Foreign borrowing is an activity strictly controlled by the State Bank of Vietnam (SBV). Except for short-term foreign loans with a loan term of less than 1 year, the company, as a borrower, needs to register the foreign loan with SBV before transferring money into Vietnam. Without pre-registration, banks will not disburse loans to the borrower.
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The following article provides some useful information related to legal regulations on foreign loan management for your reference.
# Loans subjected to register with SBV include:
- Medium and long-term foreign loans.
- Short-term loan is extended for the total term of the loan is more than one year.
- The short-term loan has no contract extension, but has an outstanding principal balance at a full year from the first drawdown date, except where the borrower completes the loan repayment within 10 days from the full year date from the first withdrawal date.
# Checklist of the foreign loan registration dossier
- Application form
- Copy (certified by the borrower) of the legal documents of the borrower and the borrower in case the borrower is not a loan user, including Enterprise Registration Certificate, Investment Registration Certificate, and its amended and supplemented documents (if any);
- A copy (certified by the borrower) or an original of the document proving the borrowing purpose;
- Copy and Vietnamese translation (certified by the borrower) of the foreign loan agreement and the agreement on extending the short-term loyal and long-term loan (if any); or the withdrawal document with the framework agreement.
- Copy and Vietnamese translation (certified by the borrower) of the written guarantee commitment (letter of guarantee, contract of guarantee, or another form of guarantee commitment) in case the loan is guaranteed.
- Bank confirmation in the following cases:
+ In case of a foreign loan to restructure a foreign debt: The borrower's bank document on the withdrawal and repayment of the foreign loan will be restructured from the source of the foreign loan;
+ In case the capital transferred by foreign investors into Vietnam has been spent for pre-investment expenses, then be converted into medium and long-term foreign loans of FDI enterprises: Document of the Lender's bank certifying receipt and expenditure transactions relating to the formation of the Loan;
+ In case of a short-term loan subject to registration: The bank's document on the capital withdrawal and repayment of the initial short-term foreign loan
# Competent Authority
- The State Bank (Foreign Exchange Management Department) confirms the registration and registration of changes for loans over USD 10 million (or other foreign currencies with equivalent value).
- The State Bank Branch in the city where the borrower's head office is located shall confirm the new registration and registration of changes for loans up to USD 10 million (or other foreign currencies with equivalent value).
# Registration Method
- Online Registration: Access to the website https://www.qlnh-sbv.cic.org.vn/qlnh/
- Offline Registration: Submit the application directly to the competent authority
# Registration Deadline and Approval Timeline
The borrower must submit the registration dossier within 30 days from:
- The date of signing the medium, long-term foreign loan agreement or the date of signing the guarantee document in case the loan is guaranteed or the date of signing the written capital withdrawal agreement in case the parties agree to withdraw capital on the basis of the signed framework agreement and prior to withdrawal;
- The date of signing the agreement to renew the short-term, loyal, long-term foreign loan;
- The full date of one year from the date of first withdrawal of short-term loan.
The State Bank shall grant approval or refuse to confirm loan registration within:
- 12 working days from the date of receipt of a complete and valid application file from the borrower in case of the online registration;
- 15 working days from the date of receipt of a complete and valid application file from the borrower in case of offline registration.