Under regulations issued by the Ministry of Finance on March 13 and taking effect on May 1, enterprises with foreign capital, all credit institutions (including foreign bank branches), all enterprises in the financial sector (including insurers, reinsurers and brokers), and all companies with shares listed on the stock market must have their financial statements audited annually by a licensed auditing company.
The audit company can also be a branch of a foreign auditing company operating in Viet Nam. All audit companies authorised to conduct these audits must have legal capital of at least VND3 billion (US$143,000), to rise to VND5 billion ($238,000) in 2015.
Audit companies operating in the form of limited liability companies must maintain balance sheet equity of not less than legal capital and must have at least two registered auditors practising in the company.
Extending foreign currency loans to resident borrowers
The State Bank of Viet Nam issued Circular No 03/2012/TT-NHNN on March 8 governing foreign currency loans made by domestic credit institutions and foreign bank branches to domestic borrowers. The new circular aims to reduce demand on foreign currency supplies and pressure on the foreign exchange rate.
Under the circular, domestic credit institutions and foreign bank branches licensed to provide foreign exchange services may extend foreign currency loans to resident borrowers for the purpose of making overseas payment for imported goods and services when such borrowers have sufficient foreign currency from production and business with respect to repayment.
They may also extend short-term loans to cover overseas payments for imports of petrol, with written approval from the State Bank. The State Bank may also approve loans on the basis of foreign currency demand for implementing the projects and business plans in areas prioritised by the Government, or in the case of feasible projects with borrowers' demonstrable ability to make timely repayment of principal and interest.
Under Circular No 03/2012/TT-NHNN, borrowers may not receive a loan in foreign currency against a future stream of foreign revenue from exports. Previously, under Circular No 07/2011/TT-NHNN of March 24, 2011, such borrowers could obtain a foreign currency loan on the condition that it sold subsequent foreign currency revenue to credit institutions in form of SPOT.
Circular No 03 takes effect on May 2 and replaces Circular No 07/2011/QD-NHNN. — BIZCONSULT