I. Export credit principles
- Providing loans for contracts on export/import of Vietnamese goods which directly recover capital and prove their effectiveness and solvency.
- To get loans, export and import contracts must have financial plans and loan repayment plans appraised by the Vietnam Development Bank.
- Loan-taking exporters and overseas importers shall use the fund for right purposes; repay loan pricipals and interests on time and to the full as stated in the signed credit contracts; fullfil all contractual commitments and regulations of Decree No.75/2011/ND-CP dated 30 August 2011.
- The government shall issuse the list of goods eligible for export credit.
II. Exporters loans
1.1.Borrowers
Exporters include Vietnamese enterprises and economic organizations exporting goods made in Vietnam, having export contracts of goods on the list of those eligible for expoprt credit attached to Decree No.75/2011/ND-CP dated 30 August 2011.
1.2.Credit conditions
- Being borrowers defined in section 1.1 above.
- Exporters have export contracts of goods on the list of those eligible for export credit;
- Having profitable production plans and bussiness plans appraised and loan provision approved by the Vietnam Development Bank;
- Exporters have full legal capacity and full civil act capacity;
- Exporters shall follow the provisions on loan security of Decree No.75/2011/ND-CP dated 30 August 2011; buy asset insurance at insurance enterprises lawfully operating in Vietnam for loan-formed assets subject to compulsory throughout the loan term;
- Exporters shall implement bookeeping and prepare financial statements in accordance with the Law and have their annual finacial statements audited by independent auditors.
1.3.Loan currency
The loan currency is Vietnam dong.
1.4. Loan amount
a. A loan amount must not exceed 85% of the value of a signed export contract or the value of an L/C in case of pre-shipping contract, or the value of a validate bill of lading in case of post shipping, provided loan amount to any exporter must not exceed 15% of the actual charter capital of the Vietnam Development Bank.
b.The Director General of the Vietnam Development Bank shall decide the loan amount in each case.
c. In special case in which exporters must take loans exceeding the maximum amount specified above, the Vietnam Development Bank shall report such cases to the Ministry of Finance for further submission to the Prime Minister for consideration and decision.
1.5. Loan maturity
a.The loan maturity shall be determined based on the capital- recovering capability relevant to characteristics of each export contract and solvency of exporters but shall not exceed 12 months.
b.The maximum loan maturity for exported seagoing ship is 24 months.
c.The General Director of the Vietnam Development Bank shall decide on the loan term for each commodity.
1.6. Loan interest rate
- The export credit interest rate shall be reported by the Chairman of the Board of Management of the Vietnam Development Bank to the Ministry of Finance for further announcement , on the principle that it must be matched with the interest rates on the market.
- The overdue debt interet rate for each disbursed amount equals 150% of the loan interest rate within the loan term for such disbursed amount under the credit contract signed with the Vietnam Development Bank.
- Interest rates for loans as appointed by the Government or under Government agreements are implemented accordance to decision of competent authorities.
1.7. Capital disbursement and debt collection
The Vietnam Development bank shall directly disburse capital and collect debts or entrust domestic or overseas lawfully operating financial institutions or credit institutions to disburse capital and collect debts.
1.8. Loan security
- Exporters when borrowing from the State’s export credit, must undertake loan security measures at the Vietnam Development Bank in compliance with the law on secured transactions.
- Loan security measures include: mortgage, collaterals, use of assets created in the future and other security measures (if applicable) according to the law and regulations on secured transactions.
- The Vietnam Development Bank is entitled to handle the secured assets according to the law on secured transactions; reform, repair , enhance assets for sale, lease , exploiting or joining capital by secured assets in compliance with the law for economic institutions with the purpose of debt recovery.
III.Overseas importer loans
1.1.Eligible borrowers
Overseas importers include organizations buying goods made in and exported from Vietnam, having contracts on import of goods on the list of those eligible for export credit attatched to Decree No.75/2011/ND-CP on 30 August 2011.
1.2.Credit conditions
- Eligible applicant as specified in section 1.1 above
- Overseas importers have import contracts signed with enterprises or economic institutiions of Vietnam.
- Overseas importers have profitable production plans and business plans appraised and loan provision approved by the Vietnam Development Bank.
- Overseas importers have full legal capacity and full civil act capacity.
- Overseas importers must have loan guarantee from their country’s governments, central banks or finacial institutions with export credit function.
1.3.Loan currency
The loan currency is Vietnam dong.
1.4.Loan amounts
a. A loan amount must not exceed 85% the value of a signed import contract, provided loan amount to any overseas importer shall not exceed 15% of the actual charter capital of the Vietnam Development Bank.
b. The Director General of the Vietnam Development Bank shall decide the loan amount for each case in accordance to clause a above.
c. In special case in which projects and investors must take loan exceeding the maximum levels specified above, the Vietnam Develoment Bank shall report such case to the Ministry of Finance for further submission to the Prime Minister for consideration and decision.
1.5. Loan interest rate
- The export credit interest rate shall be reported by the Chairman of the Board of Management of the Vietnam Development Bank to the Ministry of Finance for for further announcement, on the principle that it must be matched with the interest rate on the market.
- The overdue debt interest rate for each disbursed amount equals to 150% of the loan interest rate within the loan term for such disbursed amount under the credit contract signed with the Vietnam Development Bank.
- Interest rates for loans as appointed by the Government or under Government agreements are implemented accordance to decision of competent authorities.
1.6. Loan maturity
a. The loan maturity shall be determined based on the capital-recovering capability relevant to characteristics of each import contract and solvency of the overseas importers but shall not exceed 12 months.
b. The General Director of the Vietnam Development Bank shall decide on the loan maturity for each commodity under clause a above.
1.7. Capital disbursement and debt collection
- The Vietnam Development bank shall directly disburse capital and collect debts or entrust domestic or overseas lawfully operating finiancial institutions or credit institutions to disburse capital and collect debts.
- The Vietnam Development Bank’s provision of loans to overseas importers shall be strictly implemented in accordance to regulations of the State Bank of Vietnam.
IV. List of goods eligible for export credit
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No.
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GOODS
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I
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AGRICULTURAL, FORESTRY AND AQUATIC PRODUCTS
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1
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Tea
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2
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Pepper
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3
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Processed cashew nuts
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4
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Vegetables and fruits (canned, fresh, dried, preliminarily, processed, fruit juice)
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5
|
Sugar
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6
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Livestock and poultry meat
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|
7
|
Coffee
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|
8
|
Aquatic products
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|
II
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HANDICRAFTS AND FINE-ART PRODUCTS
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|
1
|
Rattan and bamboo products and other hand-made products from other raw materials
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|
2
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Fine-art porcelain and china products
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|
3
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Timber products for export
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|
III
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INDUSTRIAL PRODUCTS
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|
1
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Components of equipment in complete sets and equipment in complete sets
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|
2
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Power engines and diesel engines
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3
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Power transformers of all kinds
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4
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Plastic products for industrial and conduction
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5
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Home-made electrics wires and cables
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6
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Seagoing ships
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7
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Light bulbs and tubes
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IV
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SOFTWARE
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Source: VDB