Inception date: 01 Jan 2013 | Removal date: open ended

Controls on credit operations

 On 28 December 2012, the State Bank of Vietnam (SBV) issued Circular No. 37/2012/TT-NHNN stating restrictions on foreign currency lending by domestic banks and foreign bank's branches to resident borrowers. This measure replaces an earlier Circular 03/2012/TT-NHNN (see related measure).
The Circular restricts foreign currency lending for - 

  • short, medium or long-term loans to make payments to overseas parties for purchase of goods and services, provided they can demonstrate the ability to pay back from foreign currency revenues
  • short term loans to wholesale enterprises for importing petrol based on their quote for 2013 set by the Ministry of Industry and Trade for overseas payment for petrol. This condition is valid until 31 December 2013.
  • short-term loans for projects to manufacture and trade export goods that pass through the border of Vietnam. This condition is valid until 31 December 2013.
  • loans for overseas direct investment for national projects, such projects should be based on the investment guidelines of the National Assembly, Government or the Prime Minister and should have been issued the Certificate of Overseas Investment by the Ministry of Planning and Investment.
  • other loans for prioritized areas set by the Government and based on the approval of the SBV

For all the above lending, the credit institution has to submit an application to the SBV and submit their evaluations of the projects, ability of the projects to pay back the loans, that the borrowers meet the conditions set by the law for borrowings, that the foreign exchange lendings are for priortized and encourage areas and that the credit institution take responsibility for the evaluation outcome and the information provided in the requests.
The measure takes effect on 1 January 2013.