INTEGRATED DOCUMENT NO 50VBHN NHNN DATED NOVEMBER 23, 2016, FOREIGN CURRENCY LOANS GRANTED TO RESIDENTS BY CREDIT INSTITUTIONS AND BRANCHES OF FOREIGN BANKS

THE STATE BANK OF
VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.: 50/VBHN-NHNN

Hanoi, November 23, 2016

CIRCULAR
FOREIGN CURRENCY LOANS GRANTED TO RESIDENTS BY CREDIT INSTITUTIONS
AND BRANCHES OF FOREIGN BANKS
The Circular No. 24/2015/TT-NHNN dated December 08, 2015 by the Governor of the State Bank
of Vietnam providing for foreign currency loans granted to residents by credit institutions and
branches of foreign banks, coming into force as of January 01, 2016, is amended and supplemented
by:
The Circular No. 31/2016/TT-NHNN dated November 15, 2016 by the Governor of the State Bank
of Vietnam on amendments to the Circular No. 24/2015/TT-NHNN dated December 08, 2015 by
the Governor of the State Bank of Vietnam providing for foreign currency loans granted to residents
by credit institutions and branches of foreign banks, which comes into force as of January 01, 2017.
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 the Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11 dated December 13,
2005 and the Ordinance on amendments to the Ordinance on Foreign Exchange No. 06/2013/PLUBTVQH13 dated March 18, 2013;
Pursuant to the Government’s Decree No. 70/2014/ND-CP dated July 17, 2014 on guidelines for
the Ordinance on foreign exchange and the Ordinance on amendments to a number of articles of
the Ordinance on foreign exchange;
Pursuant to the Government's Decree No. 156/2013/ND-CP on November 11, 2013 defining the

functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the request of the Director of the Financial Policy Department;
The Governor of the State Bank of Vietnam promulgates this Circular to provide for foreign
currency loans granted to residents by credit institutions and branches of foreign banks1.
Article 1. Scope
This Circular deals with foreign currency loans granted to residents by credit institutions and
branches of foreign banks.
Article 2. Regulated entities
1. Credit institutions and branches of foreign banks that are licensed to trade in foreign exchange
and grant foreign currency loans.


2. Borrowers being residents applying for loans at credit institutions or branches of foreign banks in
accordance with regulations of the law on lending activities.
Article 3. Demand for foreign currency loans
1. Credit institutions and branches of foreign banks shall consider granting the foreign currency
loans serving certain purposes as specified below:
a) Short-term, mid-term and long-term loans used as outward remittance for imported goods or
services, when the borrowers’ foreign currency derived from their business operation is sufficient to
repay such loans;
b) Short-term loans granted to central petroleum importers who are given annual quotas on
petroleum import by the Ministry of Industry and Trade to pay for such import when the borrowers’
foreign currency derived from their business operation is not sufficient to repay such loans;
c) 2 Short-term loans granted to meet domestic entities’ demand for short-term capital for the
purpose of implementation of plans for production and trading in exports through Vietnam’s border
checkpoint from which foreign currency revenue is sufficient to repay such loans. After receipt of a
foreign currency loan disbursed by a credit institution or a foreign bank’s branch, the borrower must
sell such borrowed foreign currency to the credit institution or foreign bank’s branch granting such
loan in the form of spot foreign currency transaction, except where such loan is used for making
payment in which foreign currency is compulsory. This provision comes into effect until December

31, 2017 inclusive;
d) Loans used as outward investments in important national projects which are subject to
investment decisions made by the National Assembly, the Government or the Prime Minister, and
have been granted the Outward Investment Certificate by the Ministry of Planning and Investment.
2. After obtaining the written consent from the State Bank of Vietnam according to the procedures
stipulated in Article 4 hereof with respect to specific cases, credit institutions and branches of
foreign banks shall be permitted to consider their lending decisions on the foreign currency loans
serving purposes other than those specified in Clause 1 of this Article but given priority as
prescribed in Resolutions, Decrees, Decisions, Directives and other documents of the Government
and the Prime Minister.
Article 4. Procedures for approving application for foreign currency loans
1. If there is any demand for foreign currency loans prescribed in Clause 2 Article 3 hereof, the
credit institution or the foreign bank’s branch shall send a written request to the State Bank of
Vietnam for permission to grant foreign currency loans, which contains the following information:
a) The commitment of credit institution or foreign bank’s branch that the plan to use the loan capital
is evaluated and feasible, the borrower satisfies loan requirements prescribed in the Law on lending
activities, and the loans can be collected on schedule (principal and interest);
b) The detailed report made by the credit institution or the foreign bank’s branch on the specific
contents they have evaluated and approved the grant of loans to the borrower: client’s demand for
foreign currency loans used for implementing projects or plans given priority as prescribed in
Resolutions, Decrees, Decisions, Directives and other documents of the Government and the Prime
Minister; the loan limit approved by the credit institution or the foreign bank’s branch; the report on
production and business activities, financial health, monetary sources used for debt repayment made


by the borrower, and other contents, with the purpose of ensuring plans to use such loan capital is
feasible and client’s eligibility for such loans as stipulated by laws;
c) The detailed report made by the credit institution or foreign bank’s branch on foreign currency
capital used as loans as well as shall be committed to balancing their foreign currency capital in
conformity with the loan term and limit; the loan approval required to comply with applicable laws

on lending activities, foreign exchange management, credit limit and prudential ratio in terms of
banking transactions performed by credit institutions and other relevant laws;
d) The commitment of credit institution or foreign bank’s branch to taking responsibility for the
evaluation results, decisions on foreign currency loans granted to borrowers as well as any content
and information provided in the written request.
2. Procedures for approving an application for permission to grant foreign currency loans:
a) The credit institution or the foreign bank’s branch shall submit directly or by post the written
request for permission to grant foreign currency loans to the State Bank of Vietnam (via the
Financial Policy Department);
b) The State Bank of Vietnam shall consider approving grant of foreign currency loans from credit
institution or foreign bank’s branch in accordance with the regulations prescribed in Resolutions,
Decrees, Decisions, Directives and other documents of the Government or the Prime Minister on
sectors given the priority and incentive for development of production and business activities,
changes in foreign exchange market, targets of currency policies, regulations enshrined in this
Circular, and contents of the written request submitted by that credit institution;
c) Within 30 (thirty) working days from the receipt of the written request submitted by a credit
institution or foreign bank’s branch with sufficient information prescribed in Clause 1 of this
Article, the State Bank of Vietnam shall send a written notification which specifies whether the
request is granted or rejected, and provide explanation if the request is rejected.
Article 5. Currency used for loan repayment
1. With regard to foreign currency loans, prescribed in Point a, Point c, Point d Clause 1 and Clause
2 Article 3 hereof, which borrowers have sufficient foreign currency revenues to repay: borrowers
shall pay the loan principal and interest by the currency that they borrow; in case a borrower repays
debt by another foreign currency, that borrower shall be bound to the agreement between the credit
institution or the foreign bank’s branch and borrower in conformity with relevant laws.
On the due date of the foreign currency loan, if borrower’s late repayment in foreign currency is
caused by unexpected events such as borrower’s deferred collection of foreign-currency operating
revenues, borrower’s inadequacy of foreign currency earned from production and business activities
or other legal revenues to repay loans after being inspected and confirmed in writing by the lending
credit institution or branch of foreign bank, the lending credit institution or branch of foreign bank

shall sell foreign currency to the borrower to repay the loan, and the borrower shall make a
commitment to resell such foreign currency back to the lending credit institution or branch of
foreign bank when earning enough foreign currency from their business operation.
2. With regard to foreign currency loans, prescribed in Point b Clause 1 and Clause 2 Article 3
hereof, which borrowers lack legal foreign currency revenues to repay, the lending credit institution
or branch of foreign bank shall sell foreign currency to the borrower in order that the borrower can
repay principal and interest.


Article 6. Responsibility of credit institutions and branches of foreign banks
1. Credit institutions and branches of foreign banks shall grant loans in foreign currency in
accordance with regulations prescribed in this Circular, regulations on lending, foreign exchange
management activities, and prudential ratio that banking transactions performed by credit
institutions and branches of foreign banks must achieve as well as other relevant laws. If there
exists any difference in regulations between this Circular and other documents of the State Bank of
Vietnam on foreign currency lending, regulations enshrined in this Circular shall be applied.
2. Credit institutions and branches of foreign banks shall ensure that foreign currency capital is
balanced to conform to the loan duration and limit when approving foreign currency loans.
3. In case borrowers lack foreign currency earned from their legal foreign currency revenues to
make their loan repayment as prescribed in Article 5 hereof, credit institutions and branches of
foreign banks shall ensure that their legal foreign currency capital is balanced to be sold to
borrowers for the purpose of repaying their loan principal and interest.
4. Not later than the 12th of the month following the reporting month, credit institutions and
branches of foreign banks shall file report on foreign-currency lending activities by filling out Form
01 and Form 02 issued together with this Circular to the State Bank of Vietnam.
Article 7. Implementation3
1. This Circular takes effect from January 01, 2016.
2. The Circular No. 43/2014/TT-NHNN dated December 25, 2014 by the Governor of the State
Bank of Vietnam providing regulations on granting the foreign-currency loans of credit institutions
and branches of foreign banks to residents shall be annulled.

3. With regard to loans that apply the methods of one loan at a time, loan for investment project,
syndication loan according to credit contracts signed by the entry into force of this Circular, credit
institutions/ branches of foreign banks and borrowers shall perform the contents in the credit
contracts signed in accordance with regulations of applicable laws at the time the credit contracts
signed or agree to amend the credit contracts in conformity with regulations in this Circular. In
regard to loans that follow the lending methods of credit limit as agreed upon in credit contract
signed before the effective date of this Circular, and that are disbursed from the effective date of
this Circular, credit institutions/ branches of foreign banks and borrowers shall implement the
regulations laid down in this Circular.
4. The Chief of Office, the Director of the Financial Policy Department and Heads of affiliates of
the State Bank of Vietnam, Directors of Provincial Branches of the State Bank of Vietnam;
Presidents of the Boards of Directors, Presidents of the Member Boards and General Directors
(Directors) of credit institutions/ branches of foreign banks shall be responsible for implementing
this Circular./.

CERTIFIED BY
DEPUTY GOVERNOR


Nguyen Dong Tien

1 The Circular No. 31/2016/TT-NHNN dated November 15, 2016 by the Governor of the State
Bank of Vietnam on amendments to the Circular No. 24/2015/TT-NHNN dated December 08, 2015
by the Governor of the State Bank of Vietnam providing for foreign currency loans granted to
residents by credit institutions and branches of foreign banks is promulgated pursuant to:
“The Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
The Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;
The Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11 dated December 13, 2005 and
the Ordinance on amendments to the Ordinance on Foreign Exchange No. 06/2013/PLUBTVQH13 dated March 18, 2013;
The Government’s Decree No. 70/2014/ND-CP dated July 17, 2014 on guidelines for the

Ordinance on foreign exchange and the Ordinance on amendments to a number of articles of the
Ordinance on foreign exchange;
The Government's Decree No. 156/2013/ND-CP on November 11, 2013 defining the functions,
tasks, powers and organizational structure of the State Bank of Vietnam;
2 This point is amended in accordance with regulations in Article 1 of the Circular No. 31/2016/TTNHNN on amendments to the Circular No. 24/2015/TT-NHNN dated December 08, 2015 by the
Governor of the State Bank of Vietnam providing for foreign currency loans granted to residents by
credit institutions and branches of foreign banks, which comes into force as of January 01, 2017.
3 Article 3 of the Circular No. 31/2016/TT-NHNN on amendments to the Circular No. 24/2015/TTNHNN dated December 08, 2015 by the Governor of the State Bank of Vietnam providing for
foreign currency loans granted to residents by credit institutions and branches of foreign banks,
which comes into force as of January 01, 2017, provides for as follows:
“Article 3. Implementation
1. This Circular enters into force from January 01, 2017.
2. The Circular No. 07/2016/TT-NHNN dated May 27, 2016 by the Governor of the State Bank of
Vietnam on amendments to a number of Articles of the Circular No.24/2015/TT-NHNN on grant of
foreign currency loans to residents by credit institutions and branches of foreign banks dated
December 08, 2015 by the Governor of the State Bank of Vietnam shall be null and void from the
effective date of this Circular.
3. The Chief of Office, the Director of the Financial Policy Department and Heads of affiliates of
the State Bank of Vietnam, Directors of Provincial Branches of the State Bank of Vietnam;
Presidents of the Boards of Directors, Presidents of the Member Boards and General Directors


(Directors) of credit institutions/ branches of foreign banks shall be responsible for implementing
this Circular./.
4 This template is replaced in accordance with regulations in Article 2 of the Circular No.
31/2016/TT-NHNN on amendments to the Circular No. 24/2015/TT-NHNN dated December 08,
2015 by the Governor of the State Bank of Vietnam providing for foreign currency loans granted to
residents by credit institutions and branches of foreign banks, which comes into force as of January
01, 2017.
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