The State Bank of Vietnam partially ceased Circular No. 06/2023/TT-NHNN

On August 23, 2023, the State Bank of Vietnam (“SBV”) issued Circular No. 10/2023/TT-NHNN ceasing the effect of Clause 8, Clause 9 and Clause 10, Article 8 of Circular No. 39/2016/TT-NHNN (added according to Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN) on the prohibited loan purposes until further notice.

Specifically, according to Circular No. 10/2023/TT-NHNN, the following loan purposes are not prohibited:

“8. Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership, or shares of a joint-stock company that is not yet listed on the securities market or registered for trading on the UpCom system;

9. Loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects that are unfit for sale or for business operation as prescribed by laws when the credit institution issues its lending decision;

10. Loans used for financial offsetting purposes, except for those meeting the following conditions:

a) The customer has used their own funds for paying costs incurred from their business project for a period of less than 12 months by the time of grant of lending decision by the credit institution;

b) Costs paid using the customer’s funds for executing a business project are costs to be covered using the fund borrowed from the credit institution under the plan to use borrowed fund submitted to the credit institution when applying for a medium term or long-term loan for executing that business project.”

This decision is a part of SBV’s attempt to ease the difficulties that the business community face under the newly issued Circular 06/2023/TT-NHNN under the direction of the Prime Minister.

Circular 06/2023/TT-NHNN, amending and supplementing a number of Articles of Circular No. 39/2016/TT-NHNN dated December 31, 2016 regulating the lending operations of the credit institutions and the foreign bank branches, will take effect on 01 September 2023, except for the suspended part as mentioned above.

Click here for Vietnamese version and/or English version of Circular 06.

Should you need any assistance, please contact AusCham Advocacy Officer, Ms Huong Tran at advocacy@auschamvn.org.