Can foreign currency loans be paid in Vietnam Dong? Where can buy foreign currency to pay foreign currency loans in Vietnam?

Can foreign currency loans be paid in Vietnam Dong? 

Pursuant to Clause 2, Article 1 of Circular 42/2018/TT-NHNN stipulating currency used for loan repayment as follows:

1. As for the foreign currency loans which borrower have sufficient foreign currency revenues to repay before signing the credit contract or the loan agreement:

a. Borrowers shall pay the loan principal and interest in the currency that they borrow; in case where borrowers repay debts by using another foreign currency, they shall be bound to the agreement between the credit institutions, foreign branch banks and borrowers in conformity with relevant laws.

b. On the due date of the loan, if the borrower is able to prove that their late repayment in foreign currency is caused by unexpected events, such as the borrower's deferred collection of operating revenues or the borrower does not have sufficient foreign currency to repay the loan, the borrower may buy the foreign currency from the lender or from another credit institution or FBB to repay such loan.

If the borrower needs to buy the foreign currency from the lender, the lender must sell the foreign currency to the borrower.   If the borrower buys the foreign currency from another credit institution or FBB, the requested credit institution or FBB shall transfer the foreign currency to the lender.

If the borrower earns foreign currency from their business operation, they shall resell such foreign currency back to the lender.

Thus, according to current regulations in Vietnam, when borrowing in any foreign currency, payment must be made in that foreign currency, unless otherwise agreed by the parties. Therefore, if you do not have another agreement with the credit institution where you are registered, it is not possible to pay in Vietnam Dong.

Where can buy foreign currency to pay foreign currency loans in Vietnam?

Pursuant to Clause 2, Article 1 of Circular 42/2018/TT-NHNN also stipulates currency used for loan repayment as follows:

2. As for the foreign currency loans which borrower does not have sufficient foreign currency revenues to repay before signing the credit contract or the loan agreement: the borrower may buy the foreign currency from the lender of from another credit institution or FBB to repay such loans.

If the borrower wishes to buy foreign currency from the lender, the lender shall sell the foreign currency to the aforesaid borrower.  If the borrower buys the foreign currency from another credit institution or FBB, the requested credit institution or FBB shall transfer the foreign currency to the lender.

According to this Article, borrowers can buy foreign currency to repay loans. The purchase of this foreign currency can be purchased at credit institutions, FBB to repay such loans or at other credit institutions, FBB in Vietnam.

Best Regards!