Vietnam remains an attractive investment destination for foreign investors. Alongside equity investments, both Vietnamese and foreign-invested enterprises continue actively seeking foreign debt capital to expand their businesses or refinance their debt.
The legal landscape on cross-border lending has recently undergone significant changes. These changes have heightened the regulatory focus on the purpose of using foreign loans and the conditions under which Vietnamese borrowers can take out such loans. This enhanced legal framework creates an additional layer of complexity to cross-border lending transactions.
In this updated comprehensive guide, we expound upon the fundamental principles of cross-border lending and security taking in Vietnam. We also address recurrent challenges encountered by foreign lenders and domestic borrowers in their transactions.