When the loan is extended the loan term, the borrower carries out the procedure to register for loan changes. The procedure is performed as follows:
Dossier for extending foreign loans in Vietnam
- Application form for loan change.
- A copy and Vietnamese translation about signed loan change agreements (certified by the borrower).
- A copy (certified by the borrower) about the guarantor’s approval of the loan change content in case the borrower’s loan is guaranteed.
- A copy (certified by the borrower) of a competent authority’s written in accordance with the law on assignment, decentralization to perform the rights, responsibilities and obligations of the state owner towards the state-owned enterprise and state capital invested in the enterprise on the approval of the change of the foreign loan plan of the borrower being the state-owned enterprise in case of the change in the increase in loan turnover or the extension of the loan term.
- In case of change in the increase in loan turnover, a copy (certified by the borrower) or the original written proving the loan purpose is required.
Dossier for the extending of foreign loans with the medium and long-term
- Production, business plans, investment projects using foreign loans shall be approved by competent authorities in accordance with the provisions of the Law on Investment, the Law on Enterprise and the enterprise’s charter, the Law on Cooperatives and the Charter of Cooperatives and other relevant legal documents for loans for the implementation of production plans, business, investment projects, except for cases where the investment project has been granted an investment certificate by a competent agency defining clearly the scale of investment capital;
- The plan for restructuring the foreign debts of the borrower shall be approved by competent authorities in accordance with the provisions of the Law on Enterprise and the enterprise’s charter, the Law on Cooperatives and the Charter of Cooperatives and other relevant legal documents for the loan to restructure the foreign debts of the borrower;
- A written confirmation of bank providing account services on the situation of capital withdrawal and debt repayment (principal and interest) up to the period of registration for loan change in case of registration for change in loan turnover, capital withdrawal plan, debt repayment plan or a commercial bank providing account services.
Dossier for the extension of foreign short-term loans (which is extended or have outstanding principal over 1 year)
- Report on the use of the initial short-term foreign loan to satisfy regulations on the short-term foreign loan condition (enclosed with proving documents) and the debt repayment plan for foreign loans to request the State Bank to confirm registration.
- A written confirmation of bank providing account services about the situation of capital withdrawal and debt repayment (principal and interest) up to the period of registration for loan change in case of registration for change of loan turnover, capital withdrawal plan, debt repayment plan or a commercial bank providing account services.
The process of the extension of the foreign loan
Step 1: Prepare the dossier
Step 2: Send the dossier to the State Bank of Vietnam
Within 30 (thirty) days from the date of signing the change agreement or before the time when the changed content (in case the changed content does not need to sign the change agreement but still ensures compliance with foreign loan agreement), the borrower sends the registration dossier for loan change by post or directly at the State Bank.
Step 3: The State Bank reply on the confirmation or refusal written
After appraising the dossier, the State Bank confirms the registration for loan change within the specified term or refuses, stating clearly the reason.
Frequently asked questions related extending foreign loans in Vietnam
Cases in which to register for loan changes?
If there are any changes to the loan-related content, it is stated in the written confirmation of foreign loan registration of the State Bank. Borrowers are responsible for registering changes to foreign loans in accordance with regulations, except for the following cases:
- In case the plan for capital withdrawal, debt payment and transfer the actual fee to change within 10 (ten) days compared with the plan for capital withdrawal, debt repayment and transfer fees is previously confirmed by the State Bank. The borrower is responsible for notifying in written for bank providing account services to withdraw capital and repay debt according to the changed plan. It is not required to register loan changes with the State Bank.
- In case of change of contents: change of the borrower’s address in the province or city where the borrower’s head office is located. Changing of Lender, relevant information about the lender in the syndicated loan with the appointment of representatives of the lenders (except for case if the lender is also the representative of lenders in the syndicated loan. The change of the lender changes the role of representatives of the lenders). Changing the commercial transaction name of bank providing account services. The borrower only makes a written notice to the State Bank, does not register for loan changes.
How long does it take to perform the procedure a foreign loan extension ?
- 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);
- 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 form);
What is the competent authority to receive and handle dossier?
- The State Bank of Vietnam (Foreign Exchange Management Department): for loans with a loan turnover of over 10 (ten) million USD (or other foreign currencies of equivalent value) and foreign loans in VND Vietnam.
- State Bank branches in provinces and centrally run cities: for loans with a loan turnover of up to 10 (ten) million USD (or other foreign currencies of equivalent value).
Service for extending foreign loans in Vietnam of Viet An Law
- Consulting on customers about conditions, dossiers, procedures for granting/adjusting/terminating the validity of the registration confirmation written, registration for loan changes;
- Drafting legal dossiers for enterprises related to the content of granting/adjusting/terminating the validity of the registration confirming written, registration for loan changes;
- Authorized representative of the customer to carry out the procedures for granting/adjusting/terminating the validity of the registration confirmation written, registration for loan changes;
- Carry out procedures related to registration/notification of changes in foreign exchange transactions related to offshore investment activities;
- Monitor the processing of acceptance dossiers of competent state agencies, explain to state agencies on issues related to dossiers for granting/adjusting/terminating the validity of the registration confirmation written, registration for loan changes.
