For the interest rate, under the applied regulation Circular No. 12/2014/TT-NHNN on conditions for foreign loans of enterprises that are not guaranteed by the Government, related parties have the right to negotiate foreign loan costs on their own (including foreign loan interest rates and other expenses).
And some other highlights for further reference:
– Need to have this consulted with the bank for their further advice;
– Need to inform the bank first if any ongoing / executed loan agreement. As the bank shall have to create a separate bank account for the company to receive the foreign loan;
– If the loan term is 12 months or less, just needs to submit the statutory reports to State Bank of Vietnam on quarterly basis;
– If the loan term is more than 12 months, need to register this with the State Bank of Vietnam first.