Posted 17.12. 2019 by Cekindo
Along with the upswing of Vietnam’s economy, when doing business in Vietnam, businesses have higher demand of capital in order to grow and expand. As foreign investors do not meet the requirements of most domestic capital, they require foreign loan for that matter.
On September 15, 2014, the State Bank of Vietnam (SBV) issued Circular 25/2014 in regards to the guideline for foreign loan registration. All foreign loans must register with the SBV. Though there is a procedure from SBV, the government still needs to expand foreign loan regulations to support foreign enterprises further.
You will read more information on how you can register foreign loans in Vietnam when doing business in Vietnam in this detailed guide.
There are several types of foreign loans in Vietnam:
Foreign Loans Guaranteed by the Vietnamese government
Foreign Loans not Guaranteed by the Vietnamese government
Foreign loans that are subject to registration to SBV include the following:
Changes or modification of foreign loans must be registered with the SBV by the borrower as well. However, borrowers are only required to write in and notify the SBV for certain changes:
Three generic steps of foreign loan registration are document preparation, application and document submission, and application outcome.
The results of the loan application may be affected and foreigners may need to face certain penalties if the registration is delayed. To avoid negative outcome and unnecessary penalties, borrowers must submit required documents within 30 days. The start date of the 30 days vary and in accordance with the type of foreign loans.
Ways to Register
There are two ways you can use to register:
Required Documents for Registration
Borrowers will be informed by the SBV if their registration is successfully or not within the following periods, upon the receipt of complete and valid documents:
With the rise of capital demand and stringent and complex laws in foreign loans in Vietnam, an independent third-party agent can add real value to your foreign loan registration and compliance in Vietnam.
Cekindo has had vast experience throughout the years in the Vietnamese market, allowing us to provide specialised and first-class services for all enterprises in Vietnam. Get in touch with us today by filling in the form below.