Vietnam: Supplementing demands for foreign currency loans

According to Vietnam’s new regulations, from January 01, 2019, demands for foreign currency loans include:

- Short-term loans used as overseas payment for imported goods or services and for borrowers to manufacture and trade goods, provided the foreign currency derived from the turnover is sufficient to repay such loans. This regulation shall be effective until the end of March 31, 2019.

- Short-term loans used as overseas payment for imported goods and services and for borrowers to manufacture and trade goods which are exported through Vietnam's border checkpoints, provided the foreign currency derived from the turnover is sufficient to repay such loans.

- Mid-term and long-term loans are used as overseas payment for imported goods and services, provided the borrowers’ foreign currency from the business operation is sufficient to repay such loans. This regulation shall be effective until the end of September 30, 2019.

- Short-term loans granted to major petroleum importers who are given annual quotas on petroleum import by the Ministry of Industry and Trade.

- Short-term loans granted to domestic borrowers to manufacture and trade goods which are exported through Vietnam’s border checkpoints, provided their foreign currency derived from the turnover is sufficient to repay such loans.

- Loans used as direct overseas investments in projects which are subject to investment decisions made by the National Assembly or the Prime Minister and have been granted the Overseas Investment Certificate by the Ministry of Planning and Investment.

View more details at Circular No. 42/2018/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2019.

- Thanh Lam -

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