From October 20, the loan capital level for a project will be at most equal to 70 percent of the total investment capital level of that project (excluding liquidity capital) whereas the figure for an export or import contract will be 85 percent of the total value of the contract or the L/C value, for a loan provided before goods delivery, or the value of valid drafts, for a loan provided after goods delivery.
Such is provided in Government Decree No. 75/2011/ND-CP of August 30, on the State’s investment and export credit. The maximum lending to an investment project or an export-import contract may not exceed 15 percent of Vietnam Development Bank’s charter capital.
The lending term must not exceed 12 years, for import-export contracts, and 12 months, for projects, basing on the capital recovery capability of a project or a contract and the loan-repayment capability of the investor or the foreign importer and exporter.
Investors wishing to lend investment credits must have investment projects on the list of those entitled to investment credit loans; carry out investment procedures under regulations; have efficient production or business projects or schemes, ensure the payment of debts, secure loan money, contribute at least 20 percent of the total investment capital to the project and ensure the remaining necessary funding.
Exporter having contracts on the export, and importers having contracts on the import, of goods on the list of goods entitled to export credit capital; having efficient production and business plans and having full legal capacity and civil act capacity will be entitled to borrow loans.