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

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

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

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 07/2024)

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:

Home mortgage loans

Below 40% in LTV

From 40% to below 60% in LTV

From 60% to below 80% in LTV

From 80% to below 90% in LTV

From 90% to below 100% in LTV

From 100% in LTV

Maximum DSC ratio of 35%

20%

25%

30%

35%

40%

45%

DSC ratio of greater than 35%

25%

30%

35%

40%

45%

50%

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

Home mortgage loans

Below 40% in LTV

From 40% to below 60% in LTV

From 60% to below 80% in LTV

From 80% to below 90% in LTV

From 90% to below 100% in LTV

From 100% in LTV

Maximum DSC ratio of 35%

25%

30%

40%

50%

60%

80%

DSC ratio of greater than 35%

30%

40%

50%

70%

80%

100%

””

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.

  1. 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.”.

  1. 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.”

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

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 06/2024)

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.””

Need-to-know Effective time of the Non-disclosure agreement

Need-to-know Effective time of the Non-disclosure agreement

NEED-TO-KNOW

EFFECTIVE TIME OF THE NON-DISCLOSURE AGREEMENT

The Non-disclosure agreement (NDA) is usually not the main contract, but it’s effective time may not coincide with the main contract, unlike other accompanying agreements. Basically, the NDA effective time is the period during which the Recipient is obliged to keep confidential information confidential as desired by the Provider.

How should this effective time be prescribed?

  • Benefit to the Provider: This effect should be indefinite, meaning that even if the Master Contract terminates and/or the transaction ends, the Recipient must keep confidential information confidential.

Example: This Non-disclosure agreement is effective from the time the Recipient first acquires the Confidential Information, continuously and forever (including if the Master Contract and/or Transaction is terminated, cancelled or invalidated).

  • Benefit to the Recipient: This effect should be narrow, meaning that when the Main Contract is terminated, the Recipient is no longer required to keep confidential information confidential.

Example: This Non-disclosure agreement is effective from the time it is entered into by the Parties, continues continuously and terminates at the same time as the Master Contract.

  • Cân bằng cho Các Bên: This effect should be deterministic, i.e. after a certain period of time (at which time the disclosed confidential information is not harmful to the Provider) the NDA ceases and the Recipient is no longer required to keep the confidential information confidential.

Example: This Confidentiality Agreement is effective from the time the Recipient first acquires the Confidential Information, is continuous and terminates [36 months] from the time of termination of the Master Contract.

(Where there is special confidential information that needs to be protected forever, an “exception rule” should be added.)

Note: In fact, many NDAs stipulate “… the obligation to keep confidentiality of Confidential Information in effect after the termination of this NDA, which may affect the enforceability, as the question arises: Does the NDA terminate, does the Recipient’s liability provision for breach of confidentiality obligation remain valid?

Need-To-Know Validity Of Digital Signature

Need-To-Know Validity Of Digital Signature

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