Dear Mr/Mrs Attorney, we are seeking legal advice in case my company want to sign a long term loan with an overseas entity or the short term loan become long term next year (when we dd not repay the loan), what should we have to do? Thank you so much.
SB Law thank you for giving us the opportunity to provide our legal consulting services for you. With respect to your questions, we would like to advise as follows:
In case your company want to engage a long term loan agreement with an overseas entity, your company shall need to register the loan with the State Bank of Vietnam(“SBV”). Generally, for the purpose of registration of a long term loan, SBV may require your company to show the Certificate of Investment Registration. However, in this case, since overseas entity invested in your company through M&A process, it does not require your company to obtain a Certificate of Investment Registration. Then, if SBV does not require you to obtain a Certificate of Investment Registration, you do not need to obtain the Certificate of Investment Registration. We may need about two or three months in order to confirm this when the Vietnam Government issues further guidance on implementation of the new investment law 2020.
Clients can find more similar articles of SB Law related to the investment sector below:
Supplementing the State investment capital for state-owned commercial banks