You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 21, 2023

New Regulations on Onshore Loans in Vietnam

Subscribe to Updates

On September 1, 2023, Circular No. 06/2023/TT-NHNN (“Circular 06”) issued by the State Bank of Vietnam on June 28, 2023, will take effect. This circular introduces noteworthy amendments to the regulations concerning the offering of onshore loans to customers by credit institutions (including commercial banks and foreign bank branches).

Introducing New Lending Restrictions but Loosening Refinancing Restrictions

Circular 06 introduces several new categories of loans that credit institutions are not allowed to provide. These include loans for depositing money in accounts; loans for making or acquiring capital contributions or shares in other companies which have not yet been listed on the securities market or registered for trading on the UPCoM system; and loans for paying capital contributions under capital contribution contracts, investment cooperation contracts, or business cooperation contracts for implementation of investment projects that fail to satisfy conditions for being put into business operation. [However, Circular No. 10/2023/TT-NHNN, issued shortly before Circular 06 was to take effect (see related story here), suspended the restrictions on the latter two categories until further notice.]

A new exception in Circular 06 allows credit institutions to offer loans for repaying foreign loans if the foreign loans were granted in the form of deferred payment for purchase of goods. Circular 06 also amends an exception of the previous regulations that new loans for repaying foreign loans or onshore loans from other credit institutions can be offered, as long as the term of the new loan does not exceed the remaining term of the original loan and the refinanced loan has not yet undergone any repayment rescheduling. This exception removes a requirement under the previous regulations that the original loan had to be made “for business purposes.”

Further, Circular 06 introduces the term “financial reimbursement” (“cho vay bù đắp tài chính” in Vietnamese) whereby credit institutions offer loans to customers to reimburse expenses advanced by the customer from its own capital, or capital borrowed from other individuals and non-bank entities, to implement plans or projects for business activities or living purposes.

Credit institutions are not allowed to offer financial reimbursement unless the borrowers can prove statutory conditions are satisfied. First, the borrowers must have used their own capital for paying costs incurred from their business project within the 12-month period before the date of the lending decision. Second, the costs to be reimbursed must be those that are listed in the usage plan approved by the credit institution for the loan for that business project. [The application of these conditions has also been suspended under Circular No. 10/2023/TT-NHNN. For the time being, loans for financial reimbursement are permissible.]

Conditions for Digital Lending by Credit Institutions

Circular 06 provides key conditions for digital lending. To provide digital lending, credit institutions are required to have a level-3 or higher information system used for carrying out digital lending activities. (Information systems are classified in increasing strictness from level-1 to level-5 based on standards for the types of information processed and their respective security level.)

Credit institutions are free to adopt their own measures and technologies for carrying out digital lending, but must satisfy certain requirements such as:

  • Adopting solutions and technologies for ensuring accuracy, confidentiality, and safety during the collection, use, and verification of information;
  • Adopting measures for examining, checking, updating, and verifying information (“eKYC”), and measures for preventing acts of forging, interfering with, and falsifying information;
  • Developing measures for monitoring, identifying, measuring, and controlling risks, and developing risk treatment plans; and
  • Assigning responsibilities to each individual or department for performance of digital lending activities and risk management and control.

The requirement to develop and implement an efficient and secure process of verifying a customer’s identity makes the measures and technologies for eKYC the most essential to minimize the risk of identity fraud. Specifically, for individuals who apply for loans for living purposes and wish to obtain the loans from the credit institution via digital lending as the first transaction for establishing the relationship with such credit institution, the eKYC process must be conducted properly to check and verify that the individuals are the ones conducting the e-transaction and have consented to the loan agreement.

In addition, credit institutions must store and manage, in a full and detailed manner, customer identification information and biometric data of their customers; sounds, images, videos and recordings (as applicable to customer identification); telephone numbers used for conducting transactions; and transaction logs.

The outstanding balance of loans for living purposes for an individual customer who has been identified or duly verified via digital lending may not exceed VND 100,000,000 (approximately USD 4,200).

Other Changes

Circular 06 sets out other new regulations. In particular, credit institutions and their customers may agree on a currency for loan repayment that is different from the lending currency. For a loan having one or more overdue payments, Circular 06 also provides for a more detailed repayment order than the previous regulations.

After issuance of Circular 06 by the State Bank of Vietnam, the Prime Minister requested a working session between Deputy Prime Minister Le Minh Khai and the Governor of the State Bank of Vietnam to study and amend certain unreasonable points in Circular 06 that would too heavily restrict loans to borrowers. There may be further loosening of the requirements in the near future.

[UPDATE: This meeting resulted in the issuance of a new circular on August 23, 2023, which suspended some of the restrictions found in Circular 06, as noted above.]

Related Professionals

Practices

Banking and Finance

Location

RELATED INSIGHTS​ 

June 23, 2026
On May 14, 2026, Thailand published a ministerial regulation in the Government Gazette to prescribe measures for prevention and suppression of technology crimes. The regulation creates a comprehensive procedural framework for returning money and digital assets to victims of technology crimes. It will take effect 90 days after publication (in mid-August 2026), giving affected entities a limited window to prepare. Mandatory Reporting Obligations for Financial Institutions When a deposit account, e-money account, or digital asset wallet is frozen in connection with a technology crime, the relevant financial institution or business operator must report transaction data to the Anti-Money Laundering Office (AMLO) via AMLO’s designated electronic system. Required data elements include account numbers (sender and receiver), names, identification or passport numbers, legal entity registration numbers, phone numbers, remaining balance, damage amount, transaction reference numbers, and the bank case ID. Institutions that already share data through the information-sharing system under the emergency decree are deemed to have satisfied this reporting obligation, creating an incentive for platform participation. When the Royal Thai Police or the Department of Special Investigation seize or freeze assets related to technology crimes, they must provide AMLO with investigation reports, complaint evidence, money-trail data, and account statements. Notification and Claims Process Once the AMLO secretary-general approves verified reports of a technology crime, the account information of persons connected to the crime will be published in the Government Gazette, triggering a 90-day window for victims to file claims and for related persons to file objections. Officers will also publish details on AMLO’s electronic media and send registered mail to identified victims, which will be deemed received after 7 days domestically or 15 days internationally. Victims have 90 days from the date the crime is published in the Government Gazette to file claims through AMLO’s electronic system. Claims must include
Read More
June 9, 2026
On April 28, 2026, the Central Bank of Myanmar (CBM) issued Notification No. 18/2026 introducing the new Foreign Remittance Business Regulations. The new regulations apply to companies intending to operate foreign remittance businesses in Myanmar that are not licensed banks, non-bank financial institutions, or other financial institutions. The regulations supersede and replace the previous regulatory framework governing foreign remittance businesses under CBM Notification No. 21/2019. While the overall structure remains familiar, the new regulations introduce more detailed requirements for licensing, operations, reporting, and compliance, with a stronger focus on transparency and regulatory oversight. Broader Licensing Requirements Under the new regulations, applicants must submit detailed business plans describing the use of information technology and mobile platforms, along with clear plans for handling remittances from workers abroad and resolving customer complaints. Financial Thresholds and Reporting Requirements The baseline financial thresholds remain unchanged. Licensees must maintain a security deposit of MMK 100 million in an escrow account, along with a separate revolving fund dedicated solely to remittance operations. The new regulations introduce more structured reporting obligations. Licensees are now required to submit daily remittance transaction data by the next business day before noon, in addition to monthly and periodic reporting requirements. Foreign bank account statements must also be submitted regularly, and licensees must provide updates on business operations every six months. Strengthened AML and CFT Framework The new regulations place a greater emphasis on anti-money laundering (AML) and counter financing of terrorism (CFT), with tighter controls over management changes. Any changes in shareholding, share transfers, or the appointment of key management personnel such as the managing director require prior approval from the CBM. Licensing Fees and Validity The new regulations increase licensing costs, while maintaining the same validity period of three years. The new regulations provide more detailed grounds for suspension and
Read More
May 25, 2026
After several years of policy discussion and continued efforts led by the Ministry of Commerce (MOC) to relax the list of reserved businesses under the Foreign Business Act B.E. 2542 (1999) (FBA), the reform process has now reached a significant milestone. On May 12, 2026, the Thai cabinet approved in principle two draft subordinate legislative instruments aimed at delisting certain reserved business activities under the FBA and reducing licensing requirements for foreign business operators. These developments signal a renewed and concrete effort by the government to modernize Thailand’s business regulatory framework in order to attract foreign investment and boost Thailand’s competitiveness in the global market. Nine Businesses Set for FBA Delisting Below is a list of the nine businesses that are being targeted for delisting from the FBA’s restrictions. A draft ministerial regulation would delist the first eight reserved businesses, while a royal decree has been drafted to delist the ninth business: Telecommunications services (Type 1 license only, covering operators without their own telecommunications infrastructure), under the supervision of the Office of the National Broadcasting and Telecommunications Commission. Treasury center services subject to the Foreign Exchange Control Act B.E. 2485 and under the supervision of the Bank of Thailand. Securities-collateralized lending, pursuant to the laws governing securities and exchange and derivatives regulated by the Securities and Exchange Commission. Agency, dealer, advisory, or fund management services relating to derivatives where the underlying assets fall outside the scope of the Derivatives Act B.E. 2546 (2003) Intra-group shared services, including administrative, human resources, and IT functions Intra-group domestic debt guarantee services Leasing of partial space for installation of financial service machines and automatic vending machines for employee use Petroleum drilling services Trading of agricultural product derivatives through a futures exchange, with physical delivery or receipt of agricultural products at a futures exchange–designated
Read More
March 5, 2026
Amid increasing financial globalization, Vietnam’s establishment of an International Financial Center (IFC) represents a strategic initiative to attract high-quality foreign investment and enhance the country’s position in the global financial system. In support of this objective, a Specialized Court was introduced under Resolution No. 222/2025/QH15 as a dedicated dispute resolution mechanism within the IFC framework. The Specialized Court at the IFC was subsequently operationalized by Law on the Specialized Court No. 150/2025/QH15, effective from January 1, 2026. Organizational Structure of the Specialized Court The Specialized Court at the IFC is a court within the system of the People’s Courts, organized and operating in accordance with the Law on the Specialized Court, and vested with jurisdiction to adjudicate and resolve cases at the IFC. The Specialized Court is located in Ho Chi Minh City and comprises (i) a Court of First Instance; (ii) a Court of Appeal, and (iii) a supporting apparatus. Jurisdiction of the Specialized Court The jurisdiction of the Specialized Court at the IFC is strictly defined based on both (i) the subject matter of the cases and (ii) the membership status of the parties involved. Specifically, the Specialized Court has jurisdiction over (except for cases involving public interests or the interests of the state) the following: Disputes arising from investment and business activities. Requests for recognition and enforcement in Vietnam of judgments and decisions of foreign courts and foreign arbitral awards. Requests related to dispute resolution by arbitration. Other disputes directly related to investment and business activities (to be specified by the Supreme People’s Court). Additionally, at least one party in the case must be a member of the IFC. The IFC’s membership status is established through registration, recognition as a member, or the grant of a license for establishment and operation within the IFC. In the
Read More