1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 11/2024

1.1. Circular No. 46/2024/TT-NHNN regulating the application of interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches

• Name of legal document: Circular No. 46/2024/TT-NHNN issued on 30/09/2024 by the State Bank of Vietnam regulating the application of interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches (referred to as the “Circular No. 46/2024/TT-NHNN”).
• Effective date: 20/11/2024.

The content should be noted: Stipulating interest rates on deposits in US dollars.

Specifically, Article 3 of Circular No. 46/2024/TT-NHNN stipulates: “Article 3. Interest rates

1. Credit institutions shall apply interest rates on deposits in US dollars not exceeding the maximum interest rates decided by the Governor of the State Bank of Vietnam from time to time for:a) Deposits of organizations.b) Deposits of individuals.
2. The maximum interest rates on deposits in US dollars prescribed in this Circular include promotional expenses in all forms, applied to the method of paying interest at the end of the term and other interest payment methods converted according to the method of paying interest at the end of the term.
3. Credit institutions shall publicly post interest rates on deposits in US dollars at legal transaction locations within the credit institution’s network of operations and post them on the credit institution’s website (if any). When receiving deposits, credit institutions shall not conduct promotions in any form (in cash, interest rates and other forms) that are not in accordance with the provisions of law.”

1.2. Circular No. 47/2024/TT-NHNN amendment of clause 3, Article 3 of Circular No. 04/2022/TT-NHNN dated june 16, 2022 of the Governor of the State bank of Vietnam regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches

• Name of legal document: Circular No. 47/2024/TT-NHNN issued on 30/09/2024 by the State Bank of Vietnam amendment of clause 3, Article 3 of Circular No. 04/2022/TT-NHNN dated june 16, 2022 of the Governor of the State bank of Vietnam regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches (referred to as the “Circular No. 47/2024/TT-NHNN”).
• Effective date: 20/11/2024.

The content should be noted: Amending forms of deposits eligible for premature withdrawal.

Specifically, Article 1 of Circular No. 47/2024/TT-NHNN stipulates: “Article 1. Amend Clause 3, Article 3 of Circular No. 04/2022/TT-NHNN[1] as follows:

“3. Deposit certificates issued by credit institutions.””

2.       LEGAL DOCUMENTS ARE ISSUED IN 10/2024

2.1. Circular No. 49/2024/TT-NHNN amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN dated september 30, 2022 of the Governor of the State bank of Vietnam prescribing bank guarantee

• Name of legal document: Circular No. 49/2024/TT-NHNN issued on 25/10/2024 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN dated september 30, 2022 of the Governor of the State bank of Vietnam prescribing bank guarantee (referred to as the “Circular No. 49/2024/TT-NHNN”).
• Effective date: 10/12/2024.

The content should be noted: Amending forms of deposits eligible for premature withdrawal.

Specifically, Clause 3 Article 1 of Circular No. 49/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN

…

3. Amending and supplementing Article 13 as follows:

“Article 13. Off-plan housing guarantee

1. Commercial banks and foreign bank branches shall consider and decide to grant guarantees to investors when:
2. a) Investors meet all requirements specified in Article 11 of this Circular (except for cases where commercial banks and foreign bank branches provide guarantees for investors on the basis of counter-guarantees);
3. b) Investors have received a document from the provincial-level state management agency for real estate business responding to investors about housing that is eligible for sale or lease-purchase.

…

6. The maximum guarantee amount for each buyer is equal to the total amount the investor is allowed to receive in advance from the buyer as prescribed in Article 25 of the Law on Real Estate Business and other amounts (if any) under the house purchase or hire-purchase contract.

…””

[1] Article 3 of Circular No. 04/2022/TT-NHNN: “Article 3. Forms of deposits eligible for premature withdrawal

1. Time savings deposits 2. Time deposits. 3. Deposit certificates, bills, treasury bills, and bonds issued by credit institutions. 4. Other forms of receiving time deposits according to the Law on Credit Institutions of Vietnam.”

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 08&09/2024

1.1. Circular No. 08/2024/TT-NHNN regulations on the management, operation and use of the National Interbank Electronic Payment System

• Name of legal document: Circular No. 08/2024/TT-NHNN issued on 25/06/2024 by the State Bank of Vietnam regulations on the management, operation and use of the National Interbank Electronic Payment System (referred to as the “Circular No. 08/2024/TT-NHNN”).
• Effective date: 15/08/2024.

The content should be noted: Stipulating on issuance, management and use of electronic signature certificates and electronic signatures participating in the National Interbank Electronic Payment System.

Specifically, Article 8 of Circular No. 08/2024/TT-NHNN stipulates: “Article 8. Issuance, management and use of electronic signature certificates and electronic signatures participating in the National Interbank Electronic Payment System

1. Electronic signatures are divided into 3 types:a) Electronic signature of the person making the order;b) Electronic signature of the person controlling the order;c) Electronic signature of the person approving the order.
2. The organization of decentralization of order makers, order controllers and order approvers at members and member units is regulated by the unit’s competent person, ensuring the principle that the person making the order, the person controlling the order, and the person approving the order are independent.
3. The State Bank issues an electronic signature certificate to the the person approving the order and an electronic signature certificate to authenticate the connection (connection certificate) between the software installed at member units and member units with the National Processing Center.
4. The issuance, management, and use of electronic signature certificates for the person approving the order and electronic signature certificates to authenticate connection to participate in the National Interbank Electronic Payment System shall comply with the regulations of the State Bank.”

1.2. Circular No. 32/2024/TT-NHNN operational network of commercial banks

• Name of legal document: Circular No. 32/2024/TT-NHNN issued on 30/06/2024 by the State Bank of Vietnam operational network of commercial banks (referred to as the “Circular No. 30/2024/TT-NHNN”).
• Effective date: 15/08/2024.

The content should be noted: Stipulating on permissible number of branches.

Specifically, Article 7, 8 of Circular No. 32/2024/TT-NHNN stipulates:

“Article 7. Formula for determining maximum permissible number of branches and transaction offices

1. The number of branches and transaction offices of a commercial bank may establish shall be determined using the formula below:

300 billion VND x N1 + 100 billion VND x M1 + 50 billion VND x N2 + 20 billion VND x M2 < C

Where:

– C is the real value of the charter capital of the commercial bank according to Point a Clause 1 Article 6 or Point a Clause 2 Article 6 of this Circular.

– N1 is the number of branches established and pending approval for establishment in the urban areas of Hanoi City and Ho Chi Minh City.

– N2 is the number of branches established and pending approval for establishment in the suburban areas of Hanoi City, Ho Chi Minh City, and provinces and centrally affiliated cities.

– M1 is the number of transaction offices established and pending approval for establishment in the urban areas of Hanoi City and Ho Chi Minh City.

– M2 is the number of transaction offices established or pending approval for establishment in the suburban areas of Hanoi City, Ho Chi Minh City, and provinces and centrally affiliated cities.

2. The determination of the locations of branches and transaction offices established and pending approval for establishment in areas prescribed in Points N1, N2, M1, and M2 in Clause 1 of this Article shall be based on the administrative boundary areas at the time of the request and the time of the approval.”

“Article 8. Maximum permissible number of branches

Aside from meeting the requirements prescribed in Article 7 of this Circular, commercial banks shall also meet the following requirements:

A commercial bank may establish up to 10 branches in each urban area of Hanoi City or Ho Chi Minh City.

A commercial bank operating for less than 12 months from its opening date to the time of the request may establish no more than 3 branches. Such branches shall not be established in the same province or centrally affiliated city in a fiscal year.

A commercial bank operating for 12 months or more from its opening date to the time of the request may establish no more than 5 branches. The number of branches in rural areas shall account for at least 50% of the total branches established in a fiscal year.

Aside from the quantity prescribed in Clause 3 of this Article, commercial banks that have completed the procedure for voluntary termination of branches in urban areas of Hanoi City or Ho Chi Minh City may establish a number of branches equivalent to the number of terminated branches in other provinces and centrally affiliated cities.”

1.3. Decision No. 1640/QĐ-NHNN on the announcement of newly issued, amended and supplemented administrative procedures in the field of bank establishment and operation performed at the One-stop Department under the management scope of the State Bank of Vietnam

• Name of legal document: Decision No. 1640/QĐ-NHNN issued on 26/07/2024 by the State Bank of Vietnam on the announcement of newly issued, amended and supplemented administrative procedures in the field of bank establishment and operation performed at the One-stop Department under the management scope of the State Bank of Vietnam (referred to as the “Decision No. 1640/QĐ-NHNN”).
• Effective date: 15/08/2024.

The content should be noted: Stipulating on newly issued, amended, supplemented and replaced administrative procedures in the field of banking establishment and operation under the management scope of the State Bank of Vietnam.

Specifically, Decision No. 1640/QĐ-NHNN stipulates:

“NEWLY ISSUED, AMENDED, SUPPLEMENTED, REPLACED ADMINISTRATIVE PROCEDURES IN THE FIELD OF ESTABLISHMENT AND OPERATION OF BANKS UNDER THE MANAGEMENT FUNCTION OF THE STATE BANK OF VIETNAM

(Issued with Decision 1640/QD-NHNN dated July 26, 2024 of the Governor of the State Bank of Vietnam)

PART I.

LIST OF ADMINISTRATIVE PROCEDURES

1. List of newly issued administrative procedures implemented at the One-stop Department under the scope and management function of the State Bank of Vietnam

2. List of administrative procedures amended and supplemented within the scope of management functions of the State Bank

3. List of alternative administrative procedures under the management scope of the State Bank of Vietnam

”

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 07/2024

1.1. Circular No. 22/2023/TT-NHNN amendments to Circular No. 41/2016/TT-NHNN dated December 30, 2016 of Governor of State Bank of Vietnam prescribing prudential ratios for operations of banks and foreign bank branches

• Name of legal document: Circular No. 22/2023/TT-NHNN issued on 29/12/2023 by the State Bank of Vietnam amendments to Circular No. 41/2016/TT-NHNNdated December 30, 2016 of Governor of State Bank of Vietnam prescribing prudential ratios for operations of banks and foreign bank branches (referred to as the “Circular No. 22/2023/TT-NHNN”).
• Effective date: 01/07/2024.

The content should be noted: Stipulating on the CRW applied to home mortgage loans.

Specifically, Clause 8 of Article 1 of Circular No. 22/2023/TT-NHNN stipulates: “Article 1. Amendments to Circular No. 41/2016/TT-NHNN

… 8. Point b clause 11 Article 9 is amended as follows:

“b) The CRW applied to home mortgage loans relative to the LTV ratio and DSC ratio is as follows:

(i) As for loans for purchasing of social home or home under the Government’s support programs/projects:

(ii) As for loans other than those specified in point b(i) clause 11 of this Article:

””

1.2. Circular No. 07/2024/TT-NHNN amendments and supplements a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam regulating lending activities of credit institutions and foreign bank branches to customers

• Name of legal document: Circular No. 07/2024/TT-NHNN issued on 21/06/2024 by the State Bank of Vietnam amendments and supplements a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam regulating lending activities of credit institutions and foreign bank branches to customers (referred to as the “Circular No. 12/2024/TT-NHNN”).
• Effective date: 01/07/2024.

The content should be noted: Stipulating on details of payment agent operation.

Specifically, Article 1 of Circular No. 07/TT-NHNN stipulates: “Article 4. Details of payment agent operation

The principal is entitled to appoint the Agent to perform one or more professional operations below:

1. Receive applications for opening of checking accounts, check and verify client identification information so as to send it to the principal and instruct clients to use their checking accounts.
2. Receive applications for issuance of bank cards, check and verify client identification information so as to send it to the principal and instruct clients to use their bank cards.
3. Receive clients’ requests for payment services, prepare, sign, control and process clients’ transaction documents, transfer clients’ transaction information to the principal, receive cash from clients or provide cash to clients in order to carry out the following transactions:a) Depositing/withdrawing cash into/from clients’ checking accounts opened at the principal;b) Depositing/withdrawing cash into/from clients’ debit cards or personalized prepaid cards issued by the principal;c) Depositing cash to pay clients’ credit cards issued by the principal;d) Providing payment order execution, collection order execution, money transfer, cash collection and payment services.
4. Within 01 working day from the receipt of the client’s request for payment services, the Agent shall process the client’s transaction document and transfer the client’s transaction information to the principal, unless any system breakdown and/or other force majeure event results in the client’s transaction not being able to be conducted.”

1.3. Circular No. 09/2024/TT-NHNN amendments and supplements a number of articles of circulars regulating limits and safety ratios in operations and internal control systems of credit institutions and foreign bank branches

• Name of legal document: Circular No. 12/2024/TT-NHNN issued on 28/06/2024 by the State Bank of Vietnam amendments and supplements a number of articles of circulars regulating limits and safety ratios in operations and internal control systems of credit institutions and foreign bank branches (referred to as the “Circular No. 09/2024/TT-NHNN”).
• Effective date: 01/07/2024.

The content should be noted: Stipulating on credit extension management.

Specifically, Clause 10 of Article 1 of Circular No. 09/2024/TT-NHNN stipulates: “Article 1. Amending, supplementing, replacing and abolishing a number of articles of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam regulating limits and rates regulations to ensure safety in the operations of banks and foreign bank branches

… 10. Amend and supplement Article 13 as follows:

“Article 13. Credit extension management

1. Banks and foreign bank branches manage credit extension activities in accordance with the provisions of law and internal regulations on credit extension and credit extension management according to the provisions of this Circular and relevant regulations. .
2. Credit extension to the subjects specified in Point dd, Clause 1, Article 135 of the Law on Credit Institutions is carried out as follows:a) The Board of Directors, Board of Members of the bank, General Director (Director) of the foreign bank branch approves credit extensions to the person who appraises and approves credit extensions with a total outstanding balance. Credit debt at that bank or foreign bank branch has a value of VND 10 billion or more or another lower level according to the internal regulations of the bank or foreign bank branch.b) The remaining cases shall comply with the internal regulations of the bank and foreign bank branch.
3. Banks and foreign bank branches must report to:a) General Meeting of Shareholders, General Meeting of Members, credit extension to the subjects specified in Clause 1, Article 135 of the Law on Credit Institutions arising up to the time of collecting data for the General Meeting of Shareholders, Member congressb) Owners, capital contributing members, managers, and operators when credit is extension to the subjects specified in Clause 1, Article 135 of the Law on Credit Institutions;c) The State Bank regarding credit extension to subjects specified in Clause 1, Article 135 of the Law on Credit Institutions.””

1.4. Circular No. 12/2024/TT-NHNN amendments and supplements a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam regulating lending activities of credit institutions and foreign bank branches to customers

• Name of legal document: Circular No. 12/2024/TT-NHNN issued on 28/06/2024 by the State Bank of Vietnam amendments and supplements a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam regulating lending activities of credit institutions and foreign bank branches to customers (referred to as the “Circular No. 12/2024/TT-NHNN”).
• Effective date: 01/07/2024.

The content should be noted: Stipulating on loan application documents.

Specifically, Clause 8 of Article 1 of Circular No. 12/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN

…4. Amending and supplementing Article 9 as follows:

“Article 9. Loan application documents

1. When needing a loan, customers must provide the credit institution with:a) Information, documents, and data proving eligibility for loans as prescribed in Article 7 of this Circular and other information, documents, and data guided by the credit institution;b) Information about related persons to the customer in the case specified in Clause 2 of this Article.

Information about related person as individials, including full name; personal identification number; nationality, passport number, date of issue, place of issue for foreigners; relationship with customers.

Information about the related person as an organization, including name, business code, head office address of the business, number of Business Registration Certificate or equivalent legal documents, legal representative, relationships with customers.

2. The provisions in Point b, Clause 1 of this Article is applied in the following cases:a) At the time of loan request at commercial banks, cooperative banks, foreign bank branches, the customer has a total credit balance (including the loan balance that the customer is requesting a loan) greater than or equal to 0.1% of the equity capital of that commercial bank, cooperative bank, or foreign bank branch at the end of the latest working day;b) At the time of loan request at a non-bank credit institution or microfinance institution, the customer has a total credit balance (including the loan balance that the customer is requesting). loan) greater than or equal to 0.5% of the equity capital of that non-bank credit institution or microfinance institution at the end of the latest working day;c) At the time of loan request at the People’s Credit Fund, the customer has a total credit balance (including the loan balance that the customer is requesting for) greater than or equal to 1% equity capital of that people’s credit fund at the end of the latest working day;d) In case a credit institution has negative equity capital, the above ratios are applied on the charter capital or capital allocated to foreign bank branches.”.”

2.       LEGAL DOCUMENTS ARE ISSUED IN 06/2024

2.1. Circular No. 06/2024/TT-NHNN amendment and supplements a number of articles of Circular No. 02/2023/TT-NHNN dated April 23, 2023 of the Governor of the State Bank of Vietnam regulating on credit institutions and foreign bank branches restructure debt repayment terms and maintain the same debt group to support customers in difficulty

• Name of legal document: Circular No. 06/2024/TT-NHNN issued on 18/06/2024 by the State Bank of Vietnam amendment and supplements a number of articles of Circular No. 02/2023/TT-NHNN dated April 23, 2023 of the Governor of the State Bank of Vietnam regulating on credit institutions and foreign bank branches restructure debt repayment terms and maintain the same debt group to support customers in difficulty (referred to as the “Circular No. 06/2024/TT-NHNN”).
• Effective date: 18/06/2024.

The content should be noted: Stipulating on debt repayment terms.

Specifically, Clause 2 of Article 1 of Circular No. 02/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 02/2023/TT-NHNN dated April 23, 2023 of the Governor of the State Bank of Vietnam regulating credit institutions and foreign bank branches restructure debt repayment terms and maintain the same debt group to support customers in difficulty

1. Amend Clause 2, Article 4 as follows:

“2. The obligation to repay principal and/or interest arises during the period from the effective date of this Circular to December 31, 2024.”.

2. Amend Clause 8, Article 4 as follows:

“8. Restructuring the debt repayment period for customers according to the provisions of this Circular will be implemented from the effective date of this Circular until December 31, 2024.”.”

2.2. Circular No. 08/2024/TT-NHNN regulations on the management, operation and use of the National Interbank Electronic Payment System

• Name of legal document: Circular No. 08/2024/TT-NHNN issued on 25/06/2024 by the State Bank of Vietnam regulations on the management, operation and use of the National Interbank Electronic Payment System (referred to as the “Circular No. 08/2024/TT-NHNN”).
• Effective date: 15/08/2024.

The content should be noted: Stipulating on issuance, management and use of electronic signature certificates and electronic signatures participating in the National Interbank Electronic Payment System.

Specifically, Article 8 of Circular No. 08/2024/TT-NHNN stipulates: “Article 8. Issuance, management and use of electronic signature certificates and electronic signatures participating in the National Interbank Electronic Payment System

1. Electronic signatures are divided into 3 types:a) Electronic signature of the person making the order;b) Electronic signature of the person controlling the order;c) Electronic signature of the person approving the order.
2. The organization of decentralization of order makers, order controllers and order approvers at members and member units is regulated by the unit’s competent person, ensuring the principle that the person making the order, the person controlling the order, and the person approving the order are independent.
3. The State Bank issues an electronic signature certificate to the the person approving the order and an electronic signature certificate to authenticate the connection (connection certificate) between the software installed at member units and member units with the National Processing Center.

4. The issuance, management, and use of electronic signature certificates for the person approving the order and electronic signature certificates to authenticate connection to participate in the National Interbank Electronic Payment System shall comply with the regulations of the State Bank.”

1. LEGAL DOCUMENTS ARE ISSUED IN 05/2024

1.1. Circular No. 02/2024/TT-NHNN amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN dated June 30, 2016 of the Governor of the State Bank of Vietnam on money brokerage operations of commercial banks and branches of foreign banks

• Name of legal document: Circular No. 15/2023/TT-NHNN issued on 05/12/2023 by the State Bank of Vietnam regulating credit information activities of the State Bank of Vietnam (referred to as the “Circular No. 02/2024/TT-NHNN”).

• Effective date: 01/01/2025.

The content should be noted:

• Firstly, amending and supplementing regulations on interpretation of the term “Money brokerage”.

Specifically, Clause 2 of Article 1 of Circular No. 02/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN

…2. Amend and supplement Clause 1, Article 3 as follows:

“1. Money brokerage is an intermediary job with a brokerage fee to arrange the implementation of banking activities and other business activities according to the provisions of the Law on Credit Institutions between credit institutions and branches of foreign banks.””

• Secondly, amending and supplementing regulations on scope of brokerage.

Specifically, Clause 3 of Article 1 of Circular No. 02/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN

…3. Amend and supplement Article 5 as follows:

“Article 5. Scope of currency brokerage

Commercial banks and foreign bank branches are allowed to provide currency brokerage services to customers to carry out banking activities and other business activities specified in the Law on Credit Institutions.””