| THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 151/2006/ND-CP | Hanoi, December 20, 2006 |
DECREE
ON THE STATE'S INVESTMENT CREDIT AND EXPORT CREDIT
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 16, 2002 State Budget Law;
Pursuant to the November 29, 2005 Investment Law;
Pursuant to the February 12, 1997 Law on Credit Institutions and the May 16, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Governing scope and subjects
1. Governing scope of the Decree:
a/ Investment credit, including investment loans, investment credit guarantees and post-investment supports;
b/ Export credit, including export loans (for exporters and importers), export credit guarantees, bid-participation guarantees and contract-performance guarantees.
2. Governing subjects:
a/ Enterprises and economic organizations which have projects entitled to investment loans, investment credit guarantees or post-investment supports (hereinafter called investors);
b/ Domestic enterprises and economic organizations having export contracts or foreign organizations importing goods which are entitled to borrow capital and enjoy export credit guarantees;
c/ The Vietnam Development Bank and other organizations and individuals involved in the process of materializing the State's investment credit and export credit.
Article 2.- Investment and export credit principles
1. Loans and guarantees shall be provided to investment projects and contracts on the import or export of goods made in Vietnam with the direct recovery of capital.
2. If all the prescribed conditions are met, one investment project may enjoy only one type of investment credit; one import or export contract may enjoy only one type of export credit.
3. When borrowing capital or requesting guarantees, investment projects, import or export contracts must have financial plans and loan repayment plans evaluated by the Vietnam Development Bank.
4. Investors, importers or exporters that borrow capital or are provided with guarantees or post-investment supports shall use borrowed capital for proper purposes; repay both loan principals and interests under the signed credit contracts; and fulfill the commitments in guarantee or post-investment support contracts as well as the provisions of this Decree.
5. The list of projects entitled to investment credit loans and the list of goods items eligible for export credit loans are promulgated by the Government.
Article 3.- Interpretation of terms
In this Decree, the terms below are construed as follows:
1. "Exporters" mean Vietnamese enterprises and economic organizations, which export goods made in Vietnam.
2. "Foreign importers" (hereinafter called importers for short) mean foreign organizations, which buy goods made in Vietnam.
3. "Lending term" means the period of time from the first capital withdrawal to the full repayment of a loan under a credit contract.
4. "Grace period" means the period of time for execution of a project or performance of an import or export contract in which the investor, the importer or the exporter needs not repay the loan principal but pay the loan interest.
5. "Debt-payment time limit" means the period of time from the first-time payment of a debt to the full payment of that debt under a credit contract.
6. "Debt-payment term" means the period of time prescribed for each payment of a debt within the debt-payment time limit.
7. "Lending" means that the Vietnam Development Bank lends capital to investors, importers or exporters for execution of investment projects or performance of import or export contracts.
8. "Guarantor" means the Vietnam Development Bank.
9. "Guaranteed" means the investor or exporter provided with guarantee by the Vietnam Development Bank.
10. "Guarantee" means an organization which grants loan to the investor or exporter or means bid solicitor for an export contract.
11. "Loan guarantee" means the Vietnam Development Bank's commitment with a capital-lending organization to pay debt for an investor, importer or exporter in case the latter cannot pay or fully pay a debt to the guarantee.
12. "Bid-participation guarantee" means the Vietnam Development Bank's commitment with a bid solicitor to secure an exporter's obligation to participate in bidding. In case the exporter has to pay fine for the violation of bidding regulations but cannot pay or fully pay it to the bid solicitor, the Vietnam Development Bank shall fulfill this obligation on behalf of the exporter.
13. "Contract-performance guarantee" means the Vietnam Development Bank's commitment with a guarantee to secure the proper and complete performance of an exporter's obligations under a contract signed with the guarantee. In case the exporter breaches the contract and has to pay compensation to the guarantee but fails to perform or fully perform this obligation, the Vietnam Development Bank shall perform this obligation on behalf of the exporter.
14. "Post-investment support" means partial interest-rate support provided by the State to investors who borrow capital from credit institutions for investment in projects after the projects have been completed and put to use and the debts have been paid.
Article 4.- State investment credit and export credit plans
1. The state investment credit and export credit plans are announced annually, including the following norms:
a/ Total state investment credit and export credit levels;
b/ Capital sources for materialization of the state investment credit and export credit;
c/ State budget allocations to offset the interest rate difference and post-investment supports.
2. The Vietnam Development Bank shall report to the Ministry of Planning and Investment, the Ministry of Finance and the Vietnam State Bank on the annual and long-term state investment credit and export credit plans for sum-up and inclusion into socio-economic development plans.
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