Project Finance
From renewable energy to infrastructure and industrial parks, large Vietnamese projects are increasingly financed on a limited-recourse basis. IVLF Advisors structures financing, security and offtake arrangements that satisfy both lenders and project sponsors. Our project finance practice takes sponsors and lenders from term sheet to financial close.
Project finance matters we handle
Financing structuring
Advising sponsors and lenders on loan, bond and blended-finance structures for renewable energy, infrastructure and industrial projects.
Security & collateral
Perfecting security over land use rights, assets, shares and receivables under Vietnamese secured-transactions law.
PPAs & offtake agreements
Negotiating power purchase agreements and offtake arrangements that meet bankability standards for domestic and international lenders.
Regulatory & licensing
Coordinating investment, construction, environmental and land approvals that projects need before financial close.
Getting project finance to financial close
Financial close depends on aligning commercial terms with a stack of Vietnamese regulatory approvals — the two workstreams have to move together, not in sequence.
What security can lenders take over a Vietnamese project company?
Depending on structure, lenders can typically take security over land use rights, plant and equipment, project accounts, receivables under offtake contracts, and shares in the project company, subject to registration with the National Registration Agency for Secured Transactions.
Can foreign lenders take security directly in Vietnam?
Yes, though foreign-currency loans and offshore security arrangements require compliance with Vietnam’s foreign exchange and cross-border loan registration rules administered by the State Bank of Vietnam.
How long does it typically take to reach financial close on an infrastructure project?
Timelines vary widely by sector and approval complexity, but sponsors should budget for the land, investment and construction approval chain to run in parallel with financing negotiations rather than after them.
How project finance works in Vietnam today
Project finance in Vietnam sits at the intersection of several regimes: the investment licensing framework, land and construction law, the security registration system, and sector rules for power, infrastructure, industrial and real estate assets. A bankable structure has to satisfy all of them at once – which is why our project finance team pairs finance lawyers with licensing and land specialists on every mandate.
For sponsors
We prepare the project finance package lenders actually want to see: a clean corporate structure, verified land and licence status, an offtake or revenue contract that supports the model, and a security package that can be perfected under Vietnamese registration practice. Gaps are fixed before lenders find them, which shortens negotiation and protects pricing.
For lenders and investors
We run legal due diligence on the project company, verify that proposed security – mortgages over land-attached assets, pledges over shares and receivables, account charges – can be created and enforced, and negotiate direct agreements and step-in rights that survive a sponsor default. Where foreign lenders participate, we advise on offshore loan registration with the State Bank and the remittance mechanics that follow.
Refinancing and workouts
When an operating project needs new money or an existing facility comes under stress, the project finance team restructures on both axes at once: the debt terms with creditors and the licences, land documents and contracts that secure them. The goal is always the same – keep the asset operating while the balance sheet is repaired.
Frequently asked questions about project finance
Can foreign lenders take security over Vietnamese project assets?
Yes, subject to important limits: land-use rights can generally be mortgaged only to onshore licensed credit institutions, so cross-border project finance structures typically combine an onshore security agent holding land-attached security with offshore share pledges and account charges. We design and paper both layers.
Does an offshore project loan need registration?
Medium and long-term foreign loans must be registered with the State Bank of Vietnam before drawdown, and amendments re-registered. Our project finance team manages the registration file, the timing against conditions precedent, and the remittance mechanics at repayment.
How long does a project finance closing take?
For a project with clean licensing and land documents, three to five months from signed term sheet to financial close is a realistic planning figure; renewable energy and infrastructure deals with government counterparties run longer. The largest single variable is how early legal diligence starts – defects found late cost months.
What does IVLF charge?
Project finance mandates are quoted as capped fees per work stream – diligence, documentation, security perfection, registration – agreed in writing before work begins, so sponsors can put a reliable legal line in the financial model.