1. Who Can Apply Online?

The Vietnamese government allows certain entities to apply for foreign loans online through the State Bank's system. Here's a breakdown of who qualifies for this online application process:

Businesses with Direct Loan Agreements: This category applies to companies that have signed a foreign loan agreement directly with a non-resident lender for cash disbursement. These loans are typically used for financing business activities or investments.
Credit Institutions and Foreign Bank Branches: This includes banks and foreign bank branches operating in Vietnam that receive entrusted loans from non-resident lenders. These entrusted loans can then be further disbursed to Vietnamese businesses.
Obligors Repaying Debt: If your company issued a debt instrument (such as a bond) to non-resident investors, you can utilize the online system to register the foreign loan associated with repaying that debt.
Lessees in Foreign Leasing Agreements: This applies to businesses that have entered into a financial leasing agreement where the lessor (the party providing the leased equipment or asset) is a non-resident entity. The online application process can be used to register the foreign loan involved in such agreements.

Important Note: The online application process applies specifically to foreign loans that are not guaranteed by the Vietnamese government. If your loan is secured by a government guarantee, you'll likely need to follow a different application process.

2. Step-by-Step Online Application Process

The online application process for foreign loans in Vietnam might seem complex, but it can be streamlined by following these steps:

A. Account Registration:

Access the State Bank Website: Head to the State Bank of Vietnam's website. Unfortunately, due to regulations, we cannot directly provide the link here. You can search for "State Bank of Vietnam foreign loan registration" to find the official website.
Fill Out the E-declaration: Locate the section for online account applications. Look for an "e-declaration form" and fill it out completely following the website's instructions. This form essentially requests your business information to create an online account for managing your loan application.
Print, Sign, and Submit: Once finished, print out the completed e-declaration form. Don't forget to sign and stamp it with your official company seal. Submit this signed declaration to the State Bank. You have two options:
- Mail: Send the declaration via registered mail to the State Bank's address provided on the website.
- In-Person: Visit the State Bank and submit the declaration directly to the appropriate department.
Account Approval: The State Bank will review your declaration. If everything is in order, they will approve your online account access within 3 working days. You'll receive a notification email with your account login credentials.

B. Applying for the Loan:

Log In: Once you have your login information, return to the State Bank's website and access your newly created account.
Create Enterprise Account: Within your account, you'll need to create a separate profile for your enterprise. This profile will be used to declare specific details about your loan application.
Fill Out the Application: Navigate to the loan application section and meticulously fill out the online form. The form will request various details about your business, the loan amount, and the intended use of the funds.
Submit Online Application: After completing the form, submit it electronically through the online platform.
Print and Sign Application Form: The system will generate a printable version of your completed loan application. Print this form, sign it, and apply your company seal.
Prepare Supporting Documents: Refer to the list of required documents mentioned earlier (loan application guide) and ensure you have everything prepared. These documents typically include copies of legal documents, proof of loan purpose, and the loan agreement (with Vietnamese translation).
Submit Loan Registration Dossier: Compile all the necessary documents, including the signed application form, into a complete dossier. Submit this dossier to the State Bank. You can inquire about submission methods (online upload or physical submission) during the online application process.

Congratulations! By following these steps, you've successfully submitted your online application for a foreign loan in Vietnam. Remember, this guide provides a general overview. It's always recommended to double-check the State Bank's website for the latest information and any specific instructions.

3. Required Documents for Application

Securing a foreign loan in Vietnam requires submitting a comprehensive set of documents to the State Bank. Here's a breakdown of the essential documents you'll need to have prepared:

Mandatory Documents:

Loan Application Form: This is the online form you filled out and then printed, signed, and stamped. Ensure it's properly completed and reflects accurate information.
Borrower's Legal Documents: Provide a certified copy of your company's legal documents. This could include an establishment license, enterprise registration certificate, cooperative registration certificate, or any other equivalent document depending on your business structure.
Proof of Loan Purpose: Depending on how you plan to utilize the loan funds, you'll need to submit different documents. Here are some common scenarios:
- Investment Projects: An investment certificate, investment registration certificate, or a decision approving investment policies will be required.
- Production & Business Plans: A plan outlining the use of foreign loans must be approved by relevant authorities. This plan should comply with the Law on Investment, the Law on Enterprises, and your company's charter.
- Foreign Debt Restructuring: A plan for restructuring your foreign debts, approved by a competent authority, is necessary.
Foreign Loan Agreement: Provide a copy of the foreign loan agreement in its original language along with a certified Vietnamese translation. This document outlines the terms and conditions of the loan between you and the lender.
Guarantee Commitment (if applicable): If your loan is guaranteed by a third party, you'll need documents like a letter of guarantee or a guarantee contract translated into Vietnamese.

Additional Documents (Depending on Specific Situations):

Refer to Article 3 of Circular 03/2016/TT-NHNN for a detailed list of additional documents that might be required in specific circumstances. Here are some general examples:

Competent Authority Approval: In some cases, approval from a competent authority for the foreign loan might be necessary. You'll need to provide the relevant documentation.
Compliance Report: A report demonstrating your company's compliance with State Bank regulations on credit limits and safety ratios may be required.
Bank Confirmation: Documents from your bank confirming the situation of capital withdrawal and repayment (principal and interest) might be necessary.
Profit Distribution Documents (for Vietnamese Dong Loans): If your loan is in Vietnamese Dong, you might need to provide documentation proving lawful profit distribution and bank confirmation of these profits being transferred to the lender's home country.
Explanation for Vietnamese Dong Loans: Loans in Vietnamese Dong might require a written explanation for why you need to borrow in this currency. This explanation needs to be approved by the Governor of the State Bank.

Remember:

It's crucial to have all documents certified by the borrower (your company).
Vietnamese translations of foreign language documents must be certified by a qualified translator.
Double-check the State Bank's website or consult with a financial professional for the latest requirements and any specific needs related to your situation.

4. Loan Registration Confirmation Authority

The authority responsible for confirming your foreign loan registration in Vietnam depends on the size of your loan. Here's a breakdown:

State Bank of Vietnam (Foreign Exchange Management Department):
- Handles registration confirmation and changes for loans with a loan value exceeding 10 million USD (or other foreign currency equivalent).
- Also handles registration confirmation for foreign loans denominated in Vietnamese Dong, regardless of the loan amount.
State Bank Branches:
- Provincial and centrally-run city branches of the State Bank can confirm registration and changes for loans with a loan value of up to 10 million USD (or other foreign currency equivalent).

In simpler terms:

For larger loans (over 10 million USD equivalent) or loans in Vietnamese Dong, the State Bank headquarters in Hanoi will handle the confirmation process.
For smaller loans (up to 10 million USD equivalent) denominated in foreign currencies, the State Bank branch in your province or city will be responsible.

It's important to submit your loan registration dossier to the correct authority based on your loan amount and currency. You can find contact information for State Bank branches on their official website.

5. Application Deadline and Processing Time

There are two crucial timelines to remember when applying for a foreign loan in Vietnam:

Application Deadline:

As a borrower, you have 30 (thirty) days to submit your application for foreign loan registration with the State Bank. This 30-day window starts from the following dates, depending on your specific loan situation:

Signing the Loan Agreement: If you signed a medium- or long-term foreign loan agreement or a written guarantee for a guaranteed loan, the 30 days begin from the signing date.
Capital Withdrawal Agreement: In cases where there's a framework agreement for capital withdrawal, the 30 days start from the date you sign the written agreement for capital withdrawal.
Short-Term Loan Extensions: If you're extending a short-term loan with a total term exceeding 1 year, the 30 days begin from the date of the extension agreement.
Outstanding Short-Term Loan: For short-term loans without an extension agreement but with an outstanding principal balance at the 1-year mark from the first capital withdrawal, you have 30 days from that date to register, provided you haven't fully repaid the loan within 10 days of the 1-year anniversary.

Processing Time by the State Bank:

Once you submit your complete application, the State Bank will review it and provide a response within a designated timeframe. Here's a breakdown of the processing times:

Online Application: If you submit your application electronically with all the necessary and valid documents, the State Bank aims to respond within 12 working days.
Traditional Application: The traditional paper-based application process may take a bit longer, with a response expected within 15 working days of receiving your complete application.
Vietnamese Dong Loans: For loans denominated in Vietnamese Dong, there's an additional approval step involving the Governor of the State Bank. In these cases, the processing time can extend up to 45 working days.

Important Notes:

These are the standard processing times as outlined by the regulations. In some cases, there might be delays due to unforeseen circumstances.
It's always recommended to submit your application well before your desired loan disbursement date to account for any potential processing delays.

By understanding both the application deadline and the processing timeframe, you can ensure a smoother foreign loan registration process in Vietnam.

6. Conclusion

Obtaining a foreign loan in Vietnam can be a great way to finance your business ventures. However, the process can seem complex at first glance. By following the steps outlined in this guide, you'll gain a clear understanding of the online application process for foreign loans not guaranteed by the government in Vietnam. Remember, this guide provides a general overview, and regulations can change. It's always advisable to:

Double-check the State Bank of Vietnam's website for the latest information and any specific instructions.
Consult with a qualified financial professional who can provide personalized guidance based on your specific loan needs.

With careful planning, proper documentation, and a good understanding of the application process, you can increase your chances of securing a foreign loan and propelling your business forward. If you need further explanation on this subject, please don't hesitate to contact us through email at lienhe@luatminhkhue.vn or phone at: +84986 386 648. Lawyer To Thi Phuong Dzung.