1. LEGAL DOCUMENTS ARE ISSUED IN 08/2020

1.1. Decision No. 1349/QD-NHNN prescribing interest rates of required reserves and excess reserves of credit institutions and foreign bank branches at the State Bank of Vietnam

• Name of legal document: Decision No. 1349/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing interest rates of required reserves and excess reserves of credit institutions and foreign bank branches at the State Bank of Vietnam (referred to as the “Decision No. 1349/QD-NHNN”).

• Effective date: 06/08/2020.

Some contents should be noted:

• Firstly, providing interest rates of required reserves and excess reserves deposited by credit institutions and foreign bank branches at the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 1349/QD-NHNN stipulates: “Article 1. Interest rates of required reserves and excess reserves deposited by credit institutions and foreign bank branches at the State Bank of Vietnam are as follows:

1. The interest rate of required reserves deposited in Vietnam Dong: 0.5%/year.

2. The interest rate of required reserves deposited in foreign currency: 0%/year.

3. The interest rate of excess reserves deposited in Vietnam Dong: 0%/year.

4. The interest rate of excess reserves deposited in foreign currency: 0.05%/year.”

• Secondly, Decision No. 1349/QD-NHNN comes into force from August 06, 2020 and supersedes the Decision No. 421/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Article 2 of Decision No. 1349/QD-NHNN stipulates: “Article 2. This Decision comes into force from August 06, 2020 and supersedes the Decision No. 421/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing interest rates of required reserves and excess reserves deposited by credit institutions and foreign bank branches at the State Bank of Vietnam.”

1.2. Decision No. 1350/QD-NHNN prescribing interest rates of deposits in Vietnam dong made by Vietnam development bank, Vietnam bank for social policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam

• Name of legal document: Decision No. 1350/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing interest rates of deposits in Vietnam dong made by Vietnam development bank, Vietnam bank for social policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam (referred to as the “Decision No. 1350/QD-NHNN”).

• Effective date: 06/08/2020.

Some contents should be noted:

• Firstly, providing interest rates of deposits in Vietnam Dong made by Vietnam Development Bank, Vietnam Bank for Social Policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 1350/QD-NHNN stipulates: “Article 1. Interest rates of deposits in Vietnam Dong made by Vietnam Development Bank, Vietnam Bank for Social Policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam are as follows:

1. The interest rate of deposits made by Vietnam Development Bank: 0.8%/year.

2. The interest rate of deposits made by Vietnam Bank for Social Policies: 0.8%/year.

3. The interest rate of deposits made by people’s credit funds: 0.8%/year.

4. The interest rate of deposits made by microfinance institutions: 0.8%/year.”

• Secondly, Decision No. 1350/QD-NHNN comes into force from August 06, 2020 and supersedes the Decision No. 422/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Article 2 of Decision No. 1350/QD-NHNN stipulates: “Article 2. This Decision comes into force from August 06, 2020 and supersedes the Decision No. 422/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing interest rates of deposits in Vietnam Dong made by Vietnam Development Bank, Vietnam Bank for Social Policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam.”

1.3.  Decision No. 1351/QD-NHNN prescribing interest rates of deposits made by state treasury and deposit insurance of Vietnam at the State Bank of Vietnam

• Name of legal document: Decision No. 1351/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing interest rates of deposits made by state treasury and deposit insurance of Vietnam at the State Bank of Vietnam (referred to as the “Decision No. 1351/QD-NHNN”).

• Effective date: 06/08/2020.

Some contents should be noted:

·        Firstly, providing interest rates of deposits made by State Treasury and Deposit Insurance of Vietnam at the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 1351/QD-NHNN stipulates: “Article 1. Interest rates of deposits made by State Treasury and Deposit Insurance of Vietnam at the State Bank of Vietnam are as follows:

1. The interest rate of deposits in Vietnam Dong made by State Treasury: 0.8%/year.

2. The interest rate of deposits in foreign currency made by the State Treasury: 0.05%/year.

3. The interest rate of deposits in Vietnam Dong made by Deposit Insurance of Vietnam: 0.8%/year.”

• Secondly, Decision 1351/QD-NHNN comes into force from August 06, 2020 and supersedes the Decision No. 423/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Article 2 of Decision No. 1351/QD-NHNN stipulates: “Article 2. This Decision comes into force from August 06, 2020 and supersedes the Decision No. 423/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing interest rates of deposits made by State Treasury and Deposit Insurance of Vietnam at the State Bank of Vietnam.”

1.4. Circular No. 08/2020/TT-NHNN amending, supplementing to a number of articles of the Circular No.22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches

• Name of legal document: Circular No. 08/2020/TT-NHNN issued on 14/08/2020 by the Governor of the State Bank amending, supplementing to a number of articles of the Circular No.22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches (referred to as the “Circular No. 08/2020/TT-NHNN).

• Effective date: 01/10/2020.

The content should be noted: Amending and supplementing regulations on compliance with the maximum ratio of short-term capital for provision of medium-term and long-term loans according to the roadmap specified in Clause 5, Article 16 of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches.

Specifically, Article 1 Circular No. 08/2020/TT-NHNN stipulates: “Article 1. Amending, supplementing to a number of articles of the Circular No.22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches

Clause 5 Article 16 is amended, supplemented as follow:

“5. Banks and / or foreign bank branches must comply with the maximum ratio of short-term capital for provision of medium-term and long-term loans according to the following roadmap:

a) From January 1, 2020 to the end of September 30, 2021: 40%;

b) From October 1, 2021 to the end of September 30, 2022: 37%;

c) From October 1, 2022 to the end of September 30, 2023: 34%;

d) From October 1, 2023: 30%.””

1. LEGAL DOCUMENTS ARE ISSUED IN 07/2020

Official Letter No. 4923/TCHQ-TXNK regarding the selection of a commercial bank to be VAT refund agents for foreigners

• Name of legal document: Official Letter No. 4923/TCHQ-TXNK issued on 24/07/2020 by the General Department of Customs of the Ministry of Finance on regarding the selection of a commercial bank to be VAT refund agents for foreigners (referred to as the “Official Letter No. 4923/TCHQ-TXNK”).

• Effective date: 24/07/2020.

Some contents should be noted:

• Firstly, “General Department of Customs informs banks to know and request banks research to register as VAT refund agent for foreigners at Da Nang International Airport” and “Registration documents please send to the General Department of Customs before August 15, 2020”.

• Secondly, issuing an Appendix on the list of banks cooperating to collect, specifically:

“APPENDIX

LIST OF BANKS COOPERATING TO COLLECT
(Issued together with Official Letter No. 4923/TCHQ-TXNK dated July 24, 2020 of the General Department of Customs)

”

1. LEGAL DOCUMENTS ARE ISSUED IN 06/2020

Decision No. 1121/QD-NHNN on the amendment of the Circular No. 52/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam prescribing credit rating of credit institutions and foreign bank branches

• Name of legal document: Decision No. 1121/QD-NHNN issued on 22/06/2020 by the State Bank of Viet Nam on the amendment of the Circular No. 52/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam prescribing credit rating of credit institutions and foreign bank branches (referred to as the “Decision No. 1121/QD-NHNN”).

• Effective date: 22/06/2020.

Some contents should be noted:

• Firstly, correcting the phrase “The higher the value of a quantitative indicator, the higher the risk level”.

Specifically, Clause 2 Article 1 of Circular No. 52/2018/TT-NHNN stipulates: “Article 1. Correction of a number of technical errors prescribed in the Circular No. 52/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam regulating the classification of credit institutions and bank branches are as follows:

…

2. Article 14:

At ordinal number 2.5 The Table of Scoring benchmarks for specific quantitative indicators, correcting the phrase “The higher the value of a quantitative indicator, the higher the risk level” to “The higher the value of a quantitative indicator, the lower the risk level”.”

• Secondly, correcting technical errors in Article 16 of Circular No. 52/2018/TT-NHNN.

Specifically, Clause 2 Article 1 of Circular No. 52/2018/TT-NHNN stipulates: “Article 1. Correction of a number of technical errors prescribed in the Circular No. 52/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam regulating the classification of credit institutions and bank branches are as follows:

…

3. In Article 16 of Circular 52 printed:

“3. In case where credit institutions or foreign bank branches have yet to be or are not subject to…”

Now revised to: “4. In case where credit institutions or foreign bank branches have yet to be or are not subject to…””

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/06/2020

Circular No. 28/2020/TT-BTC annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance

• Name of legal document: Circular No. 28/2020/TT-BTC issued on 17/04/2020 by the Minister of Finance annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance (referred to as the “Circular No. 33/2020/TT-BTC”).

• Effective date: 02/06/2020.

The content should be noted: Annulling a number of legal documents promulgated by the Minister of Finance in the field of banking finance.

Specifically, Article 3 of Circular No. 28/2020/TT-BTC stipulates: “Article 3. Annulling all contents of 02 legal documents issued by the Minister of Finance in the field of banking and finance, as follow:

1. Circular No. 105/2007/TT-BTC on August 30, 2007 of the Ministry of Finance guiding on handling of risk for investment credit capital and export credit of the State.

2. Circular No. 35/2012/TT-BTC on March 2, 2012 of the Ministry of Finance guiding a number of articles of Decree No. 75/2011/ND-CP on August 30, 2011 of the Government on the investment credit and export credit of State.”

2. LEGAL DOCUMENTS ARE ISSUED IN 05/2020

2.1. Decision No. 918/QD-NHNN refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the Sate Bank of Vietnam 

• Name of legal document: Decision No. 918/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the Sate Bank of Vietnam  (referred to as the “Decision No. 918/QD-NHNN”).

• Effective date: 13/05/2020.

Some contents should be noted:

• Firstly, stipulating the interest rates are adopted by the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 918/QD-NHNN stipulates: “Article 1. The following interest rates are adopted by the State Bank of Vietnam, including:

1. Refinancing interest rate:  4.5%/year.

2. Re-discount interest rate: 3.0%/year.

3. Interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the state bank of Vietnam: 5.5%/year.”

• Secondly, Decision No. 918/QD-NHNN supersedes the Decision No. 418/QD-NHNNdated March 16, 2020 by of the Governor of the State Bank of Vietnam.

Specifically, Article 2 of Decision No. 918/QD-NHNN stipulates: “Article 2. This Decision comes into force from May 13, 2020 and supersedes the Decision No. 418/QD-NHNN dated March 16, 2020 by of the Governor of the State Bank of Vietnam on refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the State Bank of Vietnam.”

2.2. Decision No. 919/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 No. 919/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam 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  (referred to as the “Decision No. 919/QD-NHNN”).

• Effective date: 13/05/2020.

Some contents should be noted:

• Firstly, stipulating maximum interest rates of deposits in Vietnam Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNNdated March 17, 2014.

Specifically, Article 1 Decision No. 919/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 foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:

1. The maximum interest rate of demand deposits and deposits with term less than 1 month is 0.2%/year.

2. The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4.25%/year; in particular, people’s credit funds and microfinance institutions shall adopt the maximum interest rate of 4.75%/year with respect to deposits with a term from 1 month to less than 6 months.”

• Secondly, Decision No. 919/QD-NHNN supersedes the Decision No. 419/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Clause 1 Article 2 of Decision No. 919/QD-NHNN stipulates: “Article 2. 

1. This Decision comes into force from May 13, 2020 and supersedes Decision No. 419/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing 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.”

2.3. Decision No. 920/QD-NHNN prescribing maximum interest rates of short-term loans in vietnam dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNN dated December 30, 2016

• Name of legal document: Decision No. 920/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam prescribing maximum interest rates of short-term loans in vietnam dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNNdated december 30, 2016  (referred to as the “Decision No. 920/QD-NHNN”).

• Effective date: 13/05/2020.

Some contents should be noted:

• Firstly, stipulating maximum interest rates of short-term loans in Vietnam Dong according to Clause 2 Article 13 of the Circular No. 39/2016/TT-NHNN dated December 30, 2016.

Specifically, Article 1 of Decision No. 920/QD-NHNN stipulates: “Article 1. Maximum interest rates of short-term loans in Vietnam Dong according to Clause 2 Article 13 of the Circular No. 39/2016/TT-NHNN dated December 30, 2016 are as follows:

1. Credit institutions and foreign bank branches (except people’s credit funds and microfinance institutions) shall offer short-term loans in Vietnam Dong with the maximum interest rate of 5.0%/year.

2. People’s credit funds and microfinance institutions shall offer short-term loans in Vietnam Dong with the maximum interest rate of 6.0%/year.”

• Secondly, Decision No. 920/QD-NHNN supersedes Decision No. 420/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Clause 1 Article 2 of Decision No. 920/QD-NHNN stipulates: “Article 2. 

1. This Decision comes into force from May 13, 2020 and supersedes Decision No. 420/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing maximum interest rates of short-term loans in Vietnam Dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNN dated December 30, 2016.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/05/2020

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

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

• Effective date: 01/05/2020.

Some contents should be noted:

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

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

1. Article 3 is amended and supplemented as follows:

“Article 3. Cash withdrawal fee at the State Bank

1. Credit institutions, branches of foreign banks are exempted from cash withdrawal in the month when the value of cash withdrawn via payment accounts is less than or equal to cash value which is not eligible for circulation are submitted to the State Bank where the account is opened.
   

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

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

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

…

“2. To add Article 3a as follows:

Article 3a. Methods of collecting cash withdrawal fee

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

1.2. Circular No. 33/2020/TT-BTC regulating on the level of collection and payment of the fee for granting the establishment and operation of banks, non-bank credit institutions

• Name of legal document: Circular No. 33/2020/TT-BTC issued on 05/05/2020 by the Ministry of Finance regulating on the level of collection and payment of the fee for granting the establishment and operation of banks, non-bank credit institutions (referred to as the “Circular No. 33/2020/TT-BTC”).

• Effective date: 05/05/2020.

The content should be noted: providing on the level of collection and payment of the fee for granting the establishment and operation of banks, non-bank credit institutions.

Specifically, Article 1 of Circular No. 33/2020/TT-BTC stipulates: “Article 1. Levels of collection and payment of fees for granting establishment and operation licenses to banks and non-bank credit institutions

Organizations that are granted the license of establishment and operation of bank, the license of establishment and operation license of a non-bank credit institution by a competent state agency shall pay the following fees:

1. From May 5, 2020 to the end of December 31, 2020, pay the fee equal to 50% of the fee rate prescribed at Points a and b, Section 1 of the Table of fee rates in Clause 1, Article 4 of Circular No. 150/2016/TT-BTC dated on October 14, 2016 of the Minister of Finance stipulating the level, regime of collection, payment of fees for granting establishment and operation licenses of credit institutions; licenses for establishment of foreign bank branches, representative offices of foreign credit institutions and other foreign organizations engaged in banking activities; license for providing intermediary payment services for non-bank organizations (hereinafter referred to as Circular No. 150/2016/TT-BTC).

During the effective time of this Circular, no fee for the establishment and operation license of banks and non-bank credit institutions must be paid at the level specified in Clause 1, Article 4 of Circular No. 150/2016/TT-BTC.

2. From January 1, 2021 onwards, pay the fee for the establishment and operation license of banks and non-bank credit institutions according to the levels prescribed in Clause 1, Article 4 of Circular No. 150/2016/TT-BTC.”

2. LEGAL DOCUMENTS ARE ISSUED IN 04/2020

2.1. Circular No. 28/2020/TT-BTC annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance

• Name of legal document: Circular No. 28/2020/TT-BTC issued on 17/04/2020 by the Minister of Finance annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance (referred to as the “Circular No. 33/2020/TT-BTC”).

• Effective date: 02/06/2020.

The content should be noted: Annulling a number of legal documents promulgated by the Minister of Finance in the field of banking finance.

Specifically, Article 3 of Circular No. 28/2020/TT-BTC stipulates: “Article 3. Annulling all contents of 02 legal documents issued by the Minister of Finance in the field of banking and finance, as follow:

1. Circular No. 105/2007/TT-BTC on August 30, 2007 of the Ministry of Finance guiding on handling of risk for investment credit capital and export credit of the State.

2. Circular No. 35/2012/TT-BTC on March 2, 2012 of the Ministry of Finance guiding a number of articles of Decree No. 75/2011/ND-CP on August 30, 2011 of the Government on the investment credit and export credit of State.”

2.2. Consolidated Document No. 07/VBHN-NHNN promulgating the Fee Schedule for payment services via the State Bank of Viet Nam

• Name of legal document: Consolidated Document No. 07/VBHN-NHNN issued on 07/04/2020 by the State Bank of Viet Nam promulgating the Fee Schedule for payment services via the State Bank of Viet Nam (referred to as the “Consolidated Document No. 07/VBHN-NHNN”).

• Issuing date: 07/04/2020.

The contents should be noted: Consolidated Document No. 07/VBHN-NHNN consolidates the provisions of the following documents:

• Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the Governor of the State Bank of Vietnam promulgating the tariff of charges for payment services offered via the state bank of Viet Nam, effective from April 1, 2014;

• Circular No. 33/2018/TT-NHNN dated December 21, 2018 of the Governor of the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the Governor of the State Bank of Vietnam promulgating the tariff of charges for payment services offered via the state bank of Viet Nam, effective from November 1, 2019; and

Circular No. 04/2020/TT-NHNN dated March 31, 2020 of the Governor of the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the Governor of the State Bank of Vietnam promulgating the tariff of charges for payment services offered via the state bank of Viet Nam, effective from April 1, 2020.

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/04/2020

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

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

• Effective date: 01/04/2020.

Some contents should be noted:

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

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

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

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

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

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

…. ”

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

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

…

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

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

1.2. Circular No. 04/2020/TT-NHNN amending and supplementing a number of articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the State Bank of Viet Nam promulgating the tariff of charges for payment services offered via the state bank of Viet Nam

• Name of legal document: Circular No. 04/2020/TT-NHNN issued on 31/03/2020 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the State Bank of Viet Nam promulgating the tariff of charges for payment services offered via the state bank of Viet Nam (referred to as the “Circular No. 01/2020/TT-NHNN”).

• Effective date: 01/04/2020.

The content should be noted: providing on reduction of payment fees via the inter-bank electronic payment system.

Specifically, Article 1 of Circular No. 04/2020/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 26/2013/TT-NHNN as follows:

Article 1a is added as follows:

“Article 1a. Reducing 50% on payment fees at Points 1.1 and 1.2, Section 1 “Charge for payment transactions performed via the eIPS” in Part III “In-country payment service charge” Tariff of charges for payment services offered via the State Bank of Viet Nam issued together with this Circular (Circular No. 26/2013 / TT-NHNN) from April 1, 2020 to December 31, 2020.”.”

2. LEGAL DOCUMENTS ARE ISSUED IN 03/2020

2.1. Circular No. 01/2020/TT-NHNN debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-19 pandemic

• Name of legal document: Circular No. 01/2020/TT-NHNN issued on 13/03/2020 by the State Bank of Viet Nam debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-19 pandemic (referred to as the “Circular No. 01/2020/TT-NHNN”).

• Effective date: 13/03/2020.

Some contents should be noted:

• Firstly, providing on debt rescheduling.

Specifically, Article 4 of Circular No. 01/2020/TT-NHNN stipulates: “Article 4. Debt rescheduling

1. An outstanding debt, including the principal and/or interest (including the debts regulated by the Government’s Decree No. 55/2015/ND-CP) may be rescheduled if it fully satisfies the following conditions:

a) The debt is a loan or finance lease;

b) The principal and/or interest arises during the period from 23/01/2020 to the day after 03 months after the day on which the Prime Minister declares the end of the Covid-19 outbreak;

c) The borrower is unable to repay the principal and/or interest under the loan/finance lease agreement due to decrease in revenue caused by Covid-19 pandemic.

2. The debts mentioned in Clause 1 of this Article shall be rescheduled in the following cases:

a) The unpaid debt is undue or up to 10 days overdue according to the loan/finance lease agreement;

b) The debt is overdue (except for the cases in Point a of this Clause) during the period from 23/01/2020 to the 16th day from the effective date of this Circular (Circular No. 01/2020/TT-NHNN).

3. Credit institutions and FBBs shall decide the rescheduling of debts cases specified in Clause 1 and Clause 2 of this Article in consideration of the borrowers’ request and ability to fully repay the principal and/or interest after the debt is rescheduled. The rescheduling shall be suitable for the impacts of Covid-19 and follow these rules:

a) Debts that violate regulations of law shall not be rescheduled.

b) The debt shall not be deferred for more than 12 months from the initial repayment deadline according to the loan/finance lease agreement.”

• Secondly, providing on reduction and exemption of interest and/or fees.

Specifically, Article 5 of Circular No. 01/2020/TT-NHN stipulates: “Article 5. Reduction and exemption of interest and/or fees

Credit institutions and FBBs shall, according to their own rules and regulations, decide reduction and exemption of interest and/or fees on extension of the debts (except purchases of corporate bonds) that are due during the period from 23/01/2020 to the day after 03 months after the Prime Minister declares the end of the Covid-19 outbreak and the borrowers are not able to repay the principal and/or interest by the deadline specified in the original agreement due to decrease in revenue caused by Covid-19.”

• Thirdly, providing on Retention of debt category

Specifically, Article 6 of Circular No. 01/2020/TT-NHNN stipulates: “Article 6. Retention of debt category

1. Credit institutions and FBBs may retain the categories of the following debts if they have been categorized in accordance with regulations of the State bank of Vietnam (SBV) before 23/01/2020:

a) The debts that are rescheduled as prescribed in Article 4 of this Circular (Circular No. 01/2020/TT-NHNN);

b) The outstanding debts on which interest is exempted or reduced as prescribed in Article 5 of this Circular (Circular No. 01/2020/TT-NHNN);

c) The outstanding debts mentioned in Point a and Point b of this Clause, including the debts that are rescheduled, have interest reduced or exempt, or re-categorized as prescribed by SBV during the period from 23/01/2020 to the 16th day after the effective date of this Circular.

2. Credit institutions and FBBs shall classify and make bad debt provision for the debts mentioned in Clause 1 of this Article according to their rescheduled term without having to put them into a higher-risk category.

3. From the rescheduling date, credit institutions and FBBs are not required to record the interests on the outstanding debts that are rescheduled, debts on which interest is reduced or exempted, debts that remain current non-performing loans (Group 1) as prescribed in this Circular (Circular No. 01/2020/TT-NHNN) as revenue. Instead, they shall be monitored off-balance sheet and recorded as revenue when they are collected in accordance with regulations of law.

2.2. Decision No. 418/QĐ-NHNN on the interest rates for deposits in Vietnamese Dong of Viet Nam Development Bank, Social Policy Bank, People’s Credit Funds, and microfinance institutions at the State Bank of Viet Nam

• Name of legal document: Decision No. 418/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on the refinancing interest rate, rediscount interest rate, overnight lending interest rate in inter-bank electronic payment and lending capital to offset the shortage of capital in the clearing of the State Bank of Vietnam for the banks (referred to as the “Decision No. 418/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on the interest rates of the State Bank of Viet Nam.

Specifically, Article 1 Decision No. 422/QĐ-NHNN stipulates: “Article 1. Stipulation on the interest rates of the State Bank of Viet Nam as follows:

1. Refinancing interest rate: 5.0%/year.

2. Rediscount interest rate: 3.5%/year.

3. Overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in clearing of the State Bank of Viet Nam for banks: 6.0%/year.”

2.3. Decision No. 419/QĐ-NHNN on maximum interest rate for Vietnamese Dong deposits of organizations and individuals at credit institutions and branches of foreign bank as prescribed in Circular No. 07/2014/TT-NHNN of March 17, 2014

• Name of legal document: Decision No. 419/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on maximum interest rate for Vietnamese Dong deposits of organizations and individuals at credit institutions and branches of foreign bank as prescribed in Circular No. 07/2014/TT-NHNN[1] of March 17, 2014 (referred to as the “Decision No. 419/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on maximum interest rates for Vietnamese Dong deposits of organizations (except for credit institutions, branches of foreign bank) and individuals at credit institutions and branches of foreign bank according to Circular No. 07/2014/TT-NHNN of March 17, 2014.

Specifically, Article 1 Decision No. 422/QĐ-NHNN stipulates: “Article 1. Maximum interest rates for Vietnamese Dong deposits of organizations (except for credit institutions, branches of foreign bank) and individuals at credit institutions and branches of foreign bank according to Circular No. 07/2014/TT-NHNN of March 17, 2014 are as follows:

1. The maximum interest rate applicable to demand deposits and terms with 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; Particularly for People’s Credit Funds and Microfinance Institutions, the maximum interest rate applicable to deposits with a term of between 1 month and under 6 months shall be 5.25%/year.”

2.4. Decision No. 420/QĐ-NHNN on the maximum interest rates for short-term loans in Vietnamese Dong of credit institutions and branches of foreign bank to borrowers to meet the capital demand in service of a number of economic sectors and industries according to regulations. in Circular No. 39/2016/TT-NHNN dated December 30, 2016

• Name of legal document: Decision No. 420/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on the maximum interest rates for short-term loans in Vietnamese Dong of credit institutions and branches of foreign bank to borrowers to meet the capital demand in service of a number of economic sectors and industries according to regulations in Circular No. 39/2016/TT-NHNN[2] dated December 30, 2016 (referred to as the “Decision No. 420/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on on maximum interest rates for short-term loans in Vietnamese Dong that credit institutions and customers agree to meet a number of certain demands for borrowed fund.

Specifically, Article 1 Decision No. 420/QĐ-NHNN stipulates: “Article 1. Maximum interest rates for short-term loans in Vietnamese dong as prescribed in Clause 2, Article 13[3] of Circular No. 39/2016/TT-NHNN dated December 30, 2016 are as follows:

1. Credit institutions and foreign bank branches (except for People’s Credit Funds and Microfinance Institutions), which apply the maximum short-term lending interest rate in Vietnamese Dong, shall be 5.5%/year.

2. People’s credit funds and Microfinance Institutions apply the maximum interest rate for short-term loans in Vietnam dong at 6.5%/year. “”

2.5. Decision No. 421/QĐ-NHNN on interest rates of compulsory reserve deposits and deposits in excess of compulsory reserves of credit institutions and branches of foreign bank at the State Bank of Viet Nam

• Name of legal document: Decision No. 421/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on interest rates of compulsory reserve deposits and deposits in excess of compulsory reserves of credit institutions and branches of foreign bank at the State Bank of Viet Nam (referred to as the “Decision No. 421/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on interest rates applicable to compulsory reserve deposits and deposits exceeding the compulsory reserves of credit institutions and branches of foreign bank at the State Bank of Vietnam.

Specifically, Article 1 Decision No. 421/QĐ-NHNN stipulates: “Article 1. The interest rates applicable to compulsory reserve deposits and deposits exceeding the compulsory reserves of credit institutions and branches of foreign bank at the State Bank of Vietnam are as follows:

1. For compulsory reserve deposits in Vietnamese Dong: 1.0%/year.

2. For compulsory reserve deposits in foreign currencies: 0%/year.

3. For deposits exceeding the compulsory reserve in Vietnamese Dong: 0%/year.

4. For deposits exceeding compulsory reserves in foreign currencies: 0.05%/year.”

2.6. Decision No. 422/QĐ-NHNN on the interest rates for deposits in Vietnamese Dong of Viet Nam Development Bank, Social Policy Bank, People’s Credit Funds, and microfinance institutions at the State Bank of Viet Nam

• Name of legal document: Decision No. 422/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on the interest rates for deposits in Vietnamese Dong of Viet Nam Development Bank, Social Policy Bank, People’s Credit Funds, and microfinance institutions at the State Bank of Viet Nam (referred to as the “Decision No. 422/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on interest rates applicable to Vietnamese Dong deposits of Viet Nam Development Bank, Social Policy Bank, People’s Credit Funds, microfinance institutions at the State Bank of Viet Nam.

Specifically, Article 1 Decision No. 422/QĐ-NHNN stipulates: “Article 1. Interest rates applicable to Vietnamese Dong deposits of Viet Nam Development Bank, Social Policy Bank, People’s Credit Funds, microfinance institutions at the State Bank of Viet Nam as follows:

1. For deposits of Viet Nam Development Bank: 1.0%/year.

2. For deposits from Vietnam Bank for Social Policies: 1.0%/year.

3. For deposits of People’s Credit Funds: 1.0%/year.

4. For deposits of microfinance institutions: 1.0%/year.”

2.7. Decision No. 423/QĐ-NHNN on the deposit interest rates of the State Treasury, Viet Nam Deposit Insurance at the State Bank of Viet Nam

• Name of legal document: Decision No. 423/QĐ -NHNN issued on 16/03/2020 by the State Bank of Viet Nam on the deposit interest rates of the State Treasury, Viet Nam Deposit Insurance at the State Bank of Viet Nam (referred to as the “Decision No. 423/QĐ-NHNN”).

• Effective date: 17/03/2020.

The contents should be noted: providing on interest rates applicable to deposits of the State Treasury, Viet Nam Deposit Insurance at the State Bank of Viet Nam.

Specifically, Article 1 Decision No. 423/QĐ-NHNN stipulates: “Article 1. The interest rates applicable to deposits of the State Treasury, Viet Nam Deposit Insurance at the State Bank of Viet Nam are as follows:

1. For Vietnamese Dong deposits of the State Treasury: 1.0%/year.

2. For deposits in foreign currencies of the State Treasury: 0.05%/year.

3. For Vietnamese Dong deposits of Viet Nam Deposit Insurance: 1.0%/year.”

[1] Circular No. 07/2014/TT-NHNN issued on 17/03/2014 of the State Bank of Viet Nam providing for the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions

[2] Circular No. 39/2016/TT-NHNN issued on December 30, 2016 of the State Bank of Viet Nam prescribing lending transactions of credit institutions and/or foreign bank branches with customers

[3] Clause 2 Article 13 of Circular No. 39/2016: “Article 13. Loan interest rate

…

2. A credit institution and customer shall agree on the interest rate on short-term loan denominated in Vietnamese dong but shall not allow it to exceed the maximum interest rate decided by the State Bank’s Governor over periods of time in order to meet certain demands for borrowed fund as follows:

a) Loans taken out to support the agricultural and rural development sector under regulations of the Government on credit policies for agricultural and urban development;

b) Loans taken out to implement the export business plan in accordance with the Law on Commerce and other instructional directives thereof;

c) Loans taken out to finance business activities of small and medium-sized enterprises under the Government’s regulations on support for development of small and medium-sized enterprises;

d) Loans taken out to develop ancillary industries under the Government’s regulations on development of ancillary industries;

dd) Loans taken out to finance business operations of high technology application enterprises under the provisions of the Law on High Technology and other instructional directives thereof.”