04 new points of Circular No. 79/2025/TT-NHNN on foreign debt recovery

In addition to offshore lending activities, notable new points of Circular No. 79/2025/TT-NHNN on foreign debt recovery by credit institutions and foreign bank branches, effective from December 31, 2025, are summarized below:

1. To add and amend multiple definitions related to foreign debt recovery

Pursuant to Article 3 of Circular No. 79/2025/TT-NHNN, the State Bank of Vietnam has added and revised several definitions related to foreign debt recovery as follows:

• A foreign debt recovery party means a credit institution or a foreign bank branch that conducts foreign debt recovery (hereinafter referred to as the debt recovery party).

• A foreign debt recovery amount means a debt arising from the performance by a credit institution or a foreign bank branch of factoring, letters of credit, bank guarantees, and other credit-granting operations for non-resident customers.

• An offshore loan and debt recovery account means a payment account of the offshore lender or the foreign debt recovery party used for disbursement and foreign debt recovery in offshore lending and foreign debt recovery activities in accordance with this Circular.

Meanwhile, under the previous regulation in Clause 2, Article 1 of Circular No. 13/2016/TT-NHNN, an offshore loan and debt recovery account was defined as a payment account used by a credit institution to carry out offshore lending transactions.
 

 

2. To add forms of foreign debt recovery

This is one of the notable new points of Circular No. 79/2025/TT-NHNN on foreign debt recovery.

Previously, Circular No. 45/2011/TT-NHNN and its amending and supplementing documents did not specifically provide for forms of foreign debt recovery by the lender.

Currently, pursuant to Article 6 of Circular No. 79/2025/TT-NHNN, foreign debt recovery by the offshore lender or the foreign debt recovery party shall be conducted in the following forms:

• Direct recovery from the obligor transferring funds to the offshore lender or the foreign debt recovery party in accordance with relevant laws and agreements between the parties.

• Recovery of an offshore loan from a third party who is a non-resident transferring funds to the offshore lender, except for the case prescribed in Clause 4 of this Article.

  Recovery from a third-party non-resident must be clearly specified in the loan agreement or amended loan agreement and confirmed in the registration confirmation or confirmation of registration of changes to the offshore loan (where the offshore loan is subject to registration with the State Bank).

• Recovery through handling of secured assets.

• Recovery through payment by the guarantor on behalf of the obligor. A guarantor who is a resident shall comply with the law on foreign exchange management when providing guarantees for non-residents.

3. Foreign debt recovery permitted in Vietnamese dong

This notable new point of Circular No. 79/2025/TT-NHNN is provided in Article 12 on the currency of offshore lending.

Under the new regulation, disbursement and foreign debt recovery of an offshore loan shall be conducted in Vietnamese dong or foreign currency in accordance with the agreement between the parties.

Meanwhile, Clause 5 Article 1 of Circular No. 13/2016/TT-NHNN (now expired) only provided that foreign debt recovery by credit institutions must be conducted in foreign currency. At the same time, the currency for debt recovery had to be the disbursement currency of the loan.

This regulation also allowed debt recovery in a foreign currency different from the disbursement currency based on the agreement between the lending credit institution and the foreign borrower.

In addition, offshore lending and foreign debt recovery by credit institutions in Vietnamese dong were only permitted upon obtaining written approval from the State Bank of Vietnam.

Meanwhile, pursuant to Clause 2 Article 12 of Circular No. 79/2025/TT-NHNN, offshore lending in Vietnamese dong shall only be conducted in the following cases:

• The foreign borrower has revenue in Vietnamese dong or purchases Vietnamese dong from a permitted credit institution in Vietnam for loan repayment;

• The foreign borrower falls under the subject specified in point c, Clause 1, Article 10 of this Circular.

4. Changes to the principal repayment schedule must be registered as changes to offshore loans

Accordingly, Article 17 of Circular No. 79/2025/TT-NHNN supplements the obligation to register changes to offshore loans in cases where there is change in the principal repayment schedule as agreed by the parties.

However, this requirement does not apply to cases of foreign debt recovery through realization of collateral or repayment by a guarantor in accordance with agreements on security measures for the offshore loan, where information on the security provider or guarantor has been confirmed by the State Bank.

In addition, in other cases, the lender is responsible for registering changes to the offshore loan with the State Bank, including:

• Change in the loan amount;

• Change in the loan term;

• Change in the disbursement plan.

Note: These changes must fall within the contents already stated in the registration confirmation or confirmation of registration of changes to the offshore loan.

The above summarizes the key new points of Circular No. 79/2025/TT-NHNN on foreign debt recovery.​