Facilitate enterprises to access foreign capital

VCN - Regulations on conditions for foreign loans not guaranteed by the Government have been in effect for a few days, thereby removing obstacles for businesses in borrowing capital from abroad and being more consistent with international practices.
Foreign capital poured into many Southeast provinces at the beginning of the year Foreign capital poured into many Southeast provinces at the beginning of the year
Many factors support foreign capital flow Many factors support foreign capital flow
Attract foreign capital into the stock market Attract foreign capital into the stock market
Conditions for foreign capital loans have become more favourable, in line with the requirements of the current market. Photo: ST
Conditions for foreign capital loans have become more favourable, in line with the requirements of the current market. Photo: ST

In 2014, Circular 12/2014/TT-NHNN on conditions for foreign loans of enterprises not guaranteed by the Government (Circular 12) of the State Bank (SBV) was implemented. Experts say that Circular 12 has set out a management framework for foreign loan conditions for businesses without government guarantees, consistent with the economic context.

However, after more than 9 years of implementation, self-borrowing and self-payment of foreign loans have been greatly affected by fluctuations in the international financial market. Many experts believe adjusting regulations on foreign loan conditions is necessary for the recent complicated and invisible domestic and international economic chaos. Therefore, Circular 08/2023/TT-NHNN (Circular 08) regulating foreign loans not guaranteed by the Government was issued on June 30, 2023, with the spirit of focusing on solving problems arising during the implementation of Circular 12 has created favourable conditions for businesses when making foreign loans.

Accordingly, Circular 08 stipulates that the subjects to apply regulations on conditions for foreign loans not guaranteed by the Government include residents being enterprises, cooperatives, unions of cooperatives, credit institutions and foreign bank branches established, doing business in Vietnam are foreign borrowers (borrowers); credit institutions, foreign bank branches in Vietnam - where the borrower opens accounts for foreign loans and repayments (account service providers).

Circular 08 also stipulates that foreign borrowers in the form of import of goods with deferred payment are not required to comply with the conditions for foreign loans specified in this Circular. Regarding the principle of using foreign loans, Circular 08 stipulates that the borrower is fully responsible for using foreign loans for the right purposes. If the loan has been withdrawn but temporarily not used for lawful foreign borrowing purposes, the borrower can deposit this money source at credit institutions or foreign bank branches operating in Vietnam. However, the maximum term of each deposit cannot exceed 1 month.

Ms Hoang Thi Huyen Trang, Deputy Head of the Foreign Borrowing and Lending Management Department, Foreign Exchange Management Department (SBV), emphasized that compared to Circular 12, Circular 08 has facilitated businesses most in implementing foreign loans such as no requirement to compare loan costs when restructuring foreign debt; Do not require foreign loans in the form of imported goods on deferred payment to comply with loan conditions; Supplementing regulations on loan using plans and loan structure plans, calculating exchange rate loan limit...

In addition, Circular 08 does not change the management method for short-term and medium- and long-term foreign loans; Reduces 01 administrative procedure related to approval of foreign loans in Vietnam Dong and does not give rise to any additional administrative procedures compared to Circular 12. Stipulating foreign loan conditions in the Circular supports businesses in mobilizing foreign loans for production and business within a reasonable range and ensuring national foreign debt safety norms.

The State Bank said that recently, the State Bank has urgently issued many legal documents, including documents on foreign exchange management, to create a complete legal framework, closely following the market, ensuring safe and effective foreign exchange management. During the implementation of these documents, the SBV, as well as relevant state management agencies, will strengthen the inspection and examination of activities of credit institutions and businesses related to foreign currency activities.

Therefore, as an organization providing account services to customers and foreign borrowers, credit institutions are recommended to increase their responsibility in properly grasping regulations and building uniform deployment processes throughout the system, disseminating and guiding customers to understand and comply with regulations on foreign exchange management in general and regulations on self-borrowing and self-repayment of foreign loans in particular.

The representative of the Foreign Exchange Management Department requested credit institutions to enhance the responsibility of banks providing account services when performing payment and money transfer operations in current and capital transactions, document collections and records in providing account services, serving the inspection process of management agencies; guiding customers to comply with regulations on foreign exchange management, conducting money transfer transactions following regulations.

By Huong Diu/ Thu Phuong

Related News

Banks are ready to deploy biometric authentication

Banks are ready to deploy biometric authentication

VCN - According to Decision No. 2345/QD-NHNN dated December 18, 2023 of the State Bank, which will take effect from July 1, money transfer transactions over 10 million VND/time or over 20 million VND/day will require facial authentication. Accordingly, banks are urgently preparing to be ready to implement new regulations within the set deadline.
Considering to impose 5% of VAT on fertilizers

Considering to impose 5% of VAT on fertilizers

VCN - Under the draft amended Law on Value-Added Tax (VAT), fertilizers are expected to be included in the category of goods subject to VAT at a rate of 5% to address the difficulties faced by domestic production enterprises and ensure that this item can compete effectively with imported products of the same type.
With the recovery momentum returning, businesses need to speed up credit

With the recovery momentum returning, businesses need to speed up credit

VCN - In recent instructions, the monetary policy regulator continues to urge banks to implement practical and effective solutions to strive for system-wide credit growth, which will be 5-6% by the end of the second quarter of 2024.
Bac Ninh Customs commits to facilitating Apple and its partners

Bac Ninh Customs commits to facilitating Apple and its partners

VCN - Leaders of Bac Ninh Customs Department commit to creating favorable conditions for Apple and partners cooperating with Apple in the production, business process when carrying out customs procedures in the areas managed by the department (including: Bac Ninh, Bac Giang and Thai Nguyen).

Latest News

Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - 55 localities had an increase in the index of industrial production (IIP) compared to the same period last year, only 8 localities had a decrease in IIP compared to the same period last year.

More News

More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN – Besides 12 fruit and vegetable items; bird's nest, fish meal and some products for the production and processing of animal feed, dairy and seafood products that have been officially exported to China, fresh coconuts, frozen durian, crocodiles, poultry... are expected be officially exported to the Chinese market in the near future.
Việt Nam

Việt Nam's cinnamon exports hits over $96.3 million in five months

Farmers have been continuously working on new techniques to improve the quality and productivity of cinnamon trees.
Việt Nam facilitates the establishment of free trade zones

Việt Nam facilitates the establishment of free trade zones

Earlier, the State has proposed allowing Đà Nẵng City to pilot the establishment of a Đà Nẵng Free Trade Zone connected to the Liên Chiều Seaport. The goal is to implement experimental policies and mechanisms to attract investment to the area.
Digital technology promotes green transformation at businesses

Digital technology promotes green transformation at businesses

VCN - Under pressure from the market, green and digital transformation are placing considerable pressure on businesses. This is also a hot topic discussed and analyzed at the International Forum on Creative Business - IIBF 2024, which just opened on the morning of June 12 in Ho Chi Minh City.
Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s export of fishery products is expected to reach 4.4 billion USD during January-June, a year-on-year increase of 6%, despite such formidable challenges as extreme weather conditions and competitive pressure regarding export prices, high input costs and shortage of materials, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Shifts in investment flows for export-oriented industries

Shifts in investment flows for export-oriented industries

The country's textile, garment and footwear industries have long relied on imported raw materials, causing a current trend of foreign enterprises shifting industries to other countries, said insiders.
Intensive processing enhances spice export value: insiders

Intensive processing enhances spice export value: insiders

A world leading spice exporter with a revenue of some 1.5 billion USD every year, Vietnam should bolster intensive processing and trade promotion to increase added values, experts have said.
Supporting industries needs a push to grow: Insiders

Supporting industries needs a push to grow: Insiders

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.
Greening creates competitive and sustainable advantages for enterprises

Greening creates competitive and sustainable advantages for enterprises

VCN - The gradual greening of production, green factories, green technology, clean materials, green energy, etc., has become an inevitable trend and creates competitive and sustainable advantages for enterprises in the face of difficulties and challenges.
Read More

Your care

Latest Most read
Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - Assessing the industrial production situation in the first five months of the year, the Ministry of Industry and Trade said that IIP is estimated to increase by 6.8 percent compared to the same period last year (the same period in 2023 decreased by
More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN - Notably, at a recent meeting between representatives of the Ministry of Agriculture and Rural Development (Vietnam) and the General Administration of Customs China (GACC), the two sides agreed on cooperation in trade and opening the market for agric
Mobile Version