1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/01/2020

1.1.  Decree No. 86/2019/NĐ-CP dated on 14/11/2019 prescribing legal capital of credit institutions and foreign bank branches

• Name of legal document: Decree No. 86/2019/NĐ-CP issued on 14/11/2019 by the Gorverment prescribing legal capital of credit institutions and foreign bank branches (referred to as the “Decree No. 86/2019/NĐ-CP”).
• Effective date: 15/01/2020.

Some content should be noted:

• Firstly, regulating levels of legal capital.

Specifically, Clause 1, Clause 2, Clause 3, Clause 4 Article 2 stipulates: “Article 2. Levels of legal capital

1. Commercial banks: 3,000 billion dong.
2. Policy banks: 5,000 billion dong.
3. Cooperative banks: 3,000 billion dong.
4. Foreign bank branches: 15 million U.S. dollars (USD).”

• Secondly, regulating on transitional provisions for credit institutions (except people’s credit funds) or foreign bank branches licensed regarding to legal capital before the entry into force of this Decree.

Specifically, Clause 1 Article 3 stipulates: “Article 3. Transitional provisions

1. Credit institutions (except people’s credit funds) or foreign bank branches licensed before the entry into force of this Decree must ensure that the minimum amount of their actually contributed or allocated charter capital is at least equal to legal capital levels stated in Article 2 herein from the effective date of this Decree.”  

1.2. Circular No. 22/2019/TT-NHNN regulations on limitations and ratio of security assurance in operations of banks and branches of foreign banks

• Name of legal document: Circular No. 22/2019/TT-NHNN issued on 15/11/2019 by the State Bank of Viet Nam regulations on limitations and ratio of security assurance in operations of banks and branches of foreign banks (referred to as the “Circular No. 22/2019/TT-NHNN”).
• Effective date: 01/01/2020.

Some content should be noted:

• Firstly, regulating restrictions and limits on credit extension.

Specifically, Article 10 of Circular No. 22/2019/TT-NHNN stipulates: “Article 10. Restrictions and limits on credit extension

1. Banks, branches of foreign banks comply with the regulations on cases which are not granted credit extension, which are credit restriction and credit limit according to Article 126, Article 127 and Article 128 of the Law on Credit Institutions (amended and supplemented).

2. Banks, branches of foreign banks shall base themselves on the own capital to be determined according to the provisions of Clause 3 of this Article at the end of the latest working day to determine credit extension restrictions and limits according to the provisions of Clause 1 this.

3. The own capital is determined as follows:

a) For banks and/or branches of foreign banks that implement the minimum capital adequacy ratio in accordance with this Circular, banks using separate equity capital, branches of foreign banks shall use their own capital in accordance with regulations at Article 9 of this Circular.

b) For banks, branches of foreign banks implement capital adequacy ratio according to Circular 41/2016/TT-NHNN, banks, branches of foreign banks use own capital as prescribed in Circular No. 41/2016/TT-NHNN.”

• Secondly, providing on management of credit extension.

Specifically, Article 13 of Circular No. 22/2019/TT-NHNN stipulates: “Article 13. Management of credit extension

1. Banks and branches of foreign banks shall manage credit extension activities according to the provisions of law and the internal regulations on credit extension and loan management to ensure the use of loan capital for the right purposes provided at Clause 1, Article 4 of this Circular.
2. Banks and branches of foreign banks must prepare and update immediately upon any change of the list of founding shareholders, major shareholders, capital contributing members, members of the Board of Directors and members of the Board of members, members of the Supervisory Board, executives and other management titles in accordance with the laws, the organization and operation charter of the bank and related persons of these people. This list must be made public throughout the system of banks, branches of foreign banks and sent directly or via postal service to the State Bank as prescribed at Points a and b, Clause 6, Article 4 of this Circular.
3. Banks and branches of foreign banks must report to:
4. a) The General Meeting of Shareholders, the Members’ General Meeting of credit extensions to the subjects specified in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented) arising until the time of taking the number whether to convene a General Meeting of Shareholders, a General Meeting of Members;
5. b) Owners, capital contributors, managers, executives when giving credit to subjects defined in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented) );
6. c) The State Bank shall comply with the State Bank’s regulations on the regime of statistical reporting of credit extension to subjects defined in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented).
7. Credit extension to subsidiaries, associated companies and entities listed in Clause 2 of this Article (except for cases where credit is not provided for in Article 126 of the Law on Credit Institutions (already amended, supplemented)) must be approved by the Board of Directors, Board of Members (for banks), General Director/Director (for branches of foreign banks), except for credit extension under the authority of the General Meeting of Shareholders. The Supervisory Board must supervise credit approval for these subjects.”

1.3. Circular No. 24/2019/TT-NHNN provisions on refinanced loanS in the form of re-lending according to credit dossier for credit institutions

• Name of legal document: Circular No. 24/2019/TT-NHNN issued on 18/11/2019 by the State Bank of Viet Nam provisions on refinanced loans in the form of -re-lending according to credit dossier for credit institutions (referred to as the “Circular No. 24/2019/TT-NHNN”).
• Effective date: 18/01/2020.

Some content should be noted:

• Firstly, proving interest rate.

Specifically, Article 6 of Circular No. 24/2019/TT-NHNN stipulates: “Article 6. Interest rate

1. The interest rate of refinanced loan, extension of refinanced loan in the form of re-lending according to credit dossier is the interest rate of refinanced loan announced by the State Bank in each period at the time when the refinanced loan amount is disbursed, extended.
2. Overdue interest on the refinanced loan principal equals 150% of the interest rate applicable to refinanced loan.”

• Secondly, providing terms of refinanced loan and extension of refinanced loan.

Specifically, Article 7 of Circular No. 24/2019/TT-NHNN stipulates: “Article 7. Term of refinanced loan, extension of refinanced loan

1. The term of refinanced loan in the form of re-lending according to the credit dossier shall be considered and decided by the State Bank and must be less than 12 months.
2. Each extension period must not exceed the term of refinanced loan; total refinanced loan time and refinanced loan extension must not exceed 12 months.”

1.4. Circular No. 25/2019/TT-NHNN amendments to the Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of the State bank of Vietnam providing for licensing and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam

• Name of legal document: Circular No. 25/2019/TT-NHNN issued on 02/12/2019 by the State Bank of Viet Nam amendments to the Circular No. 40/2011/TT-NHNNdated December 15, 2011 of the Governor of the State bank of Vietnam providing for licensing and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam (referred to as the “Circular No. 25/2019/TT-NHNN”)

Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of the State bank of Vietnam providing for licensing and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam (referred to as the “Circular No. 40/2019/TT-NHNN”)

• Effective date: 17/01/2019.

The content should be noted: Adding the provision on modification of license of representative offices[1].

Specifically, Clause 4 Article 1 of Circular No. 25/2019/TT-NHNN stipulates: “Article 1. Amendments to Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of the State Bank of Vietnam providing for the licensing and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam (hereinafter referred to as “Circular No. 40/2011/TT-NHNN”)

…

4. Section 5 is added to Chapter II as follows:

“Section 5

MODIFICATION OF LICENSE OF REPRESENTATIVE OFFICES

Article 18d. General provisions on changes in a representative office

1. A representative office shall prepare an application for modification of its license and then submit it directly or by post to the SBV’s provincial branch as prescribed in Point a Clause 2 Article 18dd of this Circular (Circular No. 40/2011/TT-NHNN) if it has the following changes;

a) Change of its name;

b) Relocation to another province or city;

c) Extension of operation duration.

2. A representative office shall send a written notification directly or by post to the SBV’s branch in province or city where it is located within 07 business days from the occurrence of one of the following changes:

a) Change of its chief representative;

b) Relocation within the same province or city;

c) Change of address without change of its location.

3. Representative offices shall prepare application for modification of license in the case prescribed in Clause 1 of this Article according to provisions in Article 13 of this Circular (Circular No. 40/2011/TT-NHNN).

4. After obtaining an approval from the SBV’s provincial branch for its modification of license with respect to the changes specified in Clause 1 of this Article (Circular No. 40/2011/TT-NHNN), the representative office shall:

a) carry out procedures for registration of changes with a relevant competent authority;

b) start operation at the new location and terminate operation at the previous location within 06 months after obtaining an approval from the SBV’s provincial branch for its modification of license with respect to the change specified in Point b Clause 1 of this Article (Circular No. 40/2011/TT-NHNN);

c) publish the changes on SBV’s mass media and 03 consecutive issues of a daily printed newspaper or an online newspaper of Vietnam within 07 working days after obtaining an approval from the SBV’s provincial branch for its modification of license.

Article 18dd. Application and procedures for modification of license of representative offices

1. An application for modification of license with respect to the changes specified in Clause 1 Article 18d of this Circular (Circular No. 40/2011/TT-NHNN)include:

a) An application form for modification of license which bears the signature of the legal representative of the foreign credit institution, or other foreign organization performing banking activities, and includes the following contents:

(i) Current contents;

(ii) Contents to be changed.  In case of change of name, the new name must comply with provisions in Clause 1 Article 23 of this Circular (Circular No. 40/2011/TT-NHNN);

(iii) Reasons for such changes;

b) Documents explaining the change (in case of change of name); or documents proving that the representative office has or will have the right to use the new location (in case of relocation of a representative office);

c) Financial statements of the foreign credit institution or other foreign organization performing banking activities of the year preceding the year of application, which have been audited by an independent audit firm, and general report on operations of the representative office in case of extension of operation duration (which must specify the operations of the representative office within 03 years preceding the year of application and operation plan for the following year).

2. Procedures for modification of license:

a) The representative office shall submit an application to the SBV’s branch in the province or city where it is located in case of change of name or extension of operation duration, or where it is relocated to in case of relocation of the representative office.  In case of extension of operation duration, the application must be submitted at least 60 days before the expiry date of the license;

b) If an application is insufficient or invalid, within 05 business days from the receipt of the application, the SBV’s provincial branch shall request the representative office in writing to complete it;

c) Within 30 days from the receipt of sufficient and valid application, the SBV’s provincial branch shall issue a decision on modification of the license of the representative office.  If an application is refused, the SBV’s provincial branch shall give a written response indicating reasons for such refusal to the applicant.””

1.5. Circular No. 07/2019/TT-BTP guiding a number of contents of the registration of the mortgage of land use right and land-attached assets

• Name of legal document: Circular No. 07/2019/TT-BTPN issued on 25/11/2019 by the judicial providing guiding a number of contents of the registration of the mortgage of land use right and land-attached assets (referred to as the “Circular No. 07/2019/TT-BTP”).
• Effective date: 10/01/2020.

Some contents should be noted:

• Firstly, regulating on registration of mortgage of land use rights and land-attached assets.

Specifically, Article 4 of Circular No. 07/2019/TT-BTP stipulates: “Cases of registration of the mortgaging of land use rights and properties on land

Article 4. Cases of registration of the mortgaging of land use rights and properties on land

1. Cases of registration of the mortgaging of land use rights and properties on land:

a) Registration of mortgaging of land use rights;

b) Registration of mortgaging of properties on land;

c) Registration of mortgaging of land use right and properties on land;

d) Registration of mortgaging of future acquired properties on land;

dd) Registration of mortgaging of land use rights and future acquired properties on land;

e) Registration of mortgage of construction investment projects of construction works being housing, investment projects of construction works not being housing, other construction investment projects according to the provisions of law;

g) Registration of changes to registered mortgaging;

h) Registration of written notification of settlement of collaterals in case mortgaging has been registered;

i) Removal of mortgage registration.

2. In case of registration of mortgages as prescribed at Point e, Clause 1 of this Article is perform like the registration of mortgage of land use rights, future acquired properties on land being housing, construction works.

3. The mortgage registration prescribed in Clause 1 of this Article is carried out in cases of mortgages to guarantee the performance of civil obligations of the mortgagor, to guarantee the performance of civil obligations of others or guarantee the performance of civil obligations for both the mortgagor and the others.”

• Secondly, regulating forms of registration of mortgage of land use rights and land-attached assets.

Specifically, Article 21 of Circular No. 07/2019/TT-BTP stipulates: “Article 21. Registration form of registration of mortgage of land use rights and land-attached assets

Composition of a dossier of registration of registration of mortgage of land use rights and land-attached assets made according to forms promulgated together with this Circular, comprises:

1. Form No. 01/DKK: Mortgage registration request form;
2. Form No. 02/ĐKTĐ-SCSS: The written request of registration of changes, corrections of errors;
3. Form No. 03/DKKB: The written request of registration of a written notice of mortgage asset handling;
4. Form No. 04/XĐK: The written request of deletion of registration;
5. Form No. 05/CTĐK: The written request of forwarding mortgage registration;
6. Form No. 06/BSCB: Additional pages on mortgage contracting parties;
7. Form No. 07/BSTS: Additional page on mortgage assets;
8. Form No. 08/DMHĐTC: List of registered mortgage contracts;
9. Form No. 09/SĐKTL: The book of registration of mortgage of future acquired properties on land;
10. Form No. 10/VBTB: The written notice of temporary suspension or stop of mortgage registration; notify the distraint and clearance of land use right and land-attached assets.”

• Thirdly, regulating the implementation effect of Circular No. 07/2019/TT-BTP.

Specifically, Article 22 of Circular No. 07/2019/TT-BTP stipulates: “Article 22. Effect

1. This Circular takes effect from January 10, 2020.
2. This Circular replaces Joint Circular No. 09/2016/TTLT-BTP-BTNMT of June 23, 2016 of the Minister of Justice and the Minister of Natural Resources and Environment instructions on registration of mortgaging of land use rights, properties on land.”

• Fourthly, detail of Mortgage registration request form.

“Mẫu số 01/ĐKTC

BÊN NHẬN THẾ CHẤP (HOẶC NGƯỜI ĐẠI DIỆN CỦA BÊN NHẬN THẾ CHẤP/QUẢN TÀI VIÊN)
(Ký, ghi rõ họ tên và đóng dấu, nếu là tổ chức)

PHẦN CHỨNG NHẬN CỦA CƠ QUAN ĐĂNG KÝ

Văn phòng đăng ký đất đai: …………………

………………………………………………………………………………………………………………

Chứng nhận việc thế chấp ……………………………………………………………………………… đã được đăng ký theo những nội dung kê khai tại Phiếu yêu cầu này tại thời điểm …. giờ…. phút, ngày…. tháng…. năm…….

…………, ngày …. tháng …… năm ……
THỦ TRƯỞNG CƠ QUAN ĐĂNG KÝ
(Ghi rõ chức danh, họ tên, ký và đóng dấu)

HƯỚNG DẪN KÊ KHAI

1. Hướng dẫn chung

1.1. Nội dung kê khai rõ ràng, không tẩy xóa.

1.2. Đối với phần kê khai mà có nhiều lựa chọn khác nhau thì đánh dấu (X) vào ô vuông tương ứng với nội dung lựa chọn

2. Kê khai về bên thế chấp, bên nhận thế chấp:

2.1. Tại điểm 1.4 và điểm 2.4: Nếu bên thế chấp, bên nhận thế chấp là cá nhân trong nước thì kê khai về chứng minh nhân dân, căn cước công dân, chứng minh được cấp theo Luật sỹ quan Quân đội nhân dân Việt Nam, Luật quân nhân chuyên nghiệp, công nhân và viên chức quốc phòng hoặc giấy tờ xác định tư cách pháp lý khác theo quy định của pháp luật; người Việt Nam định cư ở nước ngoài, cá nhân nước ngoài thì kê khai về hộ chiếu; nếu là tổ chức thì kê khai về Giấy chứng nhận (GCN) đăng ký thành lập (nếu có), GCN đăng ký doanh nghiệp, GCN đăng ký hoạt động chi nhánh, văn phòng đại diện/Giấy phép(GP) thành lập và hoạt động hoặc Quyết định thành lập hoặc GP đầu tư, GCN đầu tư, GCN đăng ký đầu tư.

2.2. Khi cần kê khai thêm về bên thế chấp, bên nhận thế chấp mà không còn chỗ ghi tại Mẫu số 01/ĐKTC thì ghi tiếp vào Mẫu số 06/BSCB.

3. Mô tả về tài sản thế chấp:

3.1. Trường hợp tài sản thế chấp không bao gồm quyền sử dụng đất thì không kê khai nội dung về quyền sử dụng đất tại điểm 3.1.

3.2. Tại điểm 3.2.3: Kê khai như sau:

a) Nếu tài sản thế chấp là nhà thì phải kê khai loại nhà (nhà ở, nhà xưởng, nhà kho, …), số tầng, diện tích xây dựng (diện tích chiếm đất), diện tích sử dụng, địa chỉ nhà đó.

b) Trường hợp tài sản thế chấp là nhà chung cư thì ghi tên của nhà chung cư, số tầng, diện tích xây dựng (diện tích chiếm đất), tổng số căn hộ, địa chỉ nhà chung cư đó.

c) Trường hợp tài sản thế chấp là căn hộ trong nhà chung cư thì ghi “căn hộ chung cư” và ghi số của căn hộ, tầng số, diện tích sử dụng của căn hộ, địa chỉ nhà chung cư đó.

d) Trường hợp tài sản thế chấp là công trình hạ tầng kỹ thuật thì ghi loại công trình hạ tầng, tên từng hạng mục công trình và diện tích chiếm đất của hạng mục công trình đó. Đối với công trình kiến trúc khác thì ghi tên công trình và diện tích chiếm đất của công trình, địa chỉ nơi có công trình.

đ) Trường hợp tài sản thế chấp là cây rừng, cây lâu năm thì ghi loại cây rừng, loại cây lâu năm, diện tích, địa chỉ nơi có cây rừng, cây lâu năm.

3.2. Tại điểm 3.4.1: Kê khai thông tin về số Giấy chứng nhận quyền sử dụng đất, quyền sở hữu nhà ở và tài sản khác gắn liền với đất của nơi có dự án xây dựng nhà ở; trường hợp không có Giấy chứng nhận về quyền sử dụng đất, quyền sở hữu nhà ở và tài sản khác gắn liền với đất thì kê khai thông tin về Quyết định giao đất, cho thuê đất tại điểm 3.4.2.

3.3. Khi cần kê khai thêm về tài sản thế chấp mà không còn chỗ ghi tại Mẫu số 01/ĐKTC thì ghi tiếp vào Mẫu số 07/BSTS.

Mục bên thế chấp, bên nhận thế chấp ký tên:

4.1. Trường hợp người đại diện của bên thế chấp, bên nhận thế chấp là cá nhân thì ký, ghi rõ họ tên của người đại diện:

Trường hợp người đại diện của bên thế chấp, bên nhận thế chấp là pháp nhân thì ký, ghi rõ họ tên, chức vụ của người đại diện hợp pháp của pháp nhân và đóng dấu của pháp nhân là đại diện.

4.2. Trường hợp người yêu cầu đăng ký thế chấp là Quản tài viên thì Quản tài viên phải ký, ghi rõ họ tên, chức danh và đóng dấu vào Phiếu yêu cầu tại phần chữ ký, con dấu bên nhận thế chấp, đồng thời bên thế chấp và bên nhận thế chấp không phải ký và đóng dấu vào Phiếu yêu cầu.

2. LEGAL DOCUMENTS ISSUED IN 12/2019

2.1. Circular No. 32/2019/TT-NHNN amending and supplementing a number of articles of Circular no. 19/2013/TT-NHNN dated September 6th, 2013 of the Governor of the State Bank of Vietnam state on the purchase, sale and settlement of bad debts of Vietnam Asset Management Company

• Name of legal document: Circular No. 30/2019/TT-NHNN issued on 31/12/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 19/2013/TT-NHNN dated September 6th, 2013 of the Governor of the State Bank of Vietnam state on the purchase, sale and settlement of bad debts of Vietnam Asset Management Company (referred to as the “Circular No. 32/2019/TT-NHNN”).
• Effective date: 14/02/2020.

Some contents should be noted: amending and stipualting on restructure bad debts, Adjustment of repayment term and debt rescheduling.

Specifically, Clause 1 Article 1 of Circular No. 30/2019/TT-NHNN stipualtes: “Article 1. amending and supplementing a number of articles of Circular No. 19/2013/TT-NHNN dated September 6th, 2013 of the Governor of the State Bank of Vietnam state on the purchase, sale and settlement of bad debts of Vietnam Asset Management Company (referred to as the “Circular No. 19/2013/TT-NHNN”)

1. Clauses 2, 3 and 4 of Article 3 are amended and supplemented as follows:

“2. Restructure bad debts is the adjustment of repayment term, debt rescheduling; reduction of a part or total of interest amounts which are overdue for payment, violation fees and fines; adjustment of interest rate of bad debt.

3. Adjustment of repayment term means the approval to extend a period of repayment of part or all of the principal and/or interest of an agreed repayment term (including the case of no change in number of debt repayment term agreed upon) within the previous debt repayment term agreed in the credit agreement or loan agreement, agreement of offer of the trusteeship of credit extension, agreement of purchase, offer of the trusteeship purchasing corporate bonds with the repayment deadline remains unchanged.

4. Debt rescheduling means the approval to extend an additional period of repayment of principal and/or interest in excess of the previous debt payment term agreed in the credit agreement or loan agreement, agreement of offer of the trusteeship of credit extension, agreement of purchase, offer of the trusteeship purchasing corporate bonds.””

2.2. Circular No. 26/2019/TT-NHNN amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Vietnam

• Name of legal document: Circular No. 26/2019/TT-NHNN issued on 23/12/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Viet Nam (referred to as the “Circular No. 26/12/2019/TT-NHNN”).
• Effective date: 01/03/2020.

Some contents should be noted:

• Firstly, amending and supplementing the regulation on subjects to be granted PIN code[2].

Specifically, Clause 1 Article 15 of Circular No. 26/2019/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Vietnam

1. Article 4 is amended and supplemented as follows:

“Article 4. Subjects to be granted PIN code

Subjects to be granted with PIN code are organizations that issue card in accordance with provisions of laws on banking card activities.””

• Secondly, amending and supplementing the regulation on procedures for grant of PIN code.

Specifically, Clause 2 Article 15 of Circular No. 26/2019/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Vietnam

…

“2. Article 6 is amended and supplemented as follows:

Article 6. Procedures to grant PIN code

1. In case of having demand for grant of PIN code, the card issuer has to send directly or via postal service to the State Bank of Vietnam (Payment Department) or via the State Bank of Vietnam Portal requests for a BIN according to Form No. 01 issued together with this Regulation.
2. Within 5 working days after receiving a valid PIN application, the State Bank of Vietnam shall issue a decision to perform the grant of PIN code to the card issuer and notify in writing or via the State Bank of Vietnam Portal for card issuers.
3. The State Bank of Vietnam shall grant 01 unique PIN code to each card issuer that is subject to be granted PIN code.””

2.3. Circular No. 30/2019/TT-NHNN providing on performing the reserve requirement of credit institutions and foreign bank branches

• Name of legal document: Circular No. 30/2019/TT-NHNN issued on 27/12/2019 by the State Bank of Viet Nam providing on performing the reserve requirement of credit institutions and foreign bank branches (referred to as the “Circular No. 30/2019/TT-NHNN”).
• Effective date: 01/03/2020.

Some contents should be noted:

• Firstly, providing on credit institutions which do not perform the reserve requirement.

Specifically, Article 3 of Circular No. 30/2019/TT-NHNN stipulates:“Article 3. Credit institutions do not perform the reserve requirement

1. Credit institutions subject to special control: The time for failing to perform the reserve requirement shall be from the month following the month when credit institutions are decided by the State Bank of Vietnam (hereinafter called the State Bank) under the state of special control, by the end of the month, the credit institution shall be decided by the State Bank to terminate the special control.
2. Credit institutions have not yet opened their operations: The time for not performing the reserve requirement till the end of the month when the credit institutions commence their operation; Credit institutions shall notify in writing to the State Bank (Operation Center) of the operation opening date within 3 working days after the operation opening.
3. The credit institution is approved to dissolve or has a decision to open bankruptcy procedures or has a decision to revoke its license of a competent agency: The time for failing to perform the reserve requirement from the month following the month of the credit institution is approved to dissolve or the decided to open bankruptcy procedures, revoke the valid License; credit institutions that have decision on opening bankruptcy procedures shall send them to the State Bank (Operation Center) for deciding to open bankruptcy procedures within 3 working days after receiving this decision.”

• Secondly, providing on reserve requirement ratios, interest rates on reserve requirement deposits and deposits in excess of reserve requirement

Specifically, Article 6 of Circular No. 30/2019/TT-NHNN stipulates: “Article 6. reserve requirement ratios, interest rates on reserve requirement and deposits in excess of reserve requirement

1. Reserve requirement ratios for credit institutions

a) The Governor of the State Bank shall decide the reserve requirement ratio applicable to each type of credit institution and each type of deposit in accordance with the national monetary policy objectives in each period, except for reserve requirement ratio for Vietnam dong deposit to credit institutions prescribed at Point b of this Clause;

b) For credit institutions lending for agricultural and rural development supported by reserve requirement tool, the reserve requirement ratio for Vietnam dong deposits shall comply with the State Bank’s regulations. The State Bank guides the implementation of measures to manage monetary policy instruments to support credit institutions lending for agricultural and rural development.

2. Interest rates of reserve requirement deposits and deposits exceeding the reserve requirement of each type of credit institution and each type of deposit shall be decided by the Governor of the State Bank in accordance with the objectives of national monetary policy in each period.”

2.4. Circular No. 28/2019/TT-NHNN amending and supplementing a number of articles of Circular No. 19/2016/tt-nhnn dated on June 30, 2016 of the Governor of the State Bank of Vietnam on bank card operations

• Name of legal document: Circular No. 28/2019/TT-NHNN issued on 25/12/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 19/2016/tt-nhnn dated on June 30, 2016 of the Governor of the State Bank of Vietnam on bank card operations (referred to as the “Circular No. 28/2019/TT-NHNN”).
• Effective date: 01/04/2020.

Some contents should be noted:

·        Firstly, amending the provison on non-physical card and supplement the provisions on domestic transactions which present the card and make non-payment transactions at merchants.

Specifically, Clause 1 Article 1 of Circular No. 28/2019/TT-NHNN stipulates: “Article 1. amending and supplementing a number of articles of Circular No. 19/2016/tt-nhnn dated on June 30, 2016 of the Governor of the State Bank of Vietnam on bank card operations

1. Amending Clauses 7, 19, 23 and 25 and adding Clauses 8a and 8b to Article 3 as follows:

“7. Non-physical card is a card that does not exist in physical form, exists in electronic form and contains information on the card as prescribed in Article 12 of this Circular (Circular No. 19/2016/TT-NHNN) and is issued by the card issuer to the cardholder for transaction on internet environment, application program on mobile devices; excluding cases that physical card registered functions for transactions on the internet environment, application programs on mobile devices. Non-physical cards may be printed by physical card issuers upon the request of cardholders.”.

“8a. Domestic transaction which presents the card is a card transaction in which the card is issued by a card issuer in Vietnam and is used to make card transactions at Automated Teller Machine and point of sale terminals in Vietnam.”

“8b. A non-payment transaction at a merchant is the use of card and card information to pay for goods or services but in fact does not generate or sell goods and services.”

…. ”

• Sencondly, Amending and supplementing the regulation on subjects entitled to use cards.

Specifically, Clause 5 Article 1 of Circular No. 28/2019/TT-NHNN stipulates: “Article 1. Article 1. amending and supplementing a number of articles of Circular No. 19/2016/tt-nhnn dated on June 30, 2016 of the Governor of the State Bank of Vietnam on bank card operations

5. Amend Point b, Clause 3, Article 16 as follows:

“b) Persons aged between full 15 and under 18 who do not lose or have limited civil act capacity may use debit cards, credit cards and prepaid cards;”.”

2.5. Circular No. 27/2019/TT-NHNN amending and supplementing a number of articles of Circular No. 35/2014/TT-NHNN dated on November 20, 2014 of the Governor of the State Bank of Vietnam prescribing the fee for cash withdrawal via payment accounts at the State Bank Vietnam

• Name of legal document: Circular No. 27/2019/TT-NHNN issued on 25/12/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 35/2014/TT-NHNN dated on November 20, 2014 of the Governor of the State Bank of Vietnam prescribing the fee for cash withdrawal via payment accounts at the State Bank Vietnam (referred to as the “Circular No. 27/2019/TT-NHNN”).
• Effective date: 01/05/2020.

Some contents should be noted:

• Firstly, amending and supplementing the regulation on cash withdrawal fee at the State Bank.

Specifically, Clause 1 Article 1 stipulates: “Article 1. Amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Vietnam

1. Article 3 is amended and supplemented as follows:

“Article 3. Cash withdrawal fee at the State Bank

1. Credit institutions, branches of foreign banks are exempted from cash withdrawal in the month when the value of cash withdrawn via payment accounts is less than or equal to cash value which is not eligible for circulation are submitted to the State Bank where the account is opened.
2. Credit institutions, branches of foreign bank shall pay a fee of 0.005% of the positive difference in the month between the value of cash withdrawn via payment accounts minus the value of cash value which is not eligible for circulation are submitted to the State Bank where the account is opened.””

• Secondly, amending and supplementing the regulation on cash withdrawal fee at the State Bank.

Specifically, Clause 2 Article 1 stipulates: “Article 1. Amending and supplementing a number of articles of the Regulation on the grant, use and management of the code bank card issuers code issued together with Decision No. 38/2007/QD-NHNN dated October 30th, 2007 of the Governor of the State Bank of Vietnam

…

“2. To add Article 3a as follows:

Article 3a. Methods of collecting cash withdrawal fee

Every month, after calculating and collecting the cash withdrawal fee of credit institutions, foreign bank branches, Operation Centers, State Bank branches in centrally-affiliated cities and provinces, based on based on the receipts under the charge list is in the Appendix to this Circular, the accounting of cash withdrawal fee is in accordance with the provisions of the accounting account system issued in Circular No. 19/2015/TT-NHNN of October, 22nd, 2015 regulating the accounting system of the State Bank of Vietnam and the Operating Manual of the core banking system, budget accounting and system integration”.”

[1] “Representative office shall be an underlying unit of a foreign credit institution, other foreign organization having banking activities. A representative office shall not be permitted to conduct business activities in Vietnam.” (Clause 7 Article Circular No. 40/2011/TT-NHNN)

[2] Bank card issuers code

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/12/2019

1.1. Circular No. 16/2019/TT-NHNN regulations on the issuance of Sate Bank bills

• Name of legal document: Circular No. 16/2019/TT-NHNN issued on 22/10/2019 by the State Bank of Viet Nam regulations on the issuance of Sate Bank bills (referred to as the “Circular No. 16/2019/TT-NHNN”).

• Effective date: 09/12/2019.

Some content should be noted:

• Firstly, providing basic terms and conditions of the State Bank bills.

Specifically, Article 4 Circular No. 16/2019/TT-NHNN stipulates: “Article 4. Basic terms and conditions of the State Bank bills

1. Subjects: State Bank bills shall be issued to credit institutions having Vietnamese dong payment accounts at the State Bank.

2. Issuing currency: The State Bank bills are issued, accounted and paid in Vietnam dong.

3. Term: The term of the State Bank bills shall be decided by the State Bank and must not exceed 364 days.

4. Par value: The State Bank bills have par value of 100,000 dong (one hundred thousand dong) or multiple of 100,000 dong.

5. Form: State Bank bills shall be issued in book form.

6. Interest rate: The interest rate of the State Bank bills is decided by the State Bank, suitable to the movements of the monetary market and the objectives of operating monetary policy in each period.

7. The State Bank bills are issued at a price lower than the par value and shall be repaid in a lump sum equal to the par value on the date when the State Bank bills are due.”

• Secondly, providing on payment of State Bank bills

Specifically, Article 7 Circular No. 16/2019/TT-NHNN stipulates: “Article 7. Payment of the State Bank bills

1. Credit institutions shall pay for the purchase amount of bills issued by the State Bank in the mode of bidding in accordance with the State Bank’s regulations on open market operations.

2. Credit institutions shall pay for the purchase amount of bills issued by the State Bank issued in the following obligatory manner: Credit institutions must transfer money to buy State Bank bills into their accounts as designated by the State Bank on the date of payment of the State Bank bills. Credit institutions must ensure to fully write information on the money transfer order at the request of the State Bank.

3. On the date when the State Bank bills are due, the State Bank shall make payment of the amount equal to the par value of the State Bank bills to the credit institutions. In case the due date of a State Bank bills is a weekend or public holiday, the payment of the State Bank bills shall be made on the business day immediately following that holiday.”

1.2. Decree No. 88/2019/ND-CP penalties for administrative violations against regulations in the field of currency and banking

• Name of legal document: Decree No. 88/2019/ND-CP issued on 14/11/2019 by the Government penalties for administrative violations against regulations in the field of currency and banking (referred to as the “Decree No. 88/2019/ND-CP”).

• Effective date: 31/12/2019.

Some contents should be noted:

• Firstly, penalties for violations against regulations on offer and acceptance of the trusteeship.

Specifically, Article 15 of Decree No. 88/2019/ND-CP stipulates: “Article 15. Violation against regulations on offer and acceptance of the trusteeship

1. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed for one of the following violations:

2. a) Offering and accepting of the trusteeship improperly with subjects or scope as prescribed by law;

3. b) Making trusteeship contracts in contravention of law provisions.

4. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed for acts of offering and accepting of the trusteeship failing to comply with the principles of trusteeship in accordance with law.

5. Additional sanctioning forms:

Suspension of trusteeship operations of credit institutions and branches of foreign banks for a period from 01 month to 03 months for acts of violations specified in this Article.

4. Remedies:

5. a) Forcible return/withdrawal of consigned assets to the trusteeship or, for violations specified in this Article;

6. b) Proposing or requesting the competent authority to consider and apply the suspension measure for between 01 month and 03 months or dismissing the post of management, administration or control; It is forbidden to hold administrative, executive or controlling posts at credit institutions or branches of foreign banks for violating individuals and / or individuals responsible for the violations specified in this Article.

Requesting credit institutions and branches of foreign banks to dismiss and implement other handling measures in accordance with the provisions of law on violating individuals under the jurisdiction of credit institutions and / or branches of foreign banks.”

• Secondly, penalties for violations against internal regulations on money laundering prevention.

Specifically, Article 40 of Decree No. 88/2019/ND-CP stipulates: “Article 40. Violation of regulations on internal regulations on prevention of money laundering

A fine of from VND 60,000,000 to VND 100,000,000 shall be imposed for any of the following violations:

1. Failing to promulgate a process to manage risks of transactions related to new technologies as prescribed in Article 15 of the Law on prevention of money laundering;

2. Failing to formulate regulations on customer classification based on risks as prescribed in Clause 1, Article 12 of the Law on prevention of money laundering;

3. Failure to promulgate internal regulations or promulgating internal regulations which lack one or some contents specified in Article 20 of the Law on prevention of money laundering.”

2.       LEGAL DOCUMENTS ISSUED IN 11/2019

2.1. Decision No. 2307/QĐ-NHNN dated on 05/11/2019 regarding the announcement of administrative procedures for amendments and supplements to the field of foreign exchange activities at the one-door department under the management function of the State bank of Viet Nam

• Name of legal document: Decision No. 2307/QĐ-NHNN issued on 05/11/2019 by the Governor of the State Bank of Viet Nam regarding the announcement of administrative procedures for amendments and supplements to the field of foreign exchange activities at the one-door department under the management function of the State bank of Viet Nam (referred to as the “Decision No. 2052/QD-NHNN”).

• Effective date: 25/11/2019.

The content should be noted: Proving procedures for approval of registration of foreign currency payment agent of credit institutions and economic organizations.

Specifically, subsection 3, Section 3, Part B of Decision No. 2307/QD-NHNN stipulates: “B. Administrative procedures at the State Bank branch in provincial government

…

1. Administrative procedures at the State Bank branches in the provincial government

2. Procedures for approving the direct reception and payment of foreign currencies by economic organizations

– The order of execution:

+ Step 1: Economic organizations send 01 (one) set of dossier to the State Bank branch in the provincial government where the economic organization’s headquarters is located.

+ Step 2: In case the dossier is incomplete and invalid, within 10 (ten) working days from the date of receiving the dossier, the State Bank branch in the provincial government shall issue a document request additional dossier.

+ Step 3: Within 30 (thirty) working days from the date of receipt of a complete and valid dossier, the State Bank branches in the provincial government where the economic organization’s headquarters is located considers, issuing written approval of direct reception and payment of foreign currencies. In case of refusal, the State Bank branch in the provincial government where the economic organization is headquartered shall notify in writing the reason.

– How to perform:

+ Headquarters of administrative agencies (directly at the One-stop Section);

+ or postal service.

– Dossier components:

+ Application for approval of direct foreign currency receipt and payment foreign currencies (according to the form in Appendix 01 of Circular No. 34/2015/TT-NHNN);

+ A copy of documents proving the organization is legally established and operated: Certificate of enterprise registration, certificate of investment registration or other equivalent documents as prescribed by law;

+ A copy and a Vietnamese translation copy of the foreign currency receipt and payment contract signed with a foreign partner, including the following main contents:

(i) Names, addresses, representatives and legal status of the parties;

(ii) The account number, the bank where the specialized foreign currency account is opened of the head quarter of the economic organization;

(iii) Rights and obligations of contracting parties;

(iv) Principles of applying exchange rates in case the beneficiary wishes to receive Vietnam dong (if any);

(v) Commission fees;

(vi) Other agreements (regarding liability due to breach of contract, term of contract, termination of contract ahead of time, settlement of disputes arising and other agreements in accordance with law);

+ Plan to perform foreign currency receipt and payment of foreign currencies, including the following main contents:

(i) Operating area and expected human resources;

(ii) Content, method, process of receiving and paying foreign currencies;

(iii) Estimated turnover, income from foreign currency receipt and payment activities;

+ A copy and a the Vietnamese translation copy of a written document issued by a foreign competent authority determining the legal status of the foreign partner.

+ Plan to perform foreign currency receipt and payment of foreign currencies, including the following main contents:

(i) Operating area and expected human resources;

(ii) Content, method, process of receiving and paying foreign currencies;

(iii) Estimated turnover, income from foreign currency receipt and payment activities;

+ A copy and a the Vietnamese translation copy of a written document issued by a foreign competent authority determining the legal status of the foreign partner.

– Number of dosser: 01 set

– Handling time: 30 days from the day State Bank branches in provinces, cities receive complete and valid dossier.

– Subjects implementing administrative procedures: Economic organizations.

– Implementing agency: State Bank branch in province, city.

– Results of the implementation of administrative procedures: Written approval of direct receipt and payment of foreign currencies.

– Fees: None

– Name of the application form, declaration form: Application for approval of direct receipt and payment of foreign currencies (Appendix 01 of Circular No. 34/2015/TT-NHNN).

– Requirements and conditions for implementation of administrative procedures:

+ Having contracts with foreign partners on services of receiving and paying foreign currencies;

+ There is a plan to provide foreign currency receipt and payment service signed by a legal representative.

Legal grounds of administrative procedures:

+ Decree No. 89/2016/ND-CP dated July 1st, 2016 of the Government on requirements applicable to business entities acting as currency exchange agents or providing foreign currency receipt and payment services;

+ Decree No. 16/2019/ND-CP dated February 1st, 2019 amending and supplementing decrees on business conditions under the state management of the State bank of Vietnam;

+ Decision No. 170/1999/QD-TTg of August 19th, 1999 of the Prime Minister on encouraging money transfer of overseas Vietnamese;

+ Circular No. 15/2019/TT-NHNN dated October 11th, 2019 of the State Bank of Vietnam amending and supplementing a number of legislative documents on dossiers and administrative procedures in the field of foreign exchange management;

+ Circular No. 34/2015/TT-NHNN dated December 31st, 2015 of the State Bank of Vietnam guidelines for the provision of foreign currency receipt and payment services;

+ Circular No. 11/2016/TT-NHNN dated June 29th, 2016 of the State Bank of Vietnam amendments to a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks.”

2.2. Decree No. 86/2019/NĐ-CP dated on 14/11/2019 prescribing legal capital of credit institutions and foreign bank branches

• Name of legal document: Decree No. 86/2019/NĐ-CP issued on 14/11/2019 by the Gorverment prescribing legal capital of credit institutions and foreign bank branches (referred to as the “Decree No. 86/2019/NĐ-CP”).

• Effective date: 15/01/2020.

Some content should be noted:

• Firstly, regulating levels of legal capital.

Specifically, Clause 1, Clause 2, Clause 3, Clause 4 Article 2 stipulates: “Article 2. Levels of legal capital

1. Commercial banks: 3,000 billion dong.

2. Policy banks: 5,000 billion dong.

3. Cooperative banks: 3,000 billion dong.

4. Foreign bank branches: 15 million U.S. dollars (USD).”

• Secondly, regulating on transitional provisions for credit institutions (except people’s credit funds) or foreign bank branches licensed regarding to legal capital.

Specifically, Clause 1 Article 3 stipulates: “Article 3. Transitional provisions

1. Credit institutions (except people’s credit funds) or foreign bank branches licensed before the entry into force of this Decree must ensure that the minimum amount of their actually contributed or allocated charter capital is at least equal to legal capital levels stated in Article 2 herein from the effective date of this Decree.”  

2.3. Circular No. 24/2019/TT-NHNN provisions on refinanced loanS in the form of re-lending according to credit dossier for credit institutions

• Name of legal document: Circular No. 24/2019/TT-NHNN issued on 18/11/2019 by the State Bank of Viet Nam provisions on refinanced loans in the form of -re-lending according to credit dossier for credit institutions (referred to as the “Circular No. 24/2019/TT-NHNN”).

• Effective date: 18/01/2020.

Some content should be noted:

• Firstly, proving interest rate.

Specifically, Article 6 of Circular No. 24/2019/TT-NHNN stipulates: “Article 6. Interest rate

1. The interest rate of refinanced loan, extension of refinanced loan in the form of re-lending according to credit dossier is the interest rate of refinanced loan announced by the State Bank in each period at the time when the refinanced loan amount is disbursed, extended.

2. Overdue interest on the refinanced loan principal equals 150% of the interest rate applicable to refinanced loan.”

• Secondly, providing terms of refinanced loan and extension of refinanced loan.

Specifically, Article 7 of Circular No. 24/2019/TT-NHNN stipulates: “Article 7. Term of refinanced loan, extension of refinanced loan

1. The term of refinanced loan in the form of re-lending according to the credit dossier shall be considered and decided by the State Bank and must be less than 12 months.

2. Each extension period must not exceed the term of refinanced loan; total refinanced loan time and refinanced loan extension must not exceed 12 months.”

2.4. Decision No. 2415/QĐ-NHNN dated on 18/11/2019 regarding the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions and branches of foreign banks under the provisions of Circular 07/2014/TT-NHNN March 17, 2014

• Name of legal document: Decision No. 2415/QĐ-NHNN issued on 18/11/2019 by the Governor of the State Bank of Viet Nam regarding the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions and branches of foreign banks under the provisions of Circular 07/2014/TT-NHNN March 17, 2014 (referred to as the “Decision No. 2052/QD-NHNN”).

• Effective date: 19/11/2019.

Some content should be noted:

• Firstly, regulating the maximum interest rate applicable to VND deposits of entities (except for credit institutions, branches of foreign banks) and individuals at credit institutions and foreign bank branches as prescribed at Circular No. 07/2014/TT-NHNN of March 17, 2014.

Specifically, Article 1 Decision No. 2052/QD-NHNN stipulates: “Article 1. The maximum interest rate applicable to VND deposits of entities (except for credit institutions, branches of foreign banks) and individuals at credit institutions and foreign bank branches as prescribed at Circular No. 07/2014/TT-NHNN of March 17, 2014, as follows:

1. The maximum interest rate applicable to demand deposits and deposits with terms of less than 1 month is 0.8%/year.

2. The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months is 5.0%/year; particularly for People’s Credit Funds and Microfinance Institutions, the maximum interest rate applicable to deposits with a term of between 1 month and under 6 months shall be 5.5%/year.”

• Secondly, the transitional provisions for interest rate applicable to vnd deposits with term of entities and individuals at credit institutions and branches of foreign banks arising before the Decision No. 2415/QD-NHNN takes effect.

Specifically, Clause 2, Article 2 of Decision No. 2415/QD-NHNN stipulates:“Article 2

….

2. For interest rate applicable to VND deposits with term of entities and individuals at credit institutions and branches of foreign banks arising before the effective date of this Decision, implemented for until the expiry date; if upon the expiry of the agreed time limit, entities or individuals fail to come to deposit, the credit institutions or branches of foreign banks shall apply the interest rates applicable to deposits according to the provisions of this Decision.”

2.5. Decision No. 2416/QĐ-NHNN dated on 18/11/2019 regarding the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions and branches of foreign banks under the provisions of Circular 07/2014/TT-NHNN March 17, 2014

• Name of legal document: Decision No. 2415/QĐ-NHNN issued on 18/11/2019 by the Governor of the State Bank of Viet Nam regarding the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions and branches of foreign banks under the provisions of Circular 07/2014/TT-NHNN March 17, 2014 (referred to as the “Decision No. 2052/QD-NHNN”).

• Effective date: 19/11/2019.

The content should be noted: Providing the interest rate on short-term loan denominated in Vietnamese dong prescribed in Clause 2, Article 13 of Circular No. 39/2016/TT-NHNN dated December 30, 2016.

Specifically, Article 1 of Decision No. 2052/QD-NHNN stipulates: “Article 1. Maximum interest rate on short-term loans in Vietnam Dong as prescribed in Clause 2, Article 13 of Circular No. 39/2016 / TT -NHNN dated December 30, 2016 as follows:

1. Credit institutions and branches of foreign banks (except for People’s credit funds and microfinance institutions), which apply the maximum interest rate on short-term loan in Vietnam dong, shall be 6.0%/year.

2. People’s credit funds and microfinance institutions shall apply the maximum interest rate on short-term loan in Vietnam dong at 7.0%/year.”

2.6. Circular No. 22/2019/TT-NHNN regulations on limitations and ratio of security assurance in operations of banks and branches of foreign banks

• Name of legal document: Circular No. 22/2019/TT-NHNN issued on 15/11/2019 by the State Bank of Viet Nam regulations on limitations and ratio of security assurance in operations of banks and branches of foreign banks (referred to as the “Circular No. 22/2019/TT-NHNN”).

• Effective date: 01/01/2020.

Some content should be noted:

• Firstly, regulating restrictions and limits on credit extension.

Specifically, Article 10 of Circular No. 22/2019/TT-NHNN stipulates: “Article 10. Restrictions and limits on credit extension

1. Banks, branches of foreign banks comply with the regulations on cases which are not granted credit extension, which are credit restriction and credit limit according to Article 126, Article 127 and Article 128 of the Law on Credit Institutions (amended and supplemented).

2. Banks, branches of foreign banks shall base themselves on the own capital to be determined according to the provisions of Clause 3 of this Article at the end of the latest working day to determine credit extension restrictions and limits according to the provisions of Clause 1 this.

3. The own capital is determined as follows:

a) For banks and/or branches of foreign banks that implement the minimum capital adequacy ratio in accordance with this Circular, banks using separate equity capital, branches of foreign banks shall use their own capital in accordance with regulations at Article 9 of this Circular.

b) For banks, branches of foreign banks implement capital adequacy ratio according to Circular 41/2016/TT-NHNN, banks, branches of foreign banks use own capital as prescribed in Circular No. 41/2016/TT-NHNN.”

• Secondly, providing on management of credit extension.

Specifically, Article 13 of Circular No. 22/2019/TT-NHNN stipulates: “Article 13. Management of credit extension

1. Banks and branches of foreign banks shall manage credit extension activities according to the provisions of law and the internal regulations on credit extension and loan management to ensure the use of loan capital for the right purposes provided at Clause 1, Article 4 of this Circular.

2. Banks and branches of foreign banks must prepare and update immediately upon any change of the list of founding shareholders, major shareholders, capital contributing members, members of the Board of Directors and members of the Board of members, members of the Supervisory Board, executives and other management titles in accordance with the laws, the organization and operation charter of the bank and related persons of these people. This list must be made public throughout the system of banks, branches of foreign banks and sent directly or via postal service to the State Bank as prescribed at Points a and b, Clause 6, Article 4 of this Circular.

3. Banks and branches of foreign banks must report to:

a) The General Meeting of Shareholders, the Members’ General Meeting of credit extensions to the subjects specified in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented) arising until the time of taking the number whether to convene a General Meeting of Shareholders, a General Meeting of Members;

b) Owners, capital contributors, managers, executives when giving credit to subjects defined in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented) );

c) The State Bank shall comply with the State Bank’s regulations on the regime of statistical reporting of credit extension to subjects defined in Clause 1, Article 127 of the Law on Credit Institutions (amended and supplemented).

4. Credit extension to subsidiaries, associated companies and entities listed in Clause 2 of this Article (except for cases where credit is not provided for in Article 126 of the Law on Credit Institutions (already amended, supplemented)) must be approved by the Board of Directors, Board of Members (for banks), General Director/Director (for branches of foreign banks), except for credit extension under the authority of the General Meeting of Shareholders. The Supervisory Board must supervise credit approval for these subjects.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/11/2019

1.1. Circular No. 37/2016/TT-NHNN management, operation and use of the National Interbank Electronic Payment System

• Name of legal document: Circular No. 37/2016/TT-NHNN issued on 30/12/2016 by the State Bank of Viet Nam management, operation and use of the National Interbank Electronic Payment System (referred to as the “Circular No. 37/2016/TT-NHNN”).
• Effective date: 01/11/2019.

Some contents should be noted:

• Firstly, primary modules and functions of the National Interbank Electronic Payment System.

Specifically, Article 3 of Circular No. 37/2016/TT-NHNN stipulates: “Article 3. Primary modules and functions of the NIEPS[1]

1. NIEPS is an integrated system that consists of: NPSC, BNPSC, software installed in participants and affiliated participants.
2. Processing modules include: high-value payment module, foreign currency payment module, low-value payment module, checking account processing module.
3. The high-value payment module is meant to process real-time gross settlement for payment orders in VND using high-value payment services.
4. The foreign currency payment module is meant to process real-time gross settlement for payment orders in foreign currencies using foreign currency payment services.
5. The low-value payment module is meant to process low-value payment orders using low-value payment services.
6. The checking account processing module is meant to inspect and process high-value payment orders, foreign currency payment orders, processing results of clearing and net settlement from other systems.”

• Secondly, working time of the NIEPS

Specifically, Article 9 of Circular No. 37/2016/TT-NHNN stipulates: “Article 9. Working time of the NIEPS

1. Working time of the NIEPS:

a) Starting time: 8:00 of working days;

b) Time to stop receiving payment orders:

– For low-value payment orders: 16:00 of normal working days; 17:00 of the last 02 working days of the month;

– For high-value payment orders and foreign currency payment orders: 17:00 of normal working days; 17:45 of the last 02 working days of the month;

c) Time to perform end-of-day tasks (data comparison and verification with the NPSC): 17:15 of normal working days; 18:00 of the last 02 working days of the month.

2. In the cases where the times mentioned in Clause 1 of this Article are changed, the Governor of the State bank shall issue a decision and send written notifications to the participants at least 30 days before the effective date of such decision, except for the case specified in Clause 3 of this Article.

3. In the cases where the times mentioned in Clause 1 of this Article are changed while annual statements are being prepared or during public holidays, the Governor of the State bank shall issue a decision and the NIEPS operator shall send written notifications to the participants and make an announcement on the web portal of the State bank at least 05 days before the effective date of such decision.”

1.2. Decision No. 2109/QD-NHNN on the announcement of administrative procedures for disciplining of field of payment activities at the One-door Department under the management function of the State Bank of Viet Nam

• Name of legal document: Decision No. 2109/QD-NHNN issued on 09/10/2019 by the State Bank of Viet Nam on the announcement of administrative procedures for disciplining of field of payment activities at the One-door Department under the management function of the State Bank of Viet Nam (referred to as the “Decision No. 2109/QD-NHNN”).
• Effective date: 01/11/2019.

The content should be noted: Issued together with Decision No. 2109/QD-NHNN are the administrative procedures for disciplining of field of payment activities at the One-door Department under the management function of the State Bank of Viet Nam.

Specifically, some procedures as below:

1.3. Circular No. 15/2019/TT-NHNN amending and supplementing a number of legislative documents on dossiers and administrative procedures in the field of foreign exchange management

• Name of legal document: Circular No. 15/2019/TT-NHNN issued on 11/10/2019 by the State Bank of Viet Nam amending and supplementing a number of legislative documents on dossiers and administrative procedures in the field of foreign exchange management (referred to as the “Circular No. 15/2019/TT-NHNN”).
• Effective date: 25/11/2019.

The content should be noted: Amending provisions on activities of foreign exchange agents.

Specifically, Clause 1 Article 1 Circular No. 15.2019/TT-NHNN stipulates: “Article 1. Amending, supplementing and abolishing a number of articles of the Regulation on foreign exchange agent promulgated together with the Decision No. 21/2008/QD-NHNN of July 11, 2008 Vietnam issued by the Governor of the State Bank of Viet Nam

1. Adding Clause 3 to Article 4[2] (amended and supplemented by Clause 3, Article 2 of Circular No. 11/2016/TT-NHNN of June 29, 2016 amending and supplementing a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks (hereinafter referred to as Circular No. 11/2016/TT-NHNN) as follows:

“3. Economic organizations may negotiate with authorized credit institutions in agency contracts to place foreign currency exchange agents at one or more locations in the locality where the economic organizations are headquartered or branches.””

2. LEGAL DOCUMENTS ISSUED IN 10/2019

2.1. Decision No. 2052/QD-NHNN on the announcement of  standardized administrative procedures in the field of credit and payment activities under the management function of the State Bank of Viet Nam

• Name of legal document: Decision No. 2052/QD-NHNN issued on 07/10/2019 by the State Bank of Viet Nam on the announcement of standardized administrative procedures in the field of credit and payment activities under the management function of the State Bank of Viet Nam (referred to as the “Decision No. 2052/QD-NHNN”).
• Effective date: 07/10/2019.

The content should be noted: Issued together with Decision No. 2052 / QD-NHNN is the List of standardized administrative procedures in scope of the management functions of the State Bank of Viet Nam.

Specifically, Section 1, Part I of Decision No. 2052/QD-NHNN provides the following:

“PART I.

LIST OF ADMINISTRATIVE PROCEDURES

1. List of standardized administrative procedures in scope of the management functions of the State Bank of Viet Nam

”

2.2. Circular No. 16/2019/TT-NHNN regulations on the issuance of Sate Bank bills

• Name of legal document: Circular No. 16/2019/TT-NHNN issued on 22/10/2019 by the State Bank of Viet Nam regulations on the issuance of Sate Bank bills (referred to as the “Circular No. 16/2019/TT-NHNN”).
• Effective date: 09/12/2019.

Some content should be noted:

• Firstly, providing basic terms and conditions of the State Bank bills.

Specifically, Article 4 Circular No. 16/2019/TT-NHNN stipulates: “Article 4. Basic terms and conditions of the State Bank bills

1. Subjects: State Bank bills shall be issued to credit institutions having Vietnamese dong payment accounts at the State Bank.
2. Issuing currency: The State Bank bills are issued, accounted and paid in Vietnam dong.
3. Term: The term of the State Bank bills shall be decided by the State Bank and must not exceed 364 days.
4. Par value: The State Bank bills have par value of 100,000 dong (one hundred thousand dong) or multiple of 100,000 dong.
5. Form: State Bank bills shall be issued in book form.
6. Interest rate: The interest rate of the State Bank bills is decided by the State Bank, suitable to the movements of the monetary market and the objectives of operating monetary policy in each period.
7. The State Bank bills are issued at a price lower than the par value and shall be repaid in a lump sum equal to the par value on the date when the State Bank bills are due.”

• Secondly, providing on payment of State Bank bills

Specifically, Article 7 Circular No. 16/2019/TT-NHNN stipulates: “Article 7. Payment of the State Bank bills

1. Credit institutions shall pay for the purchase amount of bills issued by the State Bank in the mode of bidding in accordance with the State Bank’s regulations on open market operations.
2. Credit institutions shall pay for the purchase amount of bills issued by the State Bank issued in the following obligatory manner: Credit institutions must transfer money to buy State Bank bills into their accounts as designated by the State Bank on the date of payment of the State Bank bills. Credit institutions must ensure to fully write information on the money transfer order at the request of the State Bank.
3. On the date when the State Bank bills are due, the State Bank shall make payment of the amount equal to the par value of the State Bank bills to the credit institutions. In case the due date of a State Bank bills is a weekend or public holiday, the payment of the State Bank bills shall be made on the business day immediately following that holiday.”

[1] The National Interbank Electronic Payment System

[2] “Article 4. Foreign exchange agent activities

1. Foreign exchange agents are only allowed to exchange Vietnam dong for individual’s foreign currency cash but are not allowed to exchange foreign currency cash for Vietnam dong or other foreign currencies, except for cases prescribed in clause 2 of this Article.
2. Foreign exchange agents located at isolated areas of international checkpoints are allowed to exchange foreign currency cash for Vietnam dong with individuals having passports granted by competent authorities of their countries under Article 8 of this Regulation.”