1. LEGAL DOCUMENTS ARE ISSUED IN 09/2022

1.1. Decision No. 1606/QĐ-NHNN on the refinancing interest rate, re-discount interest rate, overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for credit institutions, foreign bank branches

• Name of legal document: Decision 1606/QD-NHNN issued on 22/09/2022 by the State Bank of Vietnam on the refinancing interest rate, rediscounting interest rate, overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for credit institutions, foreign bank branches (referred to as the “Decision No. 1606/QD-NHNN”).

• Effective date: 23/09/2022.

The content should be noted:

• Firstly, stipulating on interest rates of the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 1606/QD-NHNN stipulates: “Article 1. Regulations on interest rates of the State Bank of Vietnam are as follows:

1. Refinancing interest rate: 5.0%/year.

2. Rediscounting interest rate: 3.5%/year.

3. overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for credit institutions, foreign bank branches: 6.0%/year.

• Secondly, stipulating on the effective time of Decision No. 1606/QD-NHNN.

Specifically, Article 2 of Decision No. 1606/QD-NHNN stipulates: “Article 2. This Decision takes effect from September 23, 2022 and replaces Decision No. 1728/QD-NHNN dated September 30, 2020 of the Governor of the State Bank refinancing interest rate, rediscounting interest rate, overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for banks.”

1.2. Decision No. 1607/QD-NHNN maximum interest rates of deposits in Vietnam dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014

• Name of legal document: Decision 1607/QD-NHNN issued on 22/09/2022 by the State Bank of Vietnam maximum interest rates of deposits in Vietnam dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNNdated March 17, 2014 (referred to as the “Decision No. 1607/QD-NHNN”).

• Effective date: 23/09/2022.

The content should be noted:

• Firstly, stipulating on maximum interest rates of deposits in Vietnam dong of organizations and individuals at credit institutions and branches of foreign banks according to circular No. 07/2014/TT-NHNNdated March 17, 2014.

Specifically, Article 1 of Decision No. 1607/QD-NHNN stipulates: “Article 1. Maximum interest rates of deposits in Vietnam Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and branches of foreign banks according to circular No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:

1. The maximum interest rate applicable to demand deposits and term deposits under 1 month is 0.5%/year.

2. The maximum interest rate applicable to term deposit from 1 month to less than 6 months is 5.0%/year; in particular, People’s Credit Funds and microfinance institutions shall adopt the maximum interest rate of 5.5%/year with respect to term deposit from 1 month to less than 6 months.”

• Secondly, stipulating on the effective time of Decision No. 1607/QD-NHNN.

Specifically, Article 2 of Decision No. 1607/QD-NHNN stipulates: “Article 2.

1. This Decision comes into force from September 23, 2022 and replaces Decision No. 1729/QD-NHNN dated September 30, 2020 of Governor of State Bank of Vietnam on maximum interest rates of deposits in Vietnam Dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014.

2. With respect to interest rates of term deposit in Vietnam Dong of organizations and individuals at credit institutions and foreign bank branches made before the effective date hereof, the interest rates shall continue to be applied for the whole period; in case the agreed period is expired and organizations and individuals do not withdraw the deposits, the credit institutions and foreign bank branches shall adopt interest rates of deposits as specified in this Decision.”\

1.3. Circular No. 11/2022/TT-NHNN regulating on bank guarantee

• Name of legal document: Circular 11/2022/TT-NHNN issued on 30/09/2022 by the State Bank of Vietnam regulating on bank guarantee (referred to as the “Circular No. 11/2022/TT-NHNN”).

• Effective date: 01/04/2023.

The content should be noted:

• Firstly, stipulating on cases of non-guarantee, guarantee restriction and implementation of credit limit

Specifically, Article 5 of Circular No. 11/2022/TT-NHNN stipulates: “Article 5. Cases of non-guarantee, guarantee restriction and implementation of credit limit

When making guarantees, credit institutions and foreign bank branches must comply with the provisions of the Law on Credit Institutions and the guidance of the State Bank of Vietnam (hereinafter referred to as the State Bank) about the cases of not being granted credit, restrict credit granting, limiting credit granting.”

• Secondly, stipulating on requirements for customers.

Specifically, Article 11 of Circular No. 11/2022/TT-NHNN stipulates: “Article 11. Requirements for customers

1. Credit institutions, foreign bank branches shall consider and decide to grant guarantees, reciprocal guarantees, and confirm guarantees for customers when customers satisfy the following requirements:a) Having full civil legal capacity and civil act capacity as prescribed by law;b) The guaranteed obligation is a lawful financial obligation;c) Being assessed by the credit institution, foreign bank’s branch with guarantee to be able to repay the amount that the credit institution or foreign bank branch has to pay on behalf of when performing the guarantee obligation.

2. Credit institutions, foreign bank branches are not allowed to guarantee for the bond payment obligations of the issuing enterprises for the purposes of: restructuring the debts of the issuing enterprises themselves; contribute capital, buy shares in other enterprises and increase the scale of operating capital.”

1.4. Circular No. 12/2022/TT-NHNN guidelines on foreign exchange management for foreign loans and foreign debt repayment of enterprise

• Name of legal document: Circular 12/2022/TT-NHNN issued on 30/09/2022 by the State Bank of Vietnam guidelines on foreign exchange management for foreign loans and foreign debt repayment of enterprise (referred to as the “Circular No. 12/2022/TT-NHNN”).

• Effective date: 15/11/2023.

The content should be noted: Stipulating on monitoring foreign borrowing and repayment of borrowers being commercial banks or foreign bank branches

Specifically, Article 27 of Circular No. 12/2022/TT-NHNN stipulates: “Article 27. Monitoring foreign borrowing and repayment of borrowers being commercial banks or foreign bank branches

1. Commercial banks, foreign bank branches that are borrowers are not required to open and use foreign loan and debt repayment accounts at a credit institution or foreign bank branch to make the foreign loans.

2. Commercial banks, foreign bank branches being borrowers are responsible for monitoring their transactions related to foreign loans in strict accordance with current regulations on accounting and bookkeeping for commercial banks, foreign bank branches; be responsible for and ensure the implementation of transactions related to foreign loans in accordance with the contents of the State Bank’s document certifying the registration and registration of changes to foreign loans of the commercial bank orforeign bank branches.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/08/2022

1.1. Circular No. 04/2022/TT-NHNN regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches

• Name of legal document: Circular No. 04/2022/TT-NHNN issued on 16/06/2022 by 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. 04/2022/TT-NHNN”).
• Effective date: 01/08/2022.

Some contents should be noted: Stipulating on interest rates on premature withdrawal of deposits.

Specifically, Article 5 of Circular No. 04/2022/TT-NHNN stipulates: “Article 5. Interest rates on premature withdrawal of deposits

1. When a client withdraws all of the deposit: credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or the currency of the deposit when such client withdraws it.
2. When a client withdraws a part of the deposit:a) Regarding the part of withdrawn deposit before maturity, credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or currency of the deposit when such client withdraws it;b) Regarding the remaining deposit, credit institutions shall apply the interest rate equal to the interest rate applied to the deposit that the client has withdrawn a part.”

1.2. Circular No. 05/2022/TT-NHNN abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam

• Name of legal document: Circular No. 05/2022/TT-NHNN issued on 29/06/2022 by the State Bank of Vietnam abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam (referred to as the “Circular No. 05/2022/TT-NHNN”).
• Effective date: 15/08/2022.

Some contents should be noted: Abolish (i) Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing; and (ii) Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.

Specifically, clause 1 and clause 7 Article 1 of Circular No. 05/2022/TT-NHNN stipulates: “Article 1. Abolish all legal documents

The following legal documents promulgated by the Governor of the State Bank are abolished:

Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing.

…

Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.”

1.3. Circular No. 06/2022/TT-NHNN amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks

• Name of legal document: Circular 06/2022/TT-NHNN issued on 30/06/2022 by the State Bank of Vietnam amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks (referred respectively to as the “Circular No. 06/2022/TT-NHNN” and “Circular No. 50/2018/TT-NHNN”).
• Effective date: 15/08/2022.

The content should be noted:

• Firstly, amending and supplementing regulations on rules for preparing and submitting applications for approval for changes specified in Clause 4, Article 3 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

1. Amending and supplementing Clause 4, Article 3[1] as follows:

“4. Dossiers shall be submitted directly at the One Door Department or via postal service to the State Bank of Vietnam or the State Bank’s branches in provinces and cities (hereinafter collectively referred to as the State Bank).””

Secondly, amending and supplementing regulations on the power to grant approval for changes are specified in Clause 1, Article 4 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

…

2. Amending and supplementing Clause 1, Article 4[2] as follows:

“1. The Governor of the State Bank shall approve the changes specified in Clause 1, Article 1 of this Circular for commercial banks and large-scale foreign bank branches under the decision of the Governor of the State Bank; content of changing the location of the head office of the foreign bank branch other than the province or city where the foreign bank branch is located.””

1.4. Circular No. 08/2022/TT-NHNN regulations on banking supervision order and procedures

• Name of legal document: Circular 08/2022/TT-NHNN issued on 30/06/2022 by the State Bank of Vietnam regulations on banking supervision order and procedures (referred to as the “Circular No. 08/2022/TT-NHNN”).
• Effective date: 01/09/2022.

The content should be noted: Stipulating banking supervision order and procedures

Specifically, Article 5 of Circular No. 08/2022/TT-NHNN stipulates: “Article 5. Order and procedures for banking supervision

1. The order and procedures for banking supervision shall be as follows:a) Step 1: Collect, synthesize and process documents, information and data;b) Step 2: Implement compliance monitoring and/or risk monitoring;c) Step 3: Make a monitoring report, propose handling measures.
2. The monitoring, expediting and inspecting of the implementation of inspection conclusions by credit institutions and foreign bank branches shall comply with the Government’s regulations on the implementation of inspection conclusions and regulations in this Circular.”

2. LEGAL DOCUMENTS ARE ISSUED IN 07/2022

Consolidated document No. 11/VBHN-NHNN stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks

• Name of legal document: Consolidated document No. 11/VBHN-NHNN issued on 07/07/2022 by the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks.
• Effective date: 07/07/2022.

The content should be noted: Consolidating (i) Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks, effective from February 15, 2019; and (ii) Circular No. 06/2022/TT-NHNN dated June 30, 2022 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN dated 31 December 2018 of the Governor of the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks, effective from August 15, 2022.

[1] Article 3. Rules for preparing and submitting applications for approval for changes

…

4. The application shall be submitted, directly or by post, to the State Bank of Vietnam (through the Banking Supervision Agency) or the authorized State Bank branch of a province or city (hereinafter referred to as “the State Bank”).

[2] Article 4. The power to grant approval for changes

1. The Governor of the State Bank shall grant approval for changes specified in Clause 1 Article 1 of this Circular, of large-scale commercial banks and FBBs under the decision of the Governor of the State Bank of Vietnam.

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/07/2022

1.1. Circular No. 04/2022/TT-NHNN regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches

• Name of legal document: Circular No. 04/2022/TT-NHNN issued on 16/06/2022 by 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. 04/2022/TT-NHNN”).
• Effective date: 01/08/2022.

Some contents should be noted: Stipulating on interest rates on premature withdrawal of deposits.

Specifically, Article 5 of Circular No. 04/2022/TT-NHNN stipulates: “Article 5. Interest rates on premature withdrawal of deposits

1. When a client withdraws all of the deposit: credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or the currency of the deposit when such client withdraws it.
2. When a client withdraws a part of the deposit:a) Regarding the part of withdrawn deposit before maturity, credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or currency of the deposit when such client withdraws it;b) Regarding the remaining deposit, credit institutions shall apply the interest rate equal to the interest rate applied to the deposit that the client has withdrawn a part.”

1.2. Circular No. 05/2022/TT-NHNN abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam

• Name of legal document: Circular No. 05/2022/TT-NHNN issued on 29/06/2022 by the State Bank of Vietnam abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam (referred to as the “Circular No. 05/2022/TT-NHNN”).
• Effective date: 15/08/2022.

Some contents should be noted: Abolish (i) Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing; and (ii) Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.

Specifically, clause 1 and clause 7 Article 1 of Circular No. 05/2022/TT-NHNN stipulates: “Article 1. Abolish all legal documents

The following legal documents promulgated by the Governor of the State Bank are abolished:

Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing.

…

Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.”

1.3.  Circular No. 06/2022/TT-NHNN amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks

• Name of legal document: Circular 06/2022/TT-NHNN issued on 30/06/2022 by the State Bank of Vietnam amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks (referred respectively to as the “Circular No. 06/2022/TT-NHNN” and “Circular No. 50/2018/TT-NHNN”).
• Effective date: 15/08/2022.

The content should be noted:

• Firstly, amending and supplementing regulations on rules for preparing and submitting applications for approval for changes specified in Clause 4, Article 3 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

1. Amending and supplementing Clause 4, Article 3[1] as follows:

“4. Dossiers shall be submitted directly at the One Door Department or via postal service to the State Bank of Vietnam or the State Bank’s branches in provinces and cities (hereinafter collectively referred to as the State Bank).””

Secondly, amending and supplementing regulations on the power to grant approval for changes are specified in Clause 1, Article 4 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

…

2. Amending and supplementing Clause 1, Article 4[2] as follows:

“1. The Governor of the State Bank shall approve the changes specified in Clause 1, Article 1 of this Circular for commercial banks and large-scale foreign bank branches under the decision of the Governor of the State Bank; content of changing the location of the head office of the foreign bank branch other than the province or city where the foreign bank branch is located.””

2. LEGAL DOCUMENTS ARE ISSUED IN 06/2022

Decision No. 1032/QD-NHNN on the announcement of new administrative procedures promulgating the field of credit activities performed at the One Door Department under the management function of the State Bank of Vietnam

• Name of legal document: Decision No. 1032/QD-NHNN issued on 15/06/2022 by the State Bank of Vietnam on the announcement of new administrative procedures promulgating the field of credit activities performed at the One Door Department under the management function of the State Bank of Vietnam (referred to as the “Decision No. 1032/QD-NHNN”).
• Effective date: 15/06/2022.

The content should be noted: Regulation on procedures for interest rate support from the state budget for loans of enterprises, cooperatives and business households according to Decree 31/2022/ND-CP dated May 20, 2022 of the Government.

Specifically, Part I Item NEW ADMINISTRATIVE PROCEDURES PROMULGATING THE FIELD OF CREDIT ACTIVITIES UNDER THE MANAGEMENT FUNCTION OF THE STATE BANK OF VIETNAM of Decision No. 1032/QD-NHNN stipulates:

“PART I.

LIST OF ADMINISTRATIVE PROCEDURES

”

[1] Article 3. Rules for preparing and submitting applications for approval for changes

…

4. The application shall be submitted, directly or by post, to the State Bank of Vietnam (through the Banking Supervision Agency) or the authorized State Bank branch of a province or city (hereinafter referred to as “the State Bank”).

[2] Article 4. The power to grant approval for changes

1. The Governor of the State Bank shall grant approval for changes specified in Clause 1 Article 1 of this Circular, of large-scale commercial banks and FBBs under the decision of the Governor of the State Bank of Vietnam.

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/05/2022

1.1. Decree No. 31/2022-ND-CP on interest rate support from the state budget for loans of enterprises, cooperatives, and household business

• Name of legal document: Decree No. 31/2022/ND-CP issued on 20/05/2022 by the Government on interest rate support from the state budget for loans of enterprises, cooperatives, and household business (referred to as the “Decree No. 31/2022/ND-CP”).

• Effective date: 20/05/2022.

Some contents should be noted:

• Firstly, stipulating on conditions for interest rate support.

Specifically, Article 4 of Decree No. 31/2022/ND-CP stipulates: “Article 4. Conditions for interest rate support

1. The customer has requested interest rate support, meets the loan conditions in accordance with the current law on lending activities of credit institutions, foreign bank branches to customers.

2. Interest rate-supported loan is a loan in Vietnam Dong, signed a loan agreement and disbursed during the period from January 1, 2022 to December 31, 2023, using the capital for the correct purposes specified in Clause 2, Article 2 of this Decree and have not been supported with any interest rate from the state budget under other policies.

3. The loan may not continue to receive interest rate support in the following cases:a) Loans with overdue principal balance and/or late payment interest balance are not eligible for interest support for the interest payment obligation at the interest payment term which the time of repayment is within the specified time period in which overdue principal balance and/or late payment interest balance. The loan can only continue to receive interest support for the next interest payment terms after the customer has fully paid the overdue principal balance and/or the late payment interest balance.b) Loans with debt extension are not supported with interest rate for the debt extension period.”

• Secondly, stipulating on term and level of interest rate support.

Specifically, Article 5 of Decree No. 31/2022/ND-CP stipulates: “Article 5. Term and level of interest rate support

1. The term of interest rate support is counted from the date of loan disbursement to the time when the customer pays off the loan principal and/or interest as agreed between the commercial bank and the customer, consistent with the announced interest rate support funding source, but not beyond December 31, 2023.

2. The level of interest rate support for customers is 2%/year, calculated on the loan balance and the actual interest rate support loan term is within the period specified in Clause 1 of this Article.”

• Thirdly, stipulating on handling on recovery of interest rate support amounts.

Specifically, Article 9 of Decree No. 31/2022/ND-CP stipulates: “Article 9. Handling on recovery of interest rate support amounts

1. In the process of implementation, in case it is discovered that a customer’s loan is determined not to be the subject, uses the loan for the wrong purpose or does not meet the conditions for interest rate support, the commercial bank shall notify customers and convert the interest-supported loan into a regular loan, and recover the entire amount of rate interest supported by commercial banks within 30 days from the date of notification.

2. Where the state budget has paid the interest rate support amount or has already settled the interest rate support for the loan specified in Clause 1 of this Article, the commercial bank shall refund the state budget or report to deduct from the amount of state budget payment of interest rate support.

3. In case the customer does not refund the interest rate supported amount as prescribed in Clause 1 of this Article, the commercial bank shall send a written request to the State Bank branch in the province or central city (where the customer’s head office is located) to report to the People’s Committee of the province or city to direct the competent authorities in the locality to coordinate with the commercial bank to recover the amount of interest rate support.”

1.2. Circular No. 03/2022/TT-NHNN guide commercial banks to implement interest rate support according to Decree No. 31/2022/ND-CP dated May 20, 2022 of the Government on interest rate support from the state budget for loans of enterprises, cooperatives, household business

• Name of legal document: Circular No. 03/2022/TT-NHNN issued on 20/05/2022 by the State Bank of Vietnam guide commercial banks to implement interest rate support according to Decree No. 31/2022/ND-CP dated May 20, 2022 of the Government on interest rate support from the state budget for loans of enterprises, cooperatives, household business (referred to as the “Circular No. 03/2022/TT-NHNN”).

• Effective date: 20/054/2022.

Some contents should be noted:

• Firstly, stipulating on principles of interest rate support loans.

Specifically, clause 3 Article 1 of Circular No. 03/2022/TT-NHNN stipulates: “Article 2. Principles of interest rate support loans

Commercial banks provide loans with interest rate support in accordance with the current law on lending activities of credit institutions and foreign bank branches to customers, as stipulated in Decree No. 31/ 2022/ND-CP, this Circular and relevant laws.”

• Secondly, stipulating on methods of interest rate support.

Specifically, Article 3 of Circular No. 03/2022/TT-NHNN stipulates: “Article 3. Methods of interest rate support

By the time of repayment of each interest payment term, commercial banks may choose to provide interest rate support to customers by one of the following methods:

1. Directly deduct the amount of loan interest payable by the customer equal to the interest rate supported loan amount.

2. Collect the entire loan interest from the customer in the period and refund the customer the interest supported loan amount on the same day of interest collection. In case the collection of loan interest in the period is performed after business hours of the commercial bank, the refund of the interest supported loan amount can be done on the next day.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/04/2022

1.1. Circular No. 27/2021/TT-NHNN amending and supplementing a number of articles of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 and the Financial reporting regime for credit institutions issued together with Decision No. 16/2007/QD-NHNN dated April 18, 2007 of the Governor of the State Bank of Vietnam

• Name of legal document: Circular No. 27/2021/TT-NHNN issued on 31/12/2022 by the State Bank of Vietnam amending and supplementing a number of articles of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 and the Financial reporting regime for credit institutions issued together with Decision No. 16/2007/QD-NHNN dated April 18, 2007 of the Governor of the State Bank of Vietnam (referred to as the “Circular No. 27/2021/TT-NHNN”).

• Effective date: 01/04/2022.

Some contents should be noted:

• Firstly, replacing some phrases of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 by the Governor of the State Bank (amended and supplemented).

Specifically, clause 3 Article 1 of Circular No. 27/2021/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 by the Governor of the State Bank (amended and supplemented by Circular No. 10/2014/TT-NHNN dated March 20, 2014, Circular No. 49/2014/TT-NHNN dated December 31, 2014, Circular No. 22/2017/ TT-NHNN dated December 29, 2017)

…

3. Replacing some phrases of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 by the Governor of the State Bank (amended and supplemented) as follows:a) Replacing the phrase “Balance sheet” with the phrase “Report of financial position” in Decision No. 479/2004/QD-NHNN (amended and supplemented);b) Replacing the phrase “to ensure that payment and credit service provision activities are performed according to signed contracts and commitments” with the phrase “to ensure the performance of obligations in accordance with regulations of law” in the accounting content of account 427- Deposit in Viet Nam Dong, account 428- Deposit in foreign currency specified in Decision No. 479/2004/QD-NHNN (amended and supplemented);c) Replacing the phrase “lost” with the phrase “risks have been dealt with”, the phrase “loss debt” becomes “risk-resolved debt” in account 97- Bad debts settled at Section II- System of accounting accounts and accounting contents of accounts 97- Bad debts handled in Section III- Accounting contents of accounts specified in Decision No. 479/2004/QD-NHNN (amended and supplemented).”

• Secondly, abrogating a number of provisions in Circular No. 10/2014/TT-NHNN dated March 20, 2014 amending and supplementing a number of accounts in the System of accounting accounts of credit institutions issued under Decision No. 479/2004/QD-NHNN dated April 29, 2004 by the Governor of the State Bank and Circular No. 22/2017/TT-NHNN dated December 29, 2017 amending and supplementing a number of articles of the System of accounting accounts of credit institutions promulgated together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 and Financial reporting regime for credit institutions issued together with Decision No. 16/ 2007/QD-NHNN dated 18/4/2007 of the Governor of the State Bank.

Specifically, Article 3 of Decision No. 422/QD-NHNN stipulates: “Article 3. Abrogating

1. Abrogating Clauses 5, 14, 25 Article 3 of Circular No. 10/2014/TT-NHNN dated March 20, 2014 amending and supplementing a number of accounts in the System of accounting accounts of credit institutions issued under Decision No. 479/2004/QD-NHNN dated April 29, 2004 of the Governor of the State Bank.

2. Abrogating Point c, point h (i) Clause 2 Article 1 of Circular No. 22/2017/TT-NHNN dated December 29, 2017 amending and supplementing a number of articles of the System of accounting accounts of credit institutions issued together with Decision No. 479/2004/QD-NHNN dated April 29, 2004 and Financial reporting regime for credit institutions issued together with Decision No. 16/2007/QD-NHNN dated April 18, 2007 by the Governor of the State Bank.”

1.2. Circular No. 24/2021/TT-NHNN amending and supplementing to some articles of Circular No. 39/2011/TT-NHNN December 15, 2011 of the Governor of the State bank of Vietnam providing independent audit of credit institutions and foreign bank branches

• Name of legal document: Circular 24/2021/TT-NHNN issued on 31/12/2021 by the State Bank of Vietnam amending and supplementing to some articles of Circular No. 39/2011/TT-NHNN December 15, 2011 of the Governor of the State bank of Vietnam providing independent audit of credit institutions and foreign bank branches (referred respectively to as the “Circular No. 24/2021/TT-NHNN” and “Circular No. 39/2011/TT-NHNN”).

• Effective date: 15/04/2022.

The content should be noted: Amending and supplementing regulations on contents with at least in independent audit of operations of the internal control system of credit institutions and foreign bank branches.

Specifically, Clause 2 Article 1 of Circular No. 24/2021/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 39/2011/TT-NHNN

…

2. Amending and supplementing Clause 2, Article 8 as follows:

“2. Independently audit the operation of the internal control system of a credit institution or foreign bank branch with at least the following contents:

a) Auditing the internal control system of credit institutions, foreign bank branches (including internal mechanisms, policies, processes and regulations) in compliance with current law provisions and regulations of the State Bank on the internal control system of credit institutions and foreign bank branches.

For the contents of the internal control system that have been audited for compliance without any change, such content is not required to be re-audited;

b) Auditing the operation of the internal control system for the preparation and presentation of financial statements;

c) In addition to the audit contents specified at Points a and b of this Clause, the commercial bank or foreign bank branch must audit the operation of the internal control system for the content of the internal assessment on the sufficient capital level of commercial banks and foreign bank branches in accordance with the State Bank’s regulations on internal control system.””

2. LEGAL DOCUMENTS ARE ISSUED IN 03/2022

Decision No. 422/QD-NHNN issuing the Action plan of the banking industry implementation of the Government’s Resolution No.11/NQ-CP dated January 30, 2022

• Name of legal document: Decision No. 422/QD-NHNN issued on 18/03/2022 by the State Bank of Vietnam issuing the Action plan of the banking industry implementation of the Government’s Resolution No.11/NQ-CP dated January 30, 2022 (referred to as the “Decision No. 422/QD-NHNN”).

• Effective date: 18/03/2022.

The content should be noted: Regulation on organization of implementation ofr credit institutions and foreign bank branches.

Specifically, Item 2 Part III of Decision No. 422/QD-NHNN stipulates: “III. ORGANIZATION OF IMPLEMENTATION

…

2. Credit institutions, foreign bank branches

2.1. Continuing to drastically implement measures to support customers affected by the COVID-19 epidemic to ensure the right regulations and right subjects. In particular, focusing on classifying customers affected by the COVID-19 epidemic and assessing the full repayment ability of customers to ensure that the support is appropriate to the level of impact of the epidemic. Prioritize and focus on lending to industries and sectors that are encouraged, serving production, import-export, international payment, etc., according to the socio-economic development orientation approved by the Party, National Assembly, Government and the Prime Minister to create favorable conditions for enterprises and people to access credit sources to restore production and business after the COVID-19 epidemic.

2.2. Improving financial capacity, strictly implement the direction of the State Bank in Directive No. 01/CT-NHNN in 2022 and 2023 on minimizing operating costs, reducing profit targets, paying dividends, increasing strengthen risk provisioning to strive to continue to reduce lending interest rates as prescribed in point 1, Section II of this Action Plan, and at the same time improve resisting ability for negative and unpredictable impacts of the COVID-19 epidemic.

2.3. Researching and deploying appropriate payment service fee exemption and reduction policies to support enterprises and people facing difficulties due to the impact of the COVID-19 epidemic. At the same time, strictly and regularly supervising and inspecting the observance of the provisions of the law on interest rates and lending fees. Actively reviewing and promptly detecting violations to take appropriate handling measures.

2.4. Strictly controlling credit quality, minimizing bad debt arising, especially in potentially risky fields; promptly detecting and strictly handling violations of laws and internal regulations in credit extension activities; balancing capital sources, using capital for medium and long-term loans, especially strictly controlling credit granting for the purposes of investment, real estate business, BOT, BT transport, investment in corporate bonds…; ensure liquidity and strictly comply with regulations on safety limits and ratios in banking activities and relevant laws.

2.5. Implementing drastically measures to recover bad debts, debts that have used provisions to handle risks, minimize losses for credit institutions, ensure the legitimate interests of the State, shareholders and depositors. Continuing to comprehensively apply solutions to handle bad debts according to Resolution No. 42/2017/QH14 in order to quickly and effectively handle bad debts.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/02/2022

1.1. Circular No. 25/2021/TT-NHNN amending and supplementing a number of articles of Circular No. 01/2015/TT-NHNN dated January 6, 2015 defining trading, supply of interest rate derivative products of commercial banks, branches of foreign banks

• Name of legal document: Circular 25/2021/TT-NHNN issued on 31/12/2021 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 01/2015/TT-NHNN dated January 6, 2015 defining trading, supply of interest rate derivative products of commercial banks, branches of foreign banks (referred respectively to as the “Circular No. 25/2021/TT-NHNN” and “Circular No. 01/2015/TT-NHNN”).

• Effective date: 14/02/2022.

The content should be noted: Adding provisions on defining trading, supply of interest rate derivative products by electronic means

Specifically, Clause 4 Article 1 of Circular No. 25/2021/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 01/2015/TT-NHNN

…

4. Adding Article 4a as follows:

“Article 4a. Defining trading, supply of interest rate derivative products by electronic means

1. Commercial banks, foreign bank branches defining trading and supplying interest rate derivative products by electronic means must develop a business process for providing interest rate derivative products by electronic means in accordance with the provisions of this Circular, the provisions of the law on prevention and combat of money laundering, the law on electronic transactions and relevant legal provisions, ensuring the safety and confidentiality of customer information and safe operation of commercial banks and foreign bank branches.

2. Commercial banks and foreign bank branches must fully store information related to the defining trading and supply of interest rate derivatives by electronic means to serve the inspection, compare, settle tracing, complaints, disputes and provide information upon request from competent state management agencies.””

1.2. Circular No. 23/2021/TT-NHNN amendments to Circular No. 52/2018/TT-NHNN dated December 31, 2018 of Governor of State Bank of Vietnam prescribing credit rating of credit institutions and foreign bank branches

• Name of legal document: Circular 23/2021/TT-NHNN issued on 31/12/2021 by the State Bank of Vietnam amendments to Circular No. 52/2018/TT-NHNNdated December 31, 2018 of Governor of State Bank of Vietnam prescribing credit rating of credit institutions and foreign bank branches (referred respectively to as the “Circular No. 23/2021/TT-NHNN” and “Circular No. 52/2018/TT-NHNN”).

• Effective date: 15/02/2022.

The content should be noted: Amending and supplementing regulations on word interpretation in a number of clauses of Article 3 of Circular No. 52/2021/TTBYT-NHNN.

Specifically, Point a Clause 1 Article 1 of Circular No. 23/2021/TT-NHNN stipulates: “Article 1. Amendments to Circular No. 52/2018/TT-NHNN

1. Article 3 is amended as follows:a) Clauses 1, 2, 3, 4, 5 Article 3 are amended as follows:

“1. Capital adequacy ratio means an indicator that is calculated according to SBV’s regulations on prudential limits and ratios for operations of credit institutions and foreign bank branches (hereinafter referred to as “FBB”).

2. Tier 1 capital ratio means an indicator calculated according to the following provisions:

a) If a credit institution or FBB applies the capital adequacy ratio defined according to SBV’s regulations on prudential limits and ratios for operations of credit institutions and FBBs (excluding the Circular No. 41/2016/TT-NHNN dated December 30, 2016 and its amending and superseding documents (if any)), its tier 1 capital ratio shall be calculated adopting the following formula:

Standalone tier 1 capital and total standalone risk-weighted assets shall be calculated according to SBV’s regulations on prudential limits and ratios for operations of credit institutions and FBBs;

b) If a credit institution or FBB applies the capital adequacy ratio defined according to the Circular No. 41/2016/TT-NHNN , its tier 1 capital ratio shall be calculated adopting the following formula:

Where:

– RWA: Total credit risk-weighted assets

– KOR: Capital required for operational risks

– KMR: Capital required for market risks

Tier 1 capital, RWA, KOR, KMR shall be calculated according to the Circular No. 41/2016/TT-NHNN .

3. Debt restructured as potentially bad debt means the balance of debt which is not written off as bad debt at a credit institution or FBB as it is rescheduled or its interest is exempted or reduced and classification group to which it belongs remains unchanged.

4. Debts sold to VAMC as bad debts yet to be disposed of means bad debts which have been purchased using special bonds by VAMC (Vietnam Asset Management Company) and have yet to be disposed or recovered.

5. Customer with a large outstanding balance means a customer (except credit institutions and FBBs) having the outstanding balance making up at least 5% of the equity of a credit institution or FBB.  With regard to cooperative banks, customers with large outstanding balances include people’s credit funds that are their members.”.”

1.3. Circular No. 26/2022/TT-NHNN guiding foreign currency trading between the State Bank of Vietnam and credit institutions permitted to engage in foreign exchange

• Name of legal document: Circular 26/2021/TT-NHNN issued on 31/12/2021 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 (referred to as the “Circular No. 26/2021/TT-NHNN”).

• Effective date: 15/02/2022.

Some contents should be noted:

·        Firstly, stipulating on trading method.

Specifically, Article 8 of Circular No. 26/2022/TT-NHNN stipulates: “Article 8. Trading method

SBV shall perform foreign currency trade with permitted credit institutions which have foreign currency trading connection with the SBV via:

1. Spot trade.

2. Forward trade.

3. Foreign currency swap.

4. Foreign exchange option.

5. Other trading methods decided by SBV from time to time.”

• Secondly, stipulating on Instruments and languages of trade

Specifically, Article 8 of Circular No. 26/2022/TT-NHNN stipulates: “Article 10. Instruments and languages of trade

1. SBV shall trade with permitted credit institutions via online trading systems such as Refinitiv, Bloomberg, telephones, or other instruments decided by SBV from time to time.

2. Verified foreign currency trades on instruments under Clause 1 of this Article means the commitment is unchanged. Revision or cancellation must be agreed upon by both parties.

3. If foreign currency trade is performed via telephones, permitted credit institutions must make sure that telephones can record audio, store audio recording, and trace the agreed trade. Once the agreement is made via telephones, on the trade date, SBV and permitted credit institutions shall verify again via physical or electronic documents which will be signed by competent authorities.

4. Language used in trade across foreign currency trading instruments is Vietnamese or English.”

1.4. Circular No. 28/2021/TT-NHNN amendments to Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of the State bank of Vietnam on the issuance of licenses and the organization, operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Vietnam

• Name of legal document: Circular 28/2021/TT-NHNN issued on 31/12/2021 by the State Bank of Vietnam amendments to Circular No. 40/2011/TT-NHNNdated December 15, 2011 of the Governor of the State bank of Vietnam on the issuance of licenses and the organization, operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Vietnam (referred respectively to as the “Circular No. 28/2021/TT-NHNN” and “Circular No. 40/2011/TT-NHNN”).

• Effective date: 01/03/2022.

The content should be noted: Amending and supplementing regulations on principles for replacement of license and addition of activities to the license.

Specifically, Clause 2 Article 1 of Circular No. 28/2021/TT-NHNN stipulates: “Article 1. Amendments to Circular No. 40/2011/TT-NHNN

…

2. Amendments to Clause 3 Article 18a (amended by Clause 3 Article 1 of Circular No. 17/2017/TT-NHNN dated November 20, 2017 of the Governor of the State Bank of Vietnam on amendments to Circular No.40/2011/TT-NHNN):

“3. A commercial bank or FBB may perform the activities specified in Clause 26 Article 4 of the form in Appendix 01a and Clause 24 Article 4 of the form in Appendix 01b after obtaining the approval from the State Bank; procedures for application for addition of such activities to the License shall be carried out in accordance with specific regulations of the State Bank and other relevant law provisions.””

1.5. Circular No. 01/2022/TT-NHNN amendment to Circular No. 21/2013/TT-NHNN dated September 9, 2013 of Governor of State Bank of Vietnam on operation network of commercial banks

• Name of legal document: Circular 01/2022/TT-NHNN issued on 28/01/2022 by the State Bank of Vietnam amendment to Circular No. 21/2013/TT-NHNNdated September 9, 2013 of Governor of State Bank of Vietnam on operation network of commercial banks (referred respectively to as the “Circular No. 01/2022/TT-NHNN” and “Circular No. 21/2013/TT-NHNN”).

• Effective date: 15/03/2022.

The content should be noted: Amending and supplementing regulations on opening of operation of domestic branches and transaction offices.

Specifically, Clause 7 Article 1 of Circular No. 01/2022/TT-NHNN stipulates: “Article 1. Amendments to Circular No. 21/2013/TT-NHNN

…

7. Amendments to Article 14:

“Article 14. Opening of operation of domestic branches and transaction offices

1. Requirements for opening of domestic branches and transaction offices:a) Have the right to own or legally utilize head office of the branches and transaction offices; head office must ensure storage of instruments (except for transaction offices), convenience and safety for transactions and assets, be installed with security, protection systems, constant electricity and communication supply systems satisfactory to fire safety;b) Head office of branches where treasury is located must meet the standards of SBV. In case a commercial bank has more than one branch in the same province or central-affiliated city, at least one branch of the commercial bank must have cash treasury in accordance with regulations of SBV and the commercial bank must be responsible for transferring cash of branches without cash treasury to the branch with cash treasury at the end of each working day;c) Branches and transaction offices must be equipped with information technology system that is connected to the head office while transaction offices must be connected to supervisory branches; maintain continuous operations of information technology systems and databases in order to ensure safety and security for professional operations;d) Branches and transaction offices have the required managerial staff including branch directors, vice directors, directors of transaction offices or equivalent titles and professional employees;dd) Branch directors or equivalent titles (for cases of branch opening) must meet all standards and requirements under Clause 5 Article 50 of the Law on Credit Institutions.

2. Commercial banks shall submit reports on satisfaction of requirements for opening domestic branches and transaction offices to SBV braches where the domestic branches and transaction offices are located at least 15 days prior to the opening day.

3. Commercial banks shall carry out the opening for domestic branches and transaction offices after meeting requirements under Clause 1 of this Article and completing procedures for registering branch operation (when opening branches) or issuing notice on business facilities (when opening transaction offices) as per the law.

4. Within 7 working days prior to the expected opening day of domestic branches or transaction offices mentioned under this Article, commercial banks must announce on website of SBV and the commercial banks, a printed daily newspaper in 3 consecutive issues or online newspapers in Vietnam.””

1.6. Decision No. 177/QD-NHNN on the announcement of administrative procedures are amended, supplemented, replaced, and abolished in the field of banking establishment and operations performed at the Single Window Department under the management function of the State Bank of Vietnam

• Name of legal document: Decision No. 177/QD-NHNN issued on 21/02/2022 by the State Bank of Vietnam on the announcement of administrative procedures are amended, supplemented, replaced, and abolished in the field of banking establishment and operations performed at the Single Window Department under the management function of the State Bank of Vietnam (referred to as the “Decision No. 177/QD-NHNN”).

• Effective date: 15/03/2022.

The content should be noted: Abolishing the procedure of approving the change of the name of a domestic branch of a commercial bank and the procedure of approving the eligibility to open a domestic branch or transaction office of a commercial bank within the scope of management function of the State Bank of Vietnam.

Specifically, Item 3 Part 1 of Decision No. 177/QD-NHNN stipulates: “PART I. LIST OF ADMINISTRATION PROCEDURES

3. Lis of administration procedures abolished within the scope of management function of the State Bank of Vietnam

”

1.7. Circular No. 24/2021/TT-NHNN amending and supplementing to some articles of Circular No. 39/2011/TT-NHNN December 15, 2011 of the Governor of the State bank of Vietnam providing independent audit of credit institutions and foreign bank branches

• Name of legal document: Circular 24/2021/TT-NHNN issued on 31/12/2021 by the State Bank of Vietnam amending and supplementing to some articles of Circular No. 39/2011/TT-NHNN December 15, 2011 of the Governor of the State bank of Vietnam providing independent audit of credit institutions and foreign bank branches (referred respectively to as the “Circular No. 24/2021/TT-NHNN” and “Circular No. 39/2011/TT-NHNN”).

• Effective date: 15/04/2022.

The content should be noted: Amending and supplementing regulations on contents with at least in independent audit of operations of the internal control system of credit institutions and foreign bank branches.

Specifically, Clause 2 Article 1 of Circular No. 24/2021/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 39/2011/TT-NHNN

…

2. Amending and supplementing Clause 2, Article 8 as follows:

“2. Independently audit the operation of the internal control system of a credit institution or foreign bank branch with at least the following contents:

a) Auditing the internal control system of credit institutions, foreign bank branches (including internal mechanisms, policies, processes and regulations) in compliance with current law provisions and regulations of the State Bank on the internal control system of credit institutions and foreign bank branches.

For the contents of the internal control system that have been audited for compliance without any change, such content is not required to be re-audited;

b) Auditing the operation of the internal control system for the preparation and presentation of financial statements;

c) In addition to the audit contents specified at Points a and b of this Clause, the commercial bank or foreign bank branch must audit the operation of the internal control system for the content of the internal assessment on the sufficient capital level of commercial banks and foreign bank branches in accordance with the State Bank’s regulations on internal control system.””