LEGAL UPDATE RELATING TO FINANCE AND CREDIT  (MONTHLY LEGAL UPDATE – 02/2025)

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 02/2025)

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 02/2025

1.1.  Circular No. 58/2024/TT-NHNN instructing on handling counterfeit money and suspected counterfeit money in the banking industry

  • Name of legal document: Circular No. 58/2024/TT-NHNN issued on 31/12/2024 by the State Bank of Vietnam instructing on handling counterfeit money and suspected counterfeit money in the banking industry (referred to as the “Circular No. 58/2024/TT-NHNN”).
  • Effective date: 14/02/2025.

The content should be noted: Stipulating on confiscation of counterfeit money.

Specifically, Article 5 of Circular No. 58/2024/TT-NHNN stipulates: Article 5. Confiscation of counterfeit money

  1. In cash transactions with customers, when detecting money with signs of counterfeiting, the State Bank branches, Transaction Offices, credit institutions, and foreign bank branches shall compare with the security features on real money (or sample money) of the same type or the notice on the characteristics and ways to identify Vietnamese money announced by the State Bank, compare with the notice on the characteristics of identifying counterfeit money of the State Bank or the Ministry of Public Security and handle as follows:a) In case it is confirmed that the type of counterfeit money has been notified in writing by the State Bank or the Ministry of Public Security, it is necessary to confiscate, make a record according to Form No. 01 in the Appendix issued with Decree No. 87/2023/ND-CP dated December 8, 2023 of the Government regulating the prevention and combat of counterfeit money and protection of Vietnamese money, stamp and punch counterfeit money. Stamping and punching counterfeit money shall be carried out in accordance with the provisions of Clause 2, Article 7 of this Circular.b) In case of determining that the money is a new type of counterfeit money, it is necessary to confiscate and make a record according to Form No. 01 in the Appendix issued with Decree No. 87/2023/ND-CP but the counterfeit money is not stamped or punched.

Within 02 working days from the date of confiscation of the new type of counterfeit money, the State Bank branch or the Transaction Office must notify in writing the Issuance and Treasury Department; the credit institution or foreign bank branch must notify in writing the Transaction Office or the State Bank branch in the locality where the credit institution, credit institution branch or foreign bank branch opens a payment account (hereinafter referred to as the State Bank branch in the locality). The notification shall include information on the type of money, quantity, serial number and description of the characteristics of the counterfeit money.

  1. The State Bank branches, Transaction Offices, credit institutions, and foreign bank branches must promptly notify the nearest police agency for coordination and handling when detecting one of the following cases:a) There are signs of suspicion of storing, transporting, or circulating counterfeit money.b) New counterfeit money.c) There are 5 counterfeit bills (or 5 pieces of counterfeit metal money) or more in a transaction.d) The customer does not comply with the minutes and confiscation of counterfeit money.
  2. During the process of counting, classifying, and selecting money, after handing over and receiving cash in bundles or sealed bags in the banking sector according to the regulations of the State Bank, when detecting counterfeit money, the units under the State Bank, credit institutions, and foreign bank branches shall handle it as for counterfeit money detected in cash transactions as prescribed in Clause 1 and Points b and c, Clause 2 of this Article.”

1.2.  Circular No. 60/2024/TT-NHNN regulations on treasury services for credit institutions and foreign bank branches

  • Name of legal document: Circular No. 60/2024/TT-NHNN issued on 31/12/2024 by the State Bank of Vietnam regulations on treasury services for credit institutions and foreign bank branches (referred to as the “Circular No. 60/2024/TT-NHNN”).
  • Effective date: 14/02/2025.

The content should be noted: Stipulating on rights and obligations of credit institutions.

Specifically, Article 4 of Circular No. 60/2024/TT-NHNN stipulates: Article 4. Principles for providing treasury services

  1. Service providers may only provide treasury services when:a) The establishment and operation license of a commercial bank, cooperative bank, or the establishment license of a foreign bank branch includes the permission to provide treasury services to other credit institutions and foreign bank branches;b) There are internal regulations and procedures for each type of treasury service provided to ensure the safety of assets for the service provider and the service user.
  2. When providing treasury services, service providers must have facilities that meet the requirements for treasury service provision, including:a) In the case of providing asset transportation services, they must be equipped with money transport vehicles according to the standards prescribed by the State Bank. If using other means (other than cash transport vehicles) to transport cash, valuable assets, and valuable papers, the service provider must stipulate in writing and provide instructions on the transportation and protection procedures; measures to ensure the safety of assets;b) In case of asset preservation, a vault must be used with technical standards as prescribed by the State Bank;c) Equip vehicles, machinery, and equipment suitable for each type of treasury service provision;d) Have a payment, accounting, and cash management system when providing treasury services.”

2.       LEGAL DOCUMENTS ARE ISSUED IN 01/2025

2.1. Consolidated Document No. 01/VBHN-NHNN guiding foreign currency trading between the State bank of Vietnam and credit institutions permitted to engage in foreign exchange

  • Name of legal document: Consolidated Document No. 01/VBHN-NHNN issued on 02/01/2025 by the State Bank of Vietnam guiding foreign currency trading between the State bank of Vietnam and credit institutions permitted to engage in foreign exchange.
  • Consolidated date: 02/01/2025.

The content should be noted: Consolidation of Circular No. 26/2021/TT-NHNN dated December 31, 2021 of the Governor of the State Bank of Vietnam guiding foreign currency trading between the State bank of Vietnam and credit institutions permitted to engage in foreign exchange, effective from February 15, 2022; Circular No. 12/2023/TT-NHNN dated October 12, 2023 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of legal documents regulating the implementation of the task of managing state foreign exchange reserves, effective from November 27, 2023; and Circular No. 54/2024/TT-NHNN dated December 17, 2024 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 26/2021/TT-NHNN dated December 31, 2021 of the Governor of the State Bank of Vietnam guiding foreign currency trading between the State bank of Vietnam and credit institutions permitted to engage in foreign exchange, effective from February 5, 2025.

2.2.  Decision No. 09/QĐ-NHNN on organizing a survey on inflation expectations for credit institutions and foreign bank branches in the period 2025-2030

  • Name of legal document: Decision No. 09/QĐ-NHNN issued on 03/01/2025 by the State Bank of Vietnam on organizing a survey on inflation expectations for credit institutions and foreign bank branches in the period 2025-2030 (referred to as the “Decision No. 09/QĐ-NHNN”).
  • Effective date: 05/01/2025.

The content should be noted: Stipulating on the responsibilities of credit institutions and foreign bank branches.

Specifically, Clause 3 Article 4 of Decision No. 09/QĐ-NHNN stipulates: Article 2. Responsibilities of relevant agencies and units

  1. Credit institutions and foreign bank branches: Provide complete information as requested within the prescribed time limit and exercise other rights and obligations as prescribed by law.”

2.3.  Decision No. 11/QĐ-NHNN on organizing a survey on credit trends for credit institutions and foreign bank branches in the period 2025-2030

  • Name of legal document: Decision No. 11/QĐ-NHNN issued on 03/01/2025 by the State Bank of Vietnam on organizing a survey on credit trends for credit institutions and foreign bank branches in the period 2025-2030 (referred to as the “Decision No. 11/QĐ-NHNN”).
  • Effective date: 05/01/2025.

The content should be noted: Stipulating on the responsibilities of credit institutions and foreign bank branches.

Specifically, Clause 3 Article 4 of Decision No. 11/QĐ-NHNN stipulates: Article 2. Responsibilities of relevant agencies and units

  1. Credit institutions and foreign bank branches: Provide complete information as requested within the prescribed time limit and exercise other rights and obligations as prescribed by law.”

2.4. Consolidated Document No. 03/VBHN-NHNN prescribing credit institutions and foreign bank branches’ trading of[1] deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches

  • Name of legal document: Consolidated Document No. 03/VBHN-NHNN issued on 07/01/2025 by the State Bank of Vietnam prescribing credit institutions and foreign bank branches’ trading of[1] deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches.
  • Consolidated date: 07/01/2025.

The content should be noted: Consolidation of Circular No. 12/2021/TT-NHNN dated July 30, 2021 of the Governor of the State Bank of Vietnam prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches, coming into force from October 27, 2021; and Circular No. 59/2024/TT-NHNN dated December 31, 2024 of the Governor of the State Bank of Vietnam providing amendments to Circular No. 12/2021/TT-NHNN dated July 30, 2021 of the Governor of the State Bank of Vietnam prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches, coming to force from March 15, 2025.

LEGAL UPDATE RELATING TO FINANCE AND CREDIT  (MONTHLY LEGAL UPDATE – 02/2025)

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 01/2025)

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 01/2025

1.1.  Circular No. 15/2023/TT-NHNN regulating credit information activities of the State Bank of Vietnam

  • 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. 15/2023/TT-NHNN”).
  • Effective date: 01/01/2025.

The content should be noted: Stipulating on rights and obligations of credit institutions.

Specifically, Article 16 of Circular No. 15/2023/TT-NHNN stipulates: Article 16. Rights and obligations of credit institutions

  1. Establish an information infrastructure to meet the requirements of data creation and control of data provided to CIC; promulgate internal regulations and manage the credit information criteria system throughout the system.
  2. Pay in full and on time the fees for exploiting and using credit information services according to the contract signed with CIC.
  3. Send officials and employees to participate in credit information training courses organized or coordinated by CIC.
  4. Implement other rights and obligations as agreed with CIC and relevant provisions of law.”

1.2. Circular No. 50/2024/TT-NHNN regulations on safety and security for providing online services in the banking industry

  • Name of legal document: Circular No. 50/2024/TT-NHNN issued on 31/10/2024 by the State Bank of Vietnam regulations on safety and security for providing online services in the banking industry (referred to as the “Circular No. 50/2024/TT-NHNN”).
  • Effective date: 01/01/2025.

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

Specifically, Clause 6 Article 7 of Circular No. 50/2024/TT-NHNN stipulates: “6. Mandatory functions of Online Banking application software:

a) All data transmitted over the network environment or data exchanged between Online Banking application software and related equipment must apply the end-to-end encryption mechanism;

b) Ensure the integrity of transaction data, any unauthorized modifications must be detected, warned, prevented or have appropriate handling measures to ensure the accuracy of transaction data during the transaction process, data storage;

c) Control transaction sessions: the system has a mechanism to automatically disconnect the transaction session when the user does not operate for a period of time specified by the unit or apply other protection measures;

d) Has a concealment function for displaying secret keys, PIN codes used to log into the system;

dd) Has an anti-automatic login function;

e) In case the electronic transaction account specified in Clause 1, Article 9 of this Circular uses a PIN code or secret key as a form of confirmation, the Online Banking application software must have functions to control the PIN code and secret key:

(i) Require customers to change the PIN code or secret key in case the customer is issued a default PIN code or secret key for the first time;

(ii) Notify customers when the PIN code or secret key is about to expire;

(iii) Cancel the validity of the PIN code or secret key when it expires; request customers to change the expired PIN code or secret key when the customer uses the PIN code or secret key to log in;

(iv) Cancel the validity of the PIN code or secret key in case the PIN code or secret key is entered incorrectly more than the number of times specified by the unit (but not more than 10 times) and notify the customer;

(v) The unit shall only reissue the PIN code or secret key when requested by the customer and must check and identify the customer before reissuing it, ensuring against fraud and forgery.

g) For customers who are organizations, the application software is designed to ensure that the implementation of online payment transactions includes at least two steps: transaction creation and approval. In the case where the customer is a business household or a micro-enterprise applying a simple accounting regime, the implementation of the transaction does not require separating the two steps of transaction creation and approval;

h) There is a function to notify the first login to the Online Banking application software or the login to the Online Banking application software on a device other than the device that last logged in to the Online Banking application software via SMS or other channels registered by the customer (phone, email, etc.), except in the case where the customer is an organization: logging in on devices that have registered to use the service; or log in using at least one of the confirmation forms specified in Clause 3, Clause 4, Clause 5, Clause 7, Clause 8, Clause 9, Article 11 of this Circular.”

1.3. Decision No. 2690/QD-NHNN prescribing interest rates imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under Circular No. 11/2013/TT-NHNN dated May 15, 2013, Circular No. 32/2014/TT-NHNN dated November 18, 2014 and Circular No. 25/2016/TT-NHNN dated July 29, 2016

  • Name of legal document: Decision No. 2690/QD-NHNN issued on 18/11/2024 by the State Bank of Vietnam prescribing interest rates imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under Circular No. 11/2013/TT-NHNN dated May 15, 2013, Circular No. 32/2014/TT-NHNN dated November 18, 2014 and Circular No. 25/2016/TT-NHNN dated July 29, 2016 (referred to as the “Decision No. 2690/QD-NHNN”).
  • Effective date: 01/01/2025.

The content should be noted: The interest rate imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under the Circular No. 11/2013/TT-NHNN, the Circular No. 32/2014/TT-NHNN and the Circular No. 25/2016/TT-NHNN.

Specifically, Article 1 of Circular Circular No. 25/2016/TT-NHNN stipulates: Article 1. The interest rate imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under the Circular No. 11/2013/TT-NHNN dated May 15, 2013, the Circular No. 32/2014/TT-NHNN dated November 18, 2014 and the Circular No. 25/2016/TT-NHNN dated July 29, 2016 is 4,7%/year.”

1.4. Circular No. 51/2024/TT-NHNN regulations on safety and security for providing online services in the banking industry

  • Name of legal document: Circular No. 51/2024/TT-NHNN issued on 29/11/2024 by the State Bank of Vietnam prescribing independent audit of commercial banks, non-bank credit institutions, microfinance institutions, and foreign bank branches (referred to as the “Circular No. 51/2024/TT-NHNN”).
  • Effective date: 15/01/2025.

The content should be noted: Responsibilities of credit institutions and FBBs.

Specifically, Article 15 of Circular No. 51/2024/TT-NHNN stipulates: “Article 15. Responsibilities of credit institutions and FBBs

  1. Select independent audit organizations in accordance with provisions of this Circular.
  2. Within 30 days from their decision on selection of independent audit organization, send written notice of the selected independent audit organization to SBV according to the following provisions:a) Credit institutions and FBBs shall send their notices to SBV (via the SBV Banking Supervision Agency), except the case in point b of this clause;b) An FBB that is subject to microprudential supervision of a SBV’s branch in province or central-affiliated city where it is located (hereinafter referred to as “SBV’s provincial branch”) shall send its notice to that SBV’s provincial branch.
  3. Fulfill the obligations specified in Article 39 of the Law on Independent Audit and other regulations of law on independent audit.
  4. Within 90 days from the end of a fiscal year, send independent audit outcomes to SBV according to points a and b clause 2 of this Article.
  5. Send written notification to SBV of any dispute about independent audit outcomes, in which description, explanation and proposed solutions for settling the dispute must be included in accordance with relevant laws.
  6. Carry out public disclosure of financial information in accordance with regulations of law in force.”

1.5. Circular No. 52/2024/TT-NHNN prescribing formulation and implementation of roadmap for compliance with provisions of Law on credit institutions No. 32/2024/QH15 by commercial banks whose shareholders, shareholders and their related persons owning shares in excess of limits prescribed in Article 55 of the Law on credit institutions No. 47/2010/QH12, as amended by Law No. 17/2017/QH14

  • Name of legal document: Circular No. 52/2024/TT-NHNN issued on 29/11/2024 by the State Bank of Vietnam prescribing formulation and implementation of roadmap for compliance with provisions of Law on credit institutions No. 32/2024/QH15 by commercial banks whose shareholders, shareholders and their related persons owning shares in excess of limits prescribed in Article 55 of the Law on credit institutions No. 47/2010/QH12, as amended by Law No. 17/2017/QH14 (referred to as the “Circular No. 52/2024/TT-NHNN”).
  • Effective date: 15/01/2025.

The content should be noted: Responsibilities of commercial banks.

Specifically, Article 05 of Circular No. 52/2024/TT-NHNN stipulates: Article 5. Responsibilities of commercial banks

  1. Commercial banks shall act as focal points in formulating and implementing compliance roadmaps; monitor and expedite shareholders, shareholders and their related persons owning shares beyond prescribed limit to cooperate in formulating and implementing compliance roadmaps as prescribed in this Circular.
  2. Prepare physical quarterly reports on implementation of compliance roadmaps using the form in the Appendix enclosed herewith, and submit them directly or by post to SBV (via the SBV Banking Supervision Agency). Such a quarterly report includes data collected from the 15thday of the month preceding the reporting quarter to the 14thday of the last month of the reporting quarter. A quarterly report must be submitted by the 25th day of the last month of the reporting quarter (report of Quarter III, 2025 shall be the first reporting quarter).
  3. Assume legal responsibility for the accuracy and adequacy of their information provided for SBV, and relevant organizations and individuals.”
LEGAL UPDATE RELATING TO FINANCE AND CREDIT  (MONTHLY LEGAL UPDATE – 02/2025)

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 12/2024)

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 12/2024

1.1. 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

  1. 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 whena) 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);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.

  1. 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.

…””

2.       LEGAL DOCUMENTS ARE ISSUED IN 11/2024

2.1. Decision No. 2410/QD-NHNN on maximum interest rates for USD deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024

  • Name of legal document: Decision No. 2410/QD-NHNN issued on 01/11/2024 by the State Bank of Vietnam on maximum interest rates for USD deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024 (referred to as the “Decision No. 2410/QD-NHNN”).
  • Effective date: 20/11/2024.

The content should be noted: Maximum interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches.

Specifically, Article 1 of Decision No. 2410/QD-NHNN stipulates: Article 1. The maximum interest rate for deposits in US dollars of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024 is as follows:

  1. The interest rate applicable to deposits of organizations (except credit institutions and foreign bank branches) is 0%/year.
  2. The interest rate applicable to deposits of individuals is 0%/year.”

2.2. Decision No. 2411/QD-NHNN on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024

  • Name of legal document: Decision No. 2411/QD-NHNN issued on 01/11/2024 by the State Bank of Vietnam on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024 (referred to as the “Decision No. 2411/QD-NHNN”).
  • Effective date: 20/11/2024.

The content should be noted: Maximum interest rates for deposits in Vietnamese Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches.

Specifically, Article 1 of Decision No. 2411/QD-NHNN stipulates: Article 1. The maximum interest rate for deposits in Vietnamese Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024 is as follows:

1. The maximum interest rate applicable to non-term deposits and deposits with terms of less than 1 month is 0.5%/year.

2. The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months is 4.75%/year; People’s Credit Funds and Microfinance Institutions apply the maximum interest rate for deposits with terms from 1 month to less than 6 months at 5.25%/year.”

LEGAL UPDATE RELATING TO FINANCE AND CREDIT  (MONTHLY LEGAL UPDATE – 02/2025)

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 11/2024)

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

  1. 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.

  1. 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.

 

 

LEGAL UPDATE RELATING TO FINANCE AND CREDIT  (MONTHLY LEGAL UPDATE – 02/2025)

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 08&09/2024)

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
No. Number of administrative procedure records Name of administrative procedure Name of the legal document Field Implementing unit
1 Procedures for approval of eligibility to convert legal form of foreign subsidiary bank Circular No. 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
  1. List of administrative procedures amended and supplemented within the scope of management functions of the State Bank
No. Number of administrative procedure records Name of administrative procedure Name of the legal document regulating the content of amendments and supplements Field Implementing unit
A. Administrative procedures performed at the State Bank of Vietnam
1. 2.001399 Procedures for approval of eligibility to establish domestic branches of commercial banks Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
2. 2.001392 Procedures for approval of eligibility to establish a transaction office of a commercial bank Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
3. 1.003334 Procedures for approval of establishment of branches, representative offices, and foreign subsidiary banks of commercial banks Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
4. 2.001380 Procedures for approval of establishment of representative offices and domestic public service units of commercial banks Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
B. Administrative procedures performed at the State Bank branches in provinces and centrally-run cities (State Bank branches)
1. 1.000206 Procedures for approving changes in the branch managing a transaction office of a commercial bank Circular 32/2024/TT-NHNN Bank establishment and operation State Bank branch
2. 1.000394 Procedures for voluntary termination of domestic branch operations of commercial banks Circular 32/2024/TT-NHNN Bank establishment and operation State Bank branch
3. 1.002167 Procedures for approving commercial banks to voluntarily terminate transaction office operations Circular 32/2024/TT-NHNN Bank establishment and operation State Bank branch
  1. List of alternative administrative procedures under the management scope of the State Bank of Vietnam
No. Alternative administrative procedures Administrative procedures are replaced Name of the legal document regulating the content of amendments and supplements Field Implementing unit
Administrative Procedure Code Name of administrative procedure Administrative Procedure Code Name of administrative procedure
1 1.000194 Procedures for approval of change of location of domestic branch office, transaction office within province or centrally-run city 1.000194 Procedures for approving change of location/confirming change of address (no change of location) for domestic branch headquarters and transaction offices of commercial banks Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)
2 Procedures for approving changes in location of domestic branch offices and transaction offices between provinces and centrally run cities Circular 32/2024/TT-NHNN Bank establishment and operation State Bank of Vietnam (Banking Inspection and Supervision Agency)

Need-To-Know Joint Children Of Spouses

Need-To-Know Joint Children Of Spouses

NEED-TO-KNOW

JOINT CHILDREN OF SPOUSES

  • What is the purpose of determining the joint child of the spouses?

The determination of joint children of spouses is intended to record the relationship of father, mother and child, thereby serving as a basis for resolving issues of child custody when divorcing, inheritance, fulfillment of alimony obligations,…

  • When to call a joint child of the spouses?[1]

Children born (including assisted reproductive births, surrogacy for humanitarian purposes) during marriage period or because the wife becomes pregnant during the marriage are joint children of the spouses.

Children born within 300 days from the time of termination of marriage are considered children due to the wife’s pregnancy during the marriage period.

Children born before the date of marriage registration and recognized by their parents as joint children of the spouses.

  • What about exceptions?

If the father and/or the mother does not admit the child, if there is evidence (e.g. the results of the AND assessment), a petition must be filed and it must be determined by the Court.[2]

In case the natural father and/or mother wants to recognize a child, if there is evidence (such as the results of the AND assessment), the application for registration of adoption shall be submitted to the commune-level People’s Committee[3] (detailed dossier and procedure, see instructions at the National Public Service Portal: Link here).

Joint children of spouses

[1] Clause 1 of Articles 88, 93 and 94 of the Law on Marriage and Family No. 52/2014/QH13.

[2] Clause 2, Article 88 of the Law on Marriage and Family No. 52/2014/QH13.

[3] Article 25 of the Law on Civil Status No. 60/2014/QH13.

NEED-TO-KNOW

VALIDITY OF DIGITAL SIGNATURE

1. What is a digital signature? A digital signature (DS) is a form of electronic signature of an individual or organization. DS can be provided by an official unit (providing DS certification services in accordance with Vietnamese law, such as VNPT, Viettel, FIS CORP,…) or unofficially (not licensed by the Government of Vietnam).

2. Does DS invalidate a civil transaction?

Transactions signed with DS have the same legal validity as directly signed[i], when DS meets the security conditions prescribed by law (validity, secret key, public key, control of the signers secret key,…). In other words, signing with a legally satisfactory DS will not render the transaction invalid.

Note, according to Vietnamese law[ii], Transactions are considered invalid when the subject establishing the transaction laDS capacity (passive legal, active legal). Simply, we need to verify that the DS really belongs to the partner’s representative and is it legal?

We think that the use of DS provided by an official unit would be advantageous in this verification, as well as when requesting the deed as evidence if a dispute arises in this regard (using unofficial DS, even provided by a world-renowned unit,  but it will be difficult to prove this).

3. Does the Company’s individual DS have a legal risk for transactions?

If the transaction is signed using the Companys legitimate DS, then it is essentially valid, the likelihood of invalidity will be very low.

If the transaction is signed with a personal DS (whether a individual of the Company, a legal representative, even with the Companys seal), then it can still be disputed as to the validity of the transaction resulting in the transaction being invalid. Because then, the conclusion will depend on the evidence proving the legitimacy of DS as mentioned above.

 

[i] Article 8 and 9 of Decree No. 130/2018/ND-CP

[ii] Articles 122 and 117 of the Civil Code No. 91/2015/QH13