LEGAL UPDATE: Did you know that if you borrow from offshore creditors you have to register the loans with the State Bank of Vietnam or you cannot convert VND to foreign currency to repay the creditors. Loans that have to be registered include: those with terms exceeding one year; one-year loans (short-term loans) that have been extended; one-year loan that have not been extended but repayment has not been made within 10 days from the maturity date. The term of the loans commence from the drawdown date.
The new change is that the new circular makes clear now that short-term loans (those less than 1 year) have to be registered if in fact they remain outstanding for more than 1 year. The new legislation also makes clear that any change (including those to the repayment schedule unless the payment is made within 10 days from the due date) will also have to be registered.
(Circular 25/2014/TT-NHNN, valid 1 November 2014)