Who is entitled to a direct loan from the National Technological Innovation Foundation in Vietnam? What are the documentation requirements and procedures for a direct loan?
- What are the documentation requirements and procedures for a direct loan from the National Technology Innovation Foundation in Vietnam?
- Who is entitled to a direct loan from the National Technological Innovation Foundation in Vietnam?
- What is the loan amount and lending interest rate when borrowing directly from the National Technological Innovation Foundation in Vietnam?
What are the documentation requirements and procedures for a direct loan from the National Technology Innovation Foundation in Vietnam?
Pursuant to Article 16 the Charter for organization and operation of the National Technology Innovation Foundation, issued together with Decision No. 04/2021/QD-TTg, stipulating documentation requirements and procedures for a direct loan from the National Technology Innovation Foundation as follows:
- Loan application must include the followings:
+ Loan application form;
+ Project documentation and documents or records proving that the loan applicant qualifies for a loan.
- Enterprises submit the application package for loans at the Foundation’s main office or on its website (if any).
- The Foundation receives and reviews the completeness of loan application documents; establishes the Review Council to consider whether a direct loan approval decision is issued. Where necessary, the Foundation hires an independent consultant or establishes the Science and Technology Council advising the Foundation on loan applications.
- In case of refusal to grant a loan, the Foundation shall inform the applicant enterprise of clear reasons for such refusal.
- The Foundation shall be responsible for adopting regulations on nomination, selection, review and assessment procedures, processing duration, and making its decision on whether a loan application is approved, and making disbursement according to the principles of clear distinction of responsibilities and obligations of individuals or organizations involved in the process of reviewing and deciding loans and disbursing borrowed funds.
- The loan agreement between the Foundation and the borrowing enterprise must be made in writing, must comply with the provisions laid down herein, and must contain the following main information:
+ Information about the legal personalities of the Foundation and the borrowing enterprise, the place and time of entry into such agreement;
+ Terms and conditions of loan amount, purposes, term, currency unit, lending approach, loan disbursement method, lending interest rate, loan transition, interest recovery, loan principal, loan security and risk provision and management (if any), validity of the loan agreement;
+ Rights, duties and liabilities of each party involved in the indirect lending process; method for resolving disputes or difficulties arising from the process of implementation of the agreement and other arrangements in conformity with the Foundation’s managerial requirements;
+ In addition to those prescribed as above, contracting parties may reach other agreements in compliance with the provisions laid down herein and other relevant laws.
Who is entitled to a direct loan from the National Technological Innovation Foundation in Vietnam? What are the documentation requirements and procedures for a direct loan?
Who is entitled to a direct loan from the National Technological Innovation Foundation in Vietnam?
Pursuant to Article 14 the Charter for organization and operation of the National Technology Innovation Foundation issued together with Decision No. 04/2021/QD-TTg stipulating the qualified borrowers and requirements as follows:
- Qualified borrowers:
Enterprises executing the following projects:
+ Transfer, innovation and improvement of technologies receiving transfer incentives as provided in the Law on Technology Transfer;
+ Technology transfer, new product development and product commercialization in the high-technology agriculture and industry sectors approved by the Prime Minister;
+ Technological innovation, production of industrial products on the list of supporting industrial products prioritized for development approved by the Prime Minister;
+ Implementation of technology transfer contracts signed at technology exchanges, technology and equipment markets, technology supply-demand connection events and national startup festivals;
+ Innovation and improvement of technologies, development of new products, production expansion for innovative startups and science and technology enterprises in accordance with the laws on science and technology;
+ Technology innovation activities for enterprises that win the National Quality Award, enterprises participating in the Production and Quality Improvement Program;
+ Receipt, transfer, innovation and improvement of technologies and especially commercialization of technologies after being developed in the National Product Program, the National Technology Innovation Program, the National Program for High Technology Development and other national-level science and technology programs.
- Requirements:
+ Loan applicants must be classified as qualified borrowers;
+ Having the project of which objectives, contents and products meet the Foundation's operating purposes;
+ The project must be approved by the competent authority in accordance with laws, verified and evaluated by the Foundation as a feasible project capable of repaying the loan;
+ The enterprise applying for a loan is established in accordance with laws, has sufficient resources to implement projects and ensures that the equity participation makes up at least 20% of total investment capital in order for its project to be executed;
+ Having financial capability to repay debts and meeting regulations on loan security under the provisions of this Decision and relevant laws;
+ At the time of application for a loan, the enterprise has no bad debts to credit institutions and outstanding tax liabilities for a period of 1 year or more in accordance with the Law on Tax Administration. In case of outstanding tax debts incurred due to objective reasons, the enterprise must obtain certification of this situation from the directly supervisory tax authority;
+ The currency unit used for lending and debt repayment transactions must be Vietnamese dong.
What is the loan amount and lending interest rate when borrowing directly from the National Technological Innovation Foundation in Vietnam?
Pursuant to Clauses 1 and 2, Article 15 the Charter for organization and operation of the National Technology Innovation Foundation, issued together with Decision No. 04/2021/QD-TTg, stipulating the loan amount and lending interest rate when borrowing directly from the National Technological Innovation Foundation as follows:
- The Foundation's direct lending interest rate varying over periods of time shall be determined according to the principle of ensuring that the Foundation has sufficient revenues to exercise its financial autonomy, assuring capital prudence and development. Over periods of time, according to the principles of determining interest rates specified in this Clause, the President of the Foundation’s Executive Board shall announce the Foundation's lending interest rates.
- The maximum direct loan amount for each project shall not exceed 80% of total project investment. The Foundation's total loan amount that an enterprise may take out must not exceed 15% of the Foundation's actual charter capital.
Thus, the interest rate will be fixed from time to time. And the maximum direct loan amount for each project shall not exceed 80% of total project investment.
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