Corporate Law

In the context of economic and market fluctuations that have caused cash flow difficulties for many businesses, raising capital from overseas has become increasingly common. Many enterprises in Vietnam choose to obtain loans from their parent companies, shareholders, or foreign partners in order to maintain their production and business operations. In addition, a number of enterprises previously entered into short-term loan agreements of less than one year with foreign organizations or individuals. However, due to financial constraints, these enterprises have been unable to repay such loans on time and have had to extend the loan term for a longer period. For foreign loans, enterprises should pay particular attention to several key legal obligations in order to avoid risks of non-compliance with foreign exchange management regulations.