Hung Quang Nguyen of law firm VILAF provides a
practical guide to cross-border financing in Vietnam, including
recent transaction trends, regulatory developments and the
latest in offshore financing structures
In Vietnam, cross-border financing normally takes place by
way of foreign lenders making loans to onshore borrowers only.
It is extremely rare (and relatively difficult due to
regulatory reasons) for onshore banks to provide financing to
offshore entities or individuals. Such outward loans can
largely be ignored as a matter of practice.
In terms of structuring, similar to other jurisdictions,
financing into Vietnam takes the form of either APLMA-style
syndicated or bilateral loans. The number of bilateral loans
seem to far exceed syndicated ones, given that there is still a
trend for banks in some jurisdictions to finance the investment
of foreign investors from the same jurisdiction in Vietnam.
Not surprisingly, syndicated loans have taken on