Circular No. 05/2016/TT-NHNN amends and supplements certain articles of Circular No. 03/2016/TT-NHNN to manage foreign exchange for enterprises' foreign borrowing and repayment. The main content includes provisions on the term of loans, loan implementation accounts, and procedures related to transferring funds for repayment.
Scope of application
Foreign-invested enterprise
Key points
- For foreign-invested enterprises → may use foreign direct investment capital accounts for activities related to foreign borrowing and repayment, and other transactions related to foreign direct investment.
- Foreign loans in the form of deferred payment import of goods → the date of withdrawal of capital and final payment is specifically determined.
- The term of foreign loans in the form of deferred payment import of goods → from the first day of capital withdrawal to the final payment date.
- In case of changing the loan implementation account due to changes in the service-providing bank or currency, the bank shall be responsible for supervising capital withdrawal and repayment according to regulations.
- When transferring funds for principal and interest repayment of foreign loans in the form of deferred payment import of goods → the borrower must present documents and certificates as required by the service-providing bank.
🌐 Social impact of this document
- Positive impact: Helps foreign-invested enterprises manage their accounts and foreign borrowing and repayment activities more effectively.
- Negative impact: May increase administrative burden for enterprises when implementing changes to accounts or transferring funds for repayment.
❓ Frequently asked questions
What account can foreign-invested enterprises use to borrow and repay foreign debts?
For foreign-invested enterprises, they may use foreign direct investment capital accounts or other foreign borrowing and repayment accounts (not foreign direct investment capital accounts) to conduct transactions related to short-term foreign borrowing.
How is the term of foreign loans in the form of deferred payment import of goods determined?
The term of foreign loans in the form of deferred payment import of goods is determined from the first day of capital withdrawal to the final payment date.
What should enterprises do when changing the loan implementation account?
In case of changing the loan implementation account due to changes in the service-providing bank or currency, the enterprise must present documents and certificates as required by the service-providing bank.
What must be presented when transferring funds for principal and interest repayment of foreign loans in the form of deferred payment import of goods?
The borrower must present documents and certificates as required by the service-providing bank.
When does this circular take effect?
This circular takes effect from April 15, 2016.
Full text
CIRCULAR
Amending and supplementing certain articles of Circular No. 03/2016/TT-NHNN dated February 26, 2016, issued by the Governor of the State Bank of Vietnam guiding certain contents on foreign exchange management for enterprises' foreign borrowing and repayment.
Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to Decree-Law on Foreign Exchange No. 28/2005/PL-UBTVQH11 issued by the Standing Committee of the National Assembly on December 13, 2005, and Decree-Law No. 06/PL-UBTVQH13 dated March 18, 2013 amending and supplementing certain articles of the Decree-Law on Foreign Exchange;
Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;
Pursuant to the Government's Decree No. 219/2013/NĐ-CP dated December 26, 2013 on foreign borrowing and repayment management for enterprises not guaranteed by the Government;
At the proposal of the Director of the Department of Foreign Exchange Management;
The Governor of the State Bank of Vietnam hereby issues this Circular to amend and supplement certain articles of Circular No. 03/2016/TT-NHNN dated February 26, 2016, issued by the Governor of the State Bank of Vietnam guiding certain contents on foreign exchange management for enterprises' foreign borrowing and repayment.
Article 1. Amend and supplement certain articles of Circular No. 03/2016/TT-NHNN
1. Supplement Clause 3, Clause 4, Clause 5, and Clause 6 of Article 4 as follows:
"3. A foreign loan under the form of deferred payment import is an import transaction with the first withdrawal date before the final payment date.
4. The withdrawal date of a foreign loan under the form of deferred payment import is:
a) Ninety days from the issuance date of the transport document if the account service bank requires the payment documents to include the transport document;
b) Forty-five days from the completion date of the customs declaration inspection if the account service bank does not require the payment documents to include the transport document.
5. The final payment date is determined as:
a) The final payment date according to the contract term;
b) The actual final payment date if the contract is not followed or the contract does not specify the payment term.
6. The term of a foreign loan under the form of deferred payment import is the period from the first withdrawal date to the final payment date."
"2. Amending and supplementing Article 23 of Circular No. 41/2016/TT-NHNN as follows:
"2. For Borrowers who are foreign-invested enterprises:
a) For medium and long-term foreign loans: The loan and repayment account is the direct investment capital account. In addition to the income and expenditure related to foreign borrowing and repayment as stipulated in Articles 26 and 27 of this Circular, the Borrower who is a foreign-invested enterprise may use the direct investment capital account (which is also the loan and repayment account) for other income and expenditure related to foreign direct investment in Vietnam according to current laws on foreign exchange management for foreign direct investment in Vietnam.
b) For short-term foreign loans: The Borrower may use the direct investment capital account as stipulated in point a of this clause or another loan and repayment account (which is not the direct investment capital account) to conduct transactions related to foreign borrowing. Each short-term foreign loan can only be conducted through one account service bank. The Borrower may use one account for one or more short-term foreign loans. The income and expenditure of this account are stipulated in Articles 26 and 27 of this Circular."
3. Amend Article 28 as follows:
“ Article 28. Changing the Account for Implementing Foreign Loans
1. In cases where the account for implementing foreign loans is changed due to a change in the bank providing account services, if the Borrower is not a commercial bank or a foreign bank branch, the Borrower shall request the current bank providing account services to confirm the situation regarding capital withdrawal and debt repayment related to the foreign loan so that the new bank providing account services can continue to monitor the implementation of the foreign loan in accordance with the current regulations on managing loans and foreign debts.
2. In cases where the account for implementing foreign loans is changed due to a change in currency but not the bank providing account services, the bank providing account services shall be responsible for supervising the withdrawal of capital and repayment of foreign loans in accordance with the current regulations on managing loans and foreign debts.”
4. Amend Article 32 as follows:
“Article 32. Transfer of Funds for Repaying Foreign Loans through Import of Goods on Credit
When transferring funds for repaying the principal and interest of foreign loans through the import of goods on credit, the Borrower shall be responsible for presenting the documents and certificates as required by the bank providing account services.”
5. Supplement Point d of Clause 2 of Article 34 as follows:
“d) Repayment of short-term foreign loans through the import of goods on credit.”
Article 2. Implementation clause
1. This Circular takes effect from April 15, 2016.
2. The Director of the Office, Heads of the Department of Foreign Exchange Management, Heads of units under the State Bank, Governors of the State Bank branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, General Managers (Directors) of credit organizations, foreign bank branches, and enterprises are responsible for organizing the implementation of this Circular.
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