FOREIGN LOAN REPORTING SERVICE AT THE STATE BANK OF VIETNAM

 

I. SERVICE PROVISION PROCESS AT VINASC:

 

Step 1. Vinasc receives information about the reporting of foreign loans not guaranteed by the Government of the business with the following basic contents:

• The type of loan report that the business needs to carry out: Short-term loan; short-term loan with extension; overdue short-term loan; medium and long-term loan; foreign loan in the form of importing goods on deferred payment;
• Time not yet reported foreign loans to the state bank;
• Customer’s need for loan reporting services: Number of years the customer requests to report now;

Step 2. Depending on each specific case, Vinasc will consider to advise and guide related to the procedures for reporting foreign loans. The two parties discuss to agree on the content of the service. Then Vinasc based on the documents provided to prepare the necessary documents to hand over to the business for authentication;

Step 3. Vinasc guides customers to prepare documents related to the procedures for reporting foreign loans as follows:

• Reporting period:

• Opening balance: Total opening balance; overdue debt;
• Arising during the period: Withdrawal, principal repayment, interest payment;
• Closing balance: Total closing balance; overdue debt balance;

• Next period plan:

• Withdrawal: Total expected withdrawal (of which, the amount of foreign currency sold to the credit institution);
• Debt repayment: Total expected principal repayment (of which, the amount of foreign currency purchased from the credit institution); total expected interest payment;

(*) Customers will provide the following documents to determine the reporting obligation:

• Opening balance: Bank statement of the previous period;
• Arising during the period:
• Foreign loan agreement (short-term; medium and long-term) / Agreement to extend short-term loan to medium and long-term / Loan amendment agreement;
• Incoming/outgoing telegrams;
• Bank statement (determining the money that has entered the Bank);
• Set of import documents: Customs declaration, Bill of Lading; Invoices; Packing list;

• Closing balance:
• Payment order; bank debit note (determining the money from the borrower’s account has been transferred to the lender’s account);
• Set of declarations for import declarations in the reporting period

The documents provided for each specific case are different, so during the service provision process, Vinasc will list the specific list of documents for customers to prepare.

Step 4. Vinasc prepares the following documents and transfers them to the customer for signing (Applicable in case the customer does not have an online account):

• Registration of enterprise account at the State Bank’s online website (Applicable in case the customer does not have an online account);

Detailed list of documents, we will send to you specifically based on the actual situation of your customers.

Step 5. Receive the “Enterprise account registration” file from the customer and check the authenticity of the file (Applicable in case the customer does not have an online account);

Step 6. Register the online account of the business (applicable in case the business does not have an online account)

• Vinasc will register an online account for customers at the website: https://qlnh-sbv.cic.org.vn/qlnh/ and register an account, declare the necessary information and send a registration request.

Step 7. Print the account registration form, send it to the customer to sign & stamp on the declaration, then send it to the State Bank with the Investment Registration Certificate & Business Registration Certificate. (Applicable in case the customer does not have an online account);

• Result: Within 03 working days from the date of receiving the application, the State Bank will issue an account & notify the business of the email address that the unit registered.

Step 8. Log in to your account and report your foreign loan

• Vinasc fills in the foreign loan report data on the website;
• After completing the declaration, Vinasc performs the operation of sending the online application.

Step 9. Transfer specific results to customers.

 

II. SPECIFIC RESULTS

• The foreign loan report has been reviewed by the State Bank

III. ESTIMATED IMPLEMENTATION TIME

• Foreign loan report: 02 working days

The estimated time above is calculated from the date Vinasc receives the full dossier as requested and sent to you. The above time does not include the time to register for an online account on the State Bank’s online website.

IV. SOME NOTES ON FOREIGN LOAN REPORTING

1. Application instructions:

From November 15, 2022, all businesses with foreign loans must carry out the registration procedure and be granted an access account for the borrower on the State Bank’s website to report the loan usage situation according to regulations.

• For short-term foreign loans: Short-term foreign loans that have been withdrawn and repaid before November 15, 2022, continue to be made through current accounts.
• For foreign loans in the form of deferred payment for imported goods: Medium and long-term foreign loans in the form of deferred payment for imported goods that have been registered and confirmed by the State Bank to register changes to foreign loans before the effective date of this Circular shall continue to be implemented (withdrawal, repayment) according to the registration confirmation documents and foreign loan change registration documents. In the event of changes arising in the registration confirmation documents, the foreign loan change registration, the borrower shall implement it on the basis of an agreement with the lender, without having to register the change with the State Bank.
• For foreign loans in Vietnamese dong: Foreign loans in Vietnamese dong that have been confirmed for registration and change registration by the State Bank branch before April 15, 2016, continue to be implemented according to the registration confirmation and change registration documents of the State Bank branch. In the event of changes in the contents of foreign loans in Vietnamese dong that have been confirmed for registration and change registration by the State Bank (Foreign Exchange Management Department), register with the State Bank – Foreign Exchange Management Department or the State Bank branch of the province or city where the borrower is headquartered.
• For foreign loans that have been confirmed the lender’s address in the registration confirmation document, change registration confirmation, in case of a change in the lender’s address but no change in the creditor’s country, the borrower does not need to register a change to the foreign loan.

2. When must the borrower report foreign loans on a monthly basis?

According to Clause 1, Article 41 of Circular 12/2022/TT-NHNN, it is stipulated: “Article 41. Reporting regime for borrowers

1. Periodically every month, no later than the 5th of the month following the reporting period, the borrower must report online the status of short, medium and long-term loans on the Website. In case the Website encounters a technical error and cannot send the report, the borrower shall send a written report according to the form in Appendix 05 issued together with this Circular.”

3. If errors are found in the foreign loan report, what is the borrower’s responsibility?

Clause 3, Article 41 of Circular 12/2022/TT-NHNN stipulates that if errors are found in the foreign loan report, the borrower is responsible as follows: Within 03 working days from the date of detecting errors in the loan and foreign debt repayment reports, the borrower is responsible for reporting online on the Website or reporting in writing in case the Website encounters a technical error in the implementation of short, medium and long-term loans with corrected data; At the same time, notify the State Bank branch by email for the State Bank branch to conduct censorship.

4. Regulations on administrative sanctions in case of non-compliance with regulations?

According to Clause 1, Clause 2, Point a Clause 4 of Article 47, Point a Clause 7 of Article 47 of Decree 88/2019/ND-CP stipulates:

Article 47. Violations of regulations on reporting, management and provision of information

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following violations:
2. a) Violating regulations on time limit, full and accurate requirements from the second time or more in a financial year of statistical reports with a periodicity of less than 01 month;
3. b) Sending reports not on time as prescribed by law, except for the cases specified at Point a of this Clause, Point a, Point c Clause 5 of this Article and Clause 1 of Article 44 of this Decree;
4. d) The data of the submitted report is inaccurate 02 times or more in the financial year;
5. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for failure to send a full report or a report that is not complete in content as prescribed by law.
6. A fine of between VND 30,000,000 and VND 40,000,000 shall be imposed for one of the following violations:
7. a) Untruthful report;
8. Remedial measures:
9. a) Forcing to resubmit a full and accurate report for the violation” Clause 3, Article 3 of Decree 88/2019/ND-CP stipulates the level of fines as follows:

“Forms of sanctions, fines, the right to fine and remedial measures …

3. Level of fines and the right to fine:
4. a) The maximum fine for violations in the field of monetary and banking for violating organizations is VND 2,000,000,000 and for violating individuals is VND 1,000,000,000; b) The level of fine specified in Chapter II of this Decree is the level of fine applicable to individuals; the fine for an organization with the same administrative violation is 02 times the fine for an individual;”

Thus, the act of late reporting of foreign loans will be fined from VND 5,000,000 to VND 10,000,000. The above fine is applied to individuals, while for organizations that have late reporting of foreign loans, the fine will be 02 times the fine for individuals.

At the same time, individuals and organizations that have late reporting of foreign loans are also forced to resubmit a full and accurate report.

*Comprehensive List of Required Documents

No.	Required documents	Implementer
		Customer (1)	Vinasc Group (2)	Vinasc Group handles on behalf of our client (3)
CASES OF REPORTING FOREIGN LOANS THROUGH LOAN AGREEMENT
1	Copy of the borrower’s Enterprise Registration Certificate	X		X
2	Copy of the borrower’s Investment Registration Certificate	X		X
3	Certified true copy of the Foreign Loan Agreement (short-term; medium and long-term)/ Agreement to extend short-term loan to medium and long-term/ Loan amendment agreement; In case the loan agreement is in a foreign language and is signed abroad, it must be legalized by the consulate, translated into Vietnamese and certified;	X		X
4	Certified true copy of incoming/outgoing telegrams;	X		X
5	Copy of the Bank’s notification (determining the money that has entered the Bank);	X		X
6	Certified true copy of Payment order	X		X
7	Certified true copy of Debit note from the bank	X		X
8	Latest loan report	X
9	Account registration form		X
10	Application for foreign loan registration		X
11	Employee introduction letter		X
12	Reporting data (Attached with excel file)		X
CASES OF REPORTING FOREIGN LOANS THROUGH IMPORT AND DEFERRED PAYMENT CONTRACTS
13	Copy of the borrower’s Enterprise Registration Certificate	X		X
14	Copy of the borrower’s Investment Registration Certificate	X		X
15	Contract for import of goods/Contract for sale of imported goods In case the sales agreement is in a foreign language and is signed abroad, it must be legalized by the consulate, translated into Vietnamese and certified;	X		X
16	Certified true copy of Payment order	X		X
17	Certified true copy of Debit note from the bank	X		X
18	A set of import documents: Customs declaration, Bill of Lading; Invoices; Packing list;	X
19	Latest loan report	X
20	Account registration form		X
21	Application for foreign loan registration		X
22	Employee introduction letter		X
23	Reporting data (Attached with excel file)		X

 

(*) According to the process, the customer is obligated to carry out the procedures in column (1) and Vinasc will be obligated to carry out the procedures in column (2).

(*) In some cases, if customers have difficulties in preparing documents, Vinasc can replace the documents in column (3). However, in this situation, we have to consider each specific case and the following issues will arise:

• Costs incurred for processing documents (these costs will vary depending on each state agency, the legal regulations in Vietnam at each stage are also different)
• Additional time incurred due to having to prepare these documents

(*) During the preparation time, customers scan all the above documents so that we can prepare the documents in a timely manner.

(*) In some special situations, state agencies may request additional information to supplement the application. Such as Tax Report…

 

For any information about reporting foreign loans to the State Bank, please contact Vinasc Group Joint Stock Company for detailed advice.