Under Circular 03 of the State Bank dated 26 February 2016 on foreign exchange control of foreign loan and repayment by enterprises, as amended (Circular 03/2016), import of goods with deferred payment is one of forms of foreign loan (“deferred payment foreign loan”).

Definition

Deferred payment foreign loan is defined as the import of goods for which the first drawdown date is prior to the final payment date, in which,

· The drawdown date is (i) 45th day from the checking completion date of recorded on the customs declaration if the bill of lading is not required by the bank of borrower; or (ii) 90th day from the issuance date of bill of lading if the bill of lading is required by the bank of borrower.

1. At law, general finance company is defined as a finance company, which is permitted to carry out activities under the Credit Institutions Law 2010. Under the Credit Institutions Law 2010, a finance company is permitted to raise operating capital under the following forms provided that such forms of capital raising are clearly specified in the finance company’s establishment and operation license:

1.1.1. Receipt of deposits from organizations;

1.1.2. Issuance of deposit certificates (chứng chỉ tiền gửi), promissory notes (tín phiếu), debentures (kỳ phiếu) and bonds (trái phiếu) (Valuable Papers) in order to raise capital from organizations; and

1.1.3. Borrowing from both domestic and foreign credit institutions and financial institutions, and from the State Bank of Vietnam (SBV) in the form of refinancing.