Announcement On Notices of New Regulation on Performing Borrowing and Repayment of Offshore Loans

Dear Valued Customer,

Shinhan Bank Vietnam (The bank) would like to express sincere thanks to Customers for using our services during the past time.

To comply the guidance on foreign exchange control in terms of enterprise's foreign loan borrowing and repayment in the circular 12/2022/TT-NHNN dated 30/9/2022 by the State Bank of Vietnam (SBV), The bank would like to make announcement to customers on some more further notices when performing borrowing and repayment of foreignloans as follows:

1. Definition and borrowing term of foreign loan
1.1 Definition and how to determine borrowing term of foreign loan
a. Foreign loan in term of money:
- Is the loan being withdrawn in form of money under the foreign loan's contract.
- The borrowing term is determined from the first withdrawal date to the planned final repayment date.
b. Foreign loan in the form of deferred payment for goods import:
- Is the importing of goods on which the first fund withdrawal date prior to the final payment date, in which:
+ The first fund withdrawal date shall be (i) the 45th day from the completion date of the inspection stated on the customs declaration that has been cleared or (ii) the 90th day from the issuance date of transport documents in case transport documents are required for payment.
+ The final payment date shall be (i) the final payment date of the payment period as stated in the contract or (ii) the final actual payment date in case of non-performance according to the contract or the contract does not specify the payment period.
- The borrowing term is determined from the first fund withdraw date to the final payment date.

1.2 Types of foreign loan based on borrowing term
- Short term foreign loan: Is the loan in which the borrowing term lasts up to one year.
- Medium - long foreign loan: Is the loan in which the borrowing term lasts over one year.

2. Report regulations to the borrower
Periodically, no later than the 5th date of the next month in report period, The Borrower has to make report online about the performing of short, medium and long term foreign loan on the SBV's website ("The website"). Therefore, Customers are pleased to register, update account on the Website to comply the regulations of report.

3. Required documents in withdrawal, repayment of foreign loan
3.1 Foreign loan in the form of money
Required documents in withdrawal, repayment transactions are as follows:

No.	Required documents	Withdrawal	Repayment
1	Loan agreement	x	x
2	Plan (*), investment project (**) on foreign loan usage approved by the borrower's competent authorities (for short term loan)	x
3	Copy of report screen on The website with the borrower's confirmation (for short term loan)	x	x
4	SBV's confirmation for foreign loan (for mid - long term loan)	x	x
5	Confirmation on source of fund (Form remittance 06)	x
6	Confirmation on fund withdrawal and repayment by other bank in case the loan was not processed at The bank	x	x

3.2 Foreign loan in the form of deferred payment of goods import
Required documents in foreign loan transaction in the form of deferred payment of goods import:

No.	Required documents	Short term	Medium - Long term
1	Sales contract	x	x
2	Plan (*), investment project (**) on foreign loan usage approved by the borrower's competent authorities (for short term loan)	x
3	Copy of report screen on the website with the borrower's confirmation (for short term loan)	x
4	Cleared customs declarations forms	x	x
5	Commercial invoice	x	x
6	Bill of lading (optional)	x	x

(*)Means the production and business plan using foreign loans, which proves the legitimate and reasonable purposes of foreign loans of the borrower.

(**)Means the project approved by the competent agency under the form of Enterprise Registration Certificate (ERC), Investment Registration Certificate (IRC) or Decision to accept the policy on Investment law and other relevant applicable regulations.

Required documents mentioned in Article 3 can be changed/updated to comply with the Law and The bank's policy periodically.

Esteemed customers are pleased to be informed and cooperated with The bank to be assure of law compliance.

Regards,
Shinhan Bank Vietnam Limited

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