or the date of signing the guarantee document in the case of a guaranteed loan or the date of signing the written capital withdrawal agreement in case the parties agree on capital withdrawal on the basis of an agreement. framework agreement signed and before capital withdrawal;
• The date of signing the agreement to extend the short-term foreign loan into a medium or long-term for the extended short-term self-borrowing loan whose total term is over 01 (one) year.
• The day is 01 (one) year from the date of first capital withdrawal for a short-term loan without an extension contract but with outstanding principal balance at the time of full 01 (one) year from the date of first capital withdrawal, except for the following cases: in case the Borrower completes loan repayment within 10 (ten) days from the date of full 01 (one) year from the date of first capital withdrawal.

Borrowers who choose to apply online can choose to submit additional documents online according to the instructions on the Website.

Step 2: The competent authority has a written confirmation or refusal to confirm the loan registration within the time limit:

• 12 (twelve) working days from the date of receipt of the complete and valid dossier of the Borrower (in case the Borrower chooses the online form), or;
• 15 (fifteen) working days from the date of receipt of the complete and valid dossier of the Borrower (in case the Borrower chooses the traditional method);
• 45 (forty five) working days from the date of receipt of the complete and valid dossier of the Borrower in the case of a loan in Vietnam dong, which must be reviewed and approved by the Governor of the State Bank in accordance with regulations of the State Bank of Vietnam. current legislation on conditions for foreign loans of enterprises that are not guaranteed by the Government;

In case of refusal to confirm loan registration, the competent authority shall issue a written explanation clearly stating the reasons therefor

Implementing agency: State Bank of Vietnam, State Bank branches in provinces and cities under (the jurisdiction of) the central government. 

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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Best regards!