Publications

Foreign Loans For Vietnamese Borrowers – Q&A

October 31, 2024

In this briefing the team of Andersen in Vietnam answers to the most frequently raised questions relating to the provision of foreign loans to companies in Vietnam.

Topics

1. What is the key specifics of foreign loans regulation in Vietnam
2. What are the requirements applicable to a Vietnamese company to make it capable of receiving a loan from abroad?
3. Which permits are required to receive / repay the loan and pay interest?
4. Is it necessary to obtain SBV registration if the terms of the loan are subsequently changed?
5. Are there any limitations on the interest rate?
6. Would any withholding tax apply on interest payments?
7. Are there any stamping, notarization or similar duties applicable upon signing loan agreement?
8. Is there a specific procedure for making loan-related / security related payments?
9. Are there any cases when payments do not have to be routed through specifically designated accounts
10. Which banks need to be involved in loan-related / security-related monitory transfers?
11. Can Borrower receive loan via a facility/payment agent and not directly from relevant lender (if this is a syndicated or a club loan transaction)? Would repayments be possible in such way too?
12. What types of security can be offered by a Vietnamese borrower and are there any restrictions applicable to security for loans for foreign lenders?
13. Can we take security over “any and all assets” of the debtor, like a floating charge?
14. What are the major perfection requirements for security and how difficult is the process?
15. Can guarantees be provided by a Vietnamese company to secure a loan obtained by a Vietnamese borrower?
16. Highlights of the recently enacted Circular 19

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