1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/08/2019

1.1. Circular No. 08/2019/TT-NHNN amending and supplementing a number of articles of Circular No. 03/2015/TT-NHNN dated March 20th, 2015 of the Governor of the State Bank of Vietnam guiding the implementation of a number of articles of Decree No. 26/2014/ND-CP on April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

• Name of legal document: Circular No. 08/2019/TT-NHNN issued on 04/07/2019 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 03/2015/TT-NHNN dated March 20th, 2015 of the Governor of the State Bank of Vietnam guiding the implementation of a number of articles of Decree No. 26/2014/ND-CP on April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities (hereinafter referred to as the “Circular No. 08/2019/TT-NHNN”)

• Effective date: 19/08/2019.

Some contents should be noted:

• Firstly, amending and supplementing regulations on assignment of inspection responsibilities to the inspected entities.

Specifically, Clause 1 Article 1 of Circular No. 08/2019/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 03/2015/TT-NHNN

1. Article 4 is amended and supplemented as follows:

“Article 4. Assignment of inspection responsibilities to inspected entities

1. The Central Banking Inspection and Supervision Authorities shall have to inspect according to provisions of law on the following inspected entities:

a) Agencies, organizations and individuals under the management of the State Bank, except those managed by the State Bank branch under the assignment of the State Bank Governor;

b) Commercial banks with 100% charter capital owned by the State;

c) Policy bank;

d) Cooperative bank;

dd) Joint venture bank;

e) Banks with 100% foreign capital;

g) A number of branches of foreign banks as assigned by the Governor of the State Bank;

h) Joint stock commercial bank;

i) Non-bank credit institutions;

k) Microfinance institutions;

l) A number of microfinance programs and projects as assigned by the Governor of the State Bank;

m) Organizing of credit information activities;

n) Vietnam Asset Management Company;

o) Deposit Insurance of Vietnam;

p) National Banknote Printing Plant;

q) National Payment Corporation of Viet Nam;

r) Subsidiaries of credit institutions stipulated in Points b, d, dd, e and h of this Clause where this subsidiary is not a credit institution but under the inspection responsibility of the State Bank, except for entities under the inspection responsibility of the State Bank branch’s inspection and supervision;

s) The entities of inspection under the inspection responsibility of the State Bank branch’s inspection and supervision in case of re-inspection or when necessary and under the direction of the Governor of the State Bank;

t) Other entities assigned by the Governor of the State Bank.

2. Inspection and supervision of the branch of the State Bank shall be responsible for inspection in accordance with the law for the following banking inspected entities:

a) Agencies, organizations and individuals under the management of the State Bank branch;

b) Branches of foreign banks which are headquartered in provinces and cities where branches of the State Bank are located (hereinafter referred to as provinces and cities), except for statues prescribed at Point g, Clause 1 of this Article;

c) The attached units of the inspected entities are under the inspection responsibility of the Banking Inspection and Supervision Agency as prescribed in Clause 1 of this Article (except for subjects specified at Points p and q, Clause 1 of this Article) of the Inspection and Supervision of other branches of State Bank in which this subsidiaries are headquartered in the province and city;

d) People’s credit funds which are headquartered in the provinces or cities;

dd) Microfinance programs and projects in the province or city, except for subjects specified at Point 1, Clause 1 of this Article;

e) Representative offices of foreign credit institutions and other foreign organizations with banking activities based in the province or city;

g) Organizations with foreign exchange activities and gold business activities; non-banking intermediary service providers based in the province or city, except for subjects specified at Point q, Clause 1 of this Article;

h) Other agencies, organizations and individuals in the province or city are obliged to abide by law provisions in the domains under the State management scope of the State Bank;

i) Reporting subjects fall under the State management responsibility of the State Bank in their provinces and cities according to the provisions of law on the prevention of money laundering outside the subjects prescribed at Points b and c, d, dd, e, g, h This clause;

k) Other entities assigned by the Governor of the State Bank.

3. Inspection and supervision of the State Bank branch shall conduct inspections of inspected entities under the inspection responsibility of the State Bank’s inspection and supervision of other branches under the direction of the Governor of the State Bank.””.

• Secondly, amending and supplementing regulations on assignment of supervisory responsibilities to the supervised entities.

Specifically, Clause 2 Article 1 of Circular No. 08/2019/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 03/2015/TT-NHNN

…

2. Article 5 is amended and supplemented as follows:

“Article 5. Assignment of supervisory responsibilities to supervised entities

1. The Central Banking Inspection and Supervision Authority shall be responsible for supervising micro-security according to the provisions of law for the following supervised entities:

a) Commercial banks with 100% charter capital owned by the State;

b) Cooperative bank;

c) Joint venture bank;

d) Banks with 100% foreign capital;

dd) Branches of foreign banks as stipulated at Point g Clause 1 Article 4 of this Circular;

e) Joint stock commercial bank;

g) Non-bank credit institutions;

h) Microfinance institutions;

i) Other entities assigned by the Governor of the State Bank;

2. Inspection and supervision of the branch of the State Bank shall be responsible for supervising micro-security in accordance with the law for the following banking supervised entities:

a) Branches of foreign banks which are headquartered in provinces and cities, except for statues prescribed at Point dd, Clause 1 of this Article;

b) The attached units of the supervised entities are under the supervision responsibility of the Banking Inspection and Supervision Authorities as prescribed in Clause 1 of this of the Inspection and Supervision of other branches of State Bank in which this subsidiaries are headquartered in the province and city;

c) People’s credit funds which are headquartered in the provinces or cities;

d) Other entities assigned by the Governor of the State Bank.

3. The Central Banking Inspection and Supervision Authority shall perform macro safety supervising for the whole system of credit institutions and branches of foreign banks.

4. The Central Banking Inspection and Supervision Authority shall supervise according to the provisions of law for the following entities:

a) Policy bank;

b) Vietnam Asset Management Company;

c) Deposit Insurance of Vietnam;

d) Organizing of credit information activities;

dd) Subsidiaries of credit institutions stipulated in Points a, b, c, d, e, g of Clause 1 of this Article where this subsidiary is not a credit institution but under the inspection responsibility of the State Bank, except for entities under the inspection responsibility of the State Bank branch’s inspection and supervision;

e) Other entities assigned by the Governor of the State Bank.

5. Inspection and supervision of the branch of the State Bank shall supervise the following entities according to law provisions:

a) The attached units of the supervised entities fall under the supervisory responsibility of the Central Banking Inspection and Supervision Authority prescribed in Clause 4 of this Article, which have their head offices located in the provinces or cities.

b) Other entities assigned by the Governor of the State Bank.””.

• Thirdly, annulling the regulations on the relationship between the Banking Inspection and Supervision Department with the branch of State Bank in the locality stipulated in Article 12 of Circular No. 03/2015/TT-NHNN.

Specifically, Article 2 of Circular No. 08/2019/TT-NHNN stipulates: “Article 2. Annulling Article 12 of Circular No. 03/2015/TT-NHNN.”

1.2. Consolidated document No. 17/VBHN-NHNN in 2019 consolidated Circulars guidance for Decree 26/2014/ND-CP on organizational structure and operation of banking inspection and supervision authorities

• Name of legal document: Consolidated document No. 17/VBHN-NHNN in 2019 consolidated Circulars guidance for Decree 26/2014/ND-CP on organizational structure and operation of banking inspection and supervision authorities

• Consolidated date: 12/07/2019.

The content should be noted:

Consolidating the provisions stipulated at Circular No. 03/2015/TT-NHNN dated March 20, 2015 of the Governor of the State Bank of Vietnam guiding the implementation a number of articles of Decree No. 26/20143/ND-CP dated 07/04/2014 on organizational structure and operation of banking inspection and supervision authorities, effective from May 7, 2015, amended and supplemented by Circular No. 08/2019/TT-NHNN dated July 4, 2019 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 03/2015/TT-NHNN dated March 20, 2015 of the Governor of the State Bank of Vietnam guides the implementation of a number of articles of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities, effective from August 19, 2019.

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/07/2019

1.1. Circular No. 35/2018/TT-NHNN amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet

• Name of legal document: Circular No. 35/2018/TT-NHNN issued on 24/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet.

(amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet hereinafter referred to as the “Circular No. 35/2016/TT-NHNN”

Circular No. 35/2018/TT-NHNN issued on 24/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet hereinafter referred to as the “Circular No. 36/2018/TT-NHNN”).

• Effective date: 01/07/2019.

Some contents should be noted:

• Firstly, amending and supplementing regulations on Database management system.

Specifically, Clause 4 Article 1 of Circular No. 35/2018/TT-NHNN stipulates: “4. Clause 2 Article 6[1] (Circular No. 35/2016/TT-NHNN) is amended and supplemented as follows:

“2. The Internet Banking system must have a disaster backup database capable of replacing the main database and ensuring no loss of customers’ online transaction data.””.

• Secondly, amending and supplementing regulations on compulsory functions of the application.

Specifically, Clause 5 Article 1 of Circular No. 35/2018/TT-NHNN stipulates: “5. Points c and đ, Clause 6, Article 7[2] (Circular No. 35/2016/TT-NHNN) are amended and supplemented as follows:

“c) Session control: the system has a mechanism that shall automatically disconnect the session when the user does not manipulate for a period of time specified by the unit or applies other protection measures”;

“đ) For institutional customers, application software is designed to ensure the transaction execution includes at least two steps: creating, approving transactions and being executed by different people. In case the customer is an organization permitted by law to apply a simple accounting regime, the execution of the transaction is similar to that of individual customers”.”

1.2. Circular No. 48/2018/TT-NHNN on savings deposits

• Name of legal document: Circular No. 48/2018/TT-NHNN issued on 31/12/2018 by the State Bank of Viet Nam on savings deposits (hereinafter referred to as the “Circular No. 48/2018/TT-NHNN”)

• Effective date: 05/07/2019.

Some contents should be noted:

• Firstly, stipulating on savings deposit interest rate.

Specifically, Article 9 of Circular No. 48/2018/TT-NHNN stipulates: “Article 9. Interest rate

1. Each credit institution sets forth regulations on savings deposit interest rate in accordance with regulations of the State Bank of Vietnam on interest rates in every period.

2. Savings deposit interest calculation method shall be accordant with provisions of the State Bank of Vietnam.

3. Savings deposit interest payment method shall be made as agreed upon between the credit institution and the depositor.”

• Secondly, stipulating on procedures for making saving deposits at transaction offices of credit institutions.

Specifically, Article 12 of Circular No. 48/2018/TT-NHNN stipulates: “Article 12. Procedures for making saving deposits at transaction offices of credit institutions

1. A depositor must come to a transaction office of a credit institution in person and present his/her identify proof; in case of a joint savings deposit, all depositors must present their identify proof in person. If the savings deposit is going to made by the legal representative, such legal representative must present his/her representative status proof and identity proof and identity proof of depositor.

2. The depositor has to register his/her sample signature in a case where he/she wishes to change his/her old sample signature or he/she has not had such a sample signature registered at the credit institution. If the depositor is unable to write, read or see:  he/she will follow the guidelines of the credit institution.

3. The credit institution shall compare and update information of depositors as per the law on anti-money laundering.

4. The depositor will follow other procedures as guided by the credit institution.

5. Upon completion of procedures prescribed in Clauses 1, 2, 3 and 4 of this Article, the credit institution shall take the savings deposit and give the passbook to the depositor.

6. Adding credit to a savings account of an issued passbook:a) Adding credit in cash: The depositor shall comply with Clauses 1, 2, 3, and 4 of this Article and present the issued passbook.  The credit institution shall take the credit to the savings account, record the credit to the issued passbook and give the passbook to the depositor;b) Adding credit from a checking account of the depositor: the depositor will follow procedures as guided by the credit institution.”

• Thirdly, Circular No. 48/2018/TT-NHNN supersedes Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam on promulgation of Regulation on savings deposits, Decision No. 47/2006/QD-NHNN dated September 25, 2006 of the Governor of the State Bank of Vietnam on amendments to Regulation on savings deposits issued together with Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam.

Specifically, Clause 1 of Article 22 of Circular No. 48/2018/TT-NHNN stipulates: “Article 22. Implementation provision

1. This Circular comes into force as of July 5, 2019 and supersedes Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam on promulgation of Regulation on savings deposits, Decision No. 47/2006/QD-NHNN dated September 25, 2006 of the Governor of the State Bank of Vietnam on amendments to Regulation on savings deposits issued together with Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam.”

1.3. Circular No. 49/2018/TT-NHNN on term deposits

• Name of legal document: Circular No. 49/2018/TT-NHNN issued on 31/12/2018 by the State Bank of Viet Nam on term deposits (hereinafter referred to as the “Circular No. 49/2018/TT-NHNN”)

• Effective date: 05/07/2019.

Some contents should be noted:

• Firstly, stipulating principles of carrying out term deposit transactions.

Specifically, Article 5 of Circular No. 49/2018/TT-NHNN stipulates: “Article 5. Principles of carrying out term deposit transactions

1. A credit institution shall take term deposits in accordance with its scope of operation permitted by law and its establishment and operation licenses.

2. A customer may only make a term deposit and receive payment thereof via his/her checking account.

3. A customer shall, by himself/herself or through his/her legal representative, make a term deposit or receive payment thereof under guidance of the credit institution as per the law. If the customer is a person with limited legal capacity, legally incapacitated person as per the law or a person aged under 15 years, he/she shall make a term deposit or receive payment thereof via his/her legal representative; if the customer is a person with limited recognition and behavior control under law, he/she shall make a make a term deposit or receive payment thereof via his/her guardian (hereinafter referred to as legal representative).

4. Regarding a joint term deposit, the customers shall make deposit or receive payment thereof via their joint checking account. Residents and non-residents may not jointly make a joint term deposit. Organizations and individuals may not jointly make a joint term deposit in foreign currency.

5. The deposit term shall be determined according to the agreement made between the credit institution and the customer. With regard to a foreign organization or individual who is a non-resident, or a foreign individual who is a resident, the deposit term may not exceed the remaining validity period of their identity proof prescribed in Clause 4 and Clause 5 Article 4 hereof.

6. The currency used in payment of principal and interest of the term deposit is the currency that the customer previously used to make the deposit.”

• Secondly, amending certain articles of Circular No. 16/2014/TT-NHNN dated August 1, 2014 of the Governor of the State bank of Vietnam on guidelines for use of foreign currency and Vietnamese dong accounts of residents, non-residents held at authorized banks on (i) Using foreign currency account of residents as organizations; (ii) Using foreign currency account of non-residents as organizations; (iii) Using foreign currency account of residents as individuals; (iv) Using foreign currency account of non-residents as individuals.

Specifically, Clause 4 Article 17 of Circular No. 49/2018/TT-NHNN stipulates: “Article 17. Implementation provisions

…

4. This Circular amends certain articles of Circular No. 16/2014/TT-NHNN dated August 1, 2014 of the Governor of the State bank of Vietnam on guidelines for use of foreign currency and Vietnamese dong accounts of residents, non-residents held at authorized banks:

a) Add the third dash to Point d Clause 1 Article 3[3], the third dash to Point d Clause 1 Article [4]5 as follows:

“Foreign currency receipts from term deposit payout of principal and interest in foreign currency in accordance with regulations and laws on term deposits.”

[1] “Article 6. Database management system

…

2. The Internet Banking system must have backup database at the Disaster Recovery Center. The backup database must be updated within at least one hour compared to official database. The database shall be copied daily. Copies shall be managed and stored safely.”

[2] “Article 7. Internet Banking application

…

6. Compulsory functions of the application:

…

c) Have a mechanism to control transaction sessions and assess time of websites and applications. In a case where a user fails to manipulate within a certain time prescribed by the service provider but not exceeding five minutes, the system shall automatically disconnect the session or apply other protective measures;

…

đ) With regard to a client being an organization, the application is designed in a manner to ensure that the transaction will be conducted in two steps as follows: creating and approving transaction and conducted by at least two different persons.”

[3] “Article 3. Using foreign currency account of residents as organizations

The residents as organizations are entitled to use foreign currency accounts at the authorized banks for transactions of receipts and expenditures as follows:

1. Receipts:

…

d) Legal foreign currency revenues earned in the country, including:

– Receipts from the purchase of transferred foreign currency at the authorized credit institutions;

– Receipts of transferred foreign currency or remittance of foreign currency cash deposited into the account for cases entitled to receive foreign currency regulated by the State Bank of Vietnam on the use of foreign exchange in the territory of Vietnam.”

[4] “Article 5. Using foreign currency account of non-residents as organizations

The non-residents as organizations are entitled to use foreign currency accounts at the authorized banks to transact receipts and expenditures as follows:

1. Receipts:

…

d) Receipts of foreign currency from legal sources in the country, including:

– Receipts from the purchase of wired foreign currency at the authorized credit institutions;

– Receipts of wired foreign currency or remittance of foreign currency cash to the account for cases entitled to earn foreign currency regulated by the State Bank of Vietnam on the use of foreign exchange in the territory of Vietnam.”

1. LEGAL DOCUMENTS ISSUED IN 05/2019

Decree No. 43/2019/ND-CP amending and supplementing a number of articles of the Decree No. 26/2014/ND-CP issued on April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

• Name of legal document: Decree No. 43/2019/ND-CP issued on 17/05/2019 by the Government amending and supplementing a number of articles of the Decree No. 26/2014/ND-CP issued on April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

• Effective date: 17/05/2019.

Some contents should be noted:

• Firstly, amending the regulation on the power to issue inspection decision and re-inspection decisions.

Specifically, Clause 6 Article 1 of Decree No. 43/2019/TT-NHNN stipulates as follows: “Article 1. Amending and supplementing a number of articles of Decree No. 26/2014/ND-CP dated April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

6. Amending Article 18 (Decree No. 26/2014/ND-CP)

“1. The Chief Inspector, the Director General of the Department of Banking Inspection and Supervision and the Chief Inspector of provincial banking inspection and supervision authority shall issue the inspection and decision on inspection and establishment of the inspectorate. When necessary, the Governor of the State Bank or the Director of the branch of the State Bank shall issue the decision on inspection and establishment of the inspectorate.

2. The Chief Inspector shall decide to re-inspect the case that has been concluded by the Chief Inspector of the provincial banking inspection and supervision authority, but violations of law are suspected; the case that has been concluded by the President of the People’s Committee of province, but violations of law are suspected as assigned by the Governor of the State Bank.””

• Secondly, amending and supplementing the regulation on contents of banking supervision.

Specifically, Clause 7 Article 1 of Decree No. 43/2019/TT-NHNN stipulates as follows: “Article 1. Amending and supplementing a number of articles of Decree No. 26/2014/ND-CP dated April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

7. Amending and supplementing Point b, Point c Clause 1 Article 23 (Decree No. 26/2014/ND-CP) as follows:

“b) Consider and monitor the compliance with regulations on banking safety and other relevant laws; the implementation of conclusions, proposals and decisions on handling of inspections; the implementation of proposals and warnings on banking supervision and remedial measures when being subject to early intervention in accordance with Clause 25, Article 1 of the Law amending and supplementing a number of articles of the Law on Credit Institutions[1];

1. c) Regularly analyzing and assessing the financial, operational, management, operating and risk situation of credit institutions, foreign bank branches, systemic risks; ranking credit institutions, foreign bank branches annually according to the safety level;””

• Thirdly, amending and supplementing the regulation on licensing activities in banking inspection and supervision.

Specifically, Clause 9 Article 1 of Decree No. 43/2019/TT-NHNN stipulates as follows: “Article 1. Amending and supplementing a number of articles of Decree No. 26/2014/ND-CP dated April 7th, 2014 of the Government on organizational structure and operation of banking inspection and supervision authorities

9. Amending and supplementing Clause 1 Article 30 (Decree No. 26/2014/ND-CP) as follows:

“1. The Central Banking Inspection and Supervision Authority shall consult with or assist the Governor of the State Bank; provincial banking inspection and supervision authority shall consult with or assist the Director of the branch of the State Bank (in case the Director of the branch of the State Bank is authorized by the Governor of the State Bank) in:

a) issuing, adjusting, adding, revoking the license for establishment and operation of credit institutions, license for establishment of foreign banks’ branches, license for establishment of representative offices of foreign credit institutions or other foreign organizations involved in banking activities and other licenses for operation of banks;

b) issuing and revoking the license for provision of credit information services by institutions;

c) issuing and revoking registration certificates for microfinance projects and programs;

d) approving the trading, full division, partial division, consolidation, acquisition, conversion of legal forms, or dissolution of a credit institution or foreign bank’s branch; approving provisional lists of elected or appointed members of the Board of Members, Board of Directors, Board of Controllers and Director General (Director) of credit institutions, except for the personnel of commercial banks 100% of charter capital of which is held by the State, personnel that is appointed or introduced by the owner of state capital at Joint Stock Commercial Bank over 50% of charter capital of which is held by the State; approving the person expected to be appointed to the Director General (Director) of the foreign bank’s branch; approving the establishment, termination and dissolution of domestic branch, representative office, service provider, foreign branch, representative office and other forms of foreign commercial presence of a credit institution; approving the establishment, acquisition of subsidiary or associate company of a credit institution; approving the capital contribution or purchase of shares by a credit institution; approving other issues concerning management, organizational structure, finance and operations in accordance with law that must be granted approval or permission by the State;

dd) resolving issues concerning organizational structure and management of credit institutions and foreign banks’ branches to ensure credit institutions and foreign banks’ branches operate in a safe and sound manner and in accordance with regulations of law;

e) Implementing some contents on rights and responsibilities of the representative office of the owner of State capital in credit institutions, financial institutions and enterprises managed by the State Bank in accordance with the provisions of laws and assignments of the Governor of the State Bank;

g) formulating, organizing and monitoring the implementation of the scheme or policy for reorganizing, reinforcing, restructuring and special controlling credit institutions and foreign banks’ branches.””

[1] “Article 1. Amendments to some Articles of the Law on credit institutions

…

25. Clause 130a below is added after Article 130:

 “Article 130a. Early intervention in credit institutions and branches of foreign banks

1. In any of the following cases, the State bank will consider making early intervention in a credit institution that has not been placed under special control according to Article 145 of this Law:

a) The credit institution fails to maintain the solvency ratio specified in Point a Clause 1 Article 130 of this Law for 03 consecutive months;

b) The credit institution fails to maintain the capital adequacy ratio specified in Point b Clause 1 Article 130 of this Law for 06 consecutive months;

c) The credit institution is ranked below average according to the State bank.

2. The State bank will consider making early intervention in a foreign bank’s branch in any of the cases specified in Point a, b, c Clause 1 of this Article.

3. Within 30 days from the day on which the written decision on early intervention is received from the State bank, the credit institution or foreign bank’s branch shall submit a report to the State bank on the situation specified in Clause 1 of this Article and a remedial plan, and implement it. The State bank will request the credit institution or foreign bank’s branch to revise the remedial plan where necessary.

The time limit for implementing the remedial plan is 01 year from the issuance date of the decision on early intervention.

4. The remedial plan shall contain one or some of the following measures:

a) Reduction of operating scope, avoid high-value transactions;

b) Increase in charter capital or provided capital; increase assets with high liquidity; sale or transfer of assets and other measures for assurance of banking safety;

c) Reduce dividends and distribution of profit;

d) Cut operating costs, administrative costs; reduce payment of salaries and bonuses to managers and executives;

dd) Intensify risk management; reorganize the management, make redundancies;

e) Other measures prescribed by law.

5. If the credit institution or foreign bank’s branch fails to prepare a remedial plan in accordance with Clause 3 of this Article or fails to remedy the situation within the time limit specified in Clause 1 of this Article, the State bank, depending on the risk level, will request the credit institution or foreign bank’s branch to take one or some of the measures specified in Clause 4 of this Article.

6. The State bank shall issue a decision to stop the early intervention after the credit institution or foreign bank’s branch successfully remedies the situation mentioned in Clause 1 of this Article or when the credit institution is placed under special control.

7. The State bank shall elaborate this Article.””

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/05/2019

Circular No. 03/2019/TT-NHNN amending and supplementing a number of articles of the Circular No. 32/2013/TT-NHNN dated 26 December 2013 of the Governor of the State bank of Vietnam guiding the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam

• Name of legal document: Circular No. 03/2019/TT-NHNN issued on 29/03/2019 by the State Bank of Viet Namamending and supplementing a number of articles of the Circular No. 32/2013/TT-NHNN dated 26 December 2013 of the Governor of the State bank of Vietnam guiding the implementation of regulations on restricting the use of foreign exchange in the territory of Vietnam (hereinafter referred to as the “Circular No. 03/2019/TT-NHNN”).
• Effective date: 13/05/2019.

The content should be noted: Adding provisions on cases allowed to use foreign exchange in the territory of Vietnam.

Specifically, Article 1 of Circular No. 03/2019/TT-NHNN stipulates: “”Article 1. Amending and supplementing a number of articles of Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations restricting the use of foreign exchange in Vietnamese territory

Adding point c to Clause 16 of Article 4[1] as follows:

“C) Foreign investors are entitled to deposit, escrow deposit in transferred foreign currency when participating in an auction in the following cases:

(i) Purchasing shares in equitized state enterprises shares approved by the Prime Minister;

(ii) Purchasing of shares, capital contribution of the state in state-owned enterprises, state-invested enterprises undergoing divestment approved by the prime minister;

(iii) Purchasing of shares, contributed capital of state-owned enterprises investing in other state-invested enterprises undergoing divestment approved by the prime minister.

In case of winning an auction, foreign investors shall transfer investment capital according to the provisions of law on foreign exchange management in order to pay the value of the purchase of shares or contributed capital. In case of unsuccessful auctions, foreign investors may remit abroad the amount of deposits or escrowing deposits in foreign currency after subtracting the related expenses (if any).”.”

2. LEGAL DOCUMENTS ISSUED IN 04/2019

Consolidated document No. 14/VBHN-NHNN guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam

• Name of legal document: Consolidated document No. 14/VBHN-NHNN issued on 04/04/2019 by the State Bank of Viet Nam guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam.
• Consolidated date: 04/04/2019.

The content should be noted: Consolidating the provisions stipulated at Circular No. 32/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding the implementation of regulations restricting the use of foreign exchange in the territory of Vietnam, effective from 10 February 2014, amended and supplemented by Circular No. 16/2015/TT-NHNN dated October 19, 2015 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 32/2013 / TT-NHNN dated 26/12/2013 of the Governor of the State Bank of Vietnam guiding the implementation of the regulations on restricting the use of foreign exchange in the territory of Vietnam, effective from December 3, 2015 and Circular No. 03/2019/TT-NHNN dated March 29, 2019 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 32/2013/TT-NHNN dated December 26, 2013 2013 by The governor of the State Bank of Vietnam guiding the implementation of the regulations on restricting the use of foreign exchange in the Vietnamese territory, effective from May 13, 2019.

[1] “Article 4. Cases allowed to use foreign exchange in the territory of Vietnam

…

16. Non-residents shall comply with the following provision:

a) They are allowed to transfer in foreign currency for other non-residents;

b) They are allowed for prices in contracts in foreign currency and payment of export goods and services in foreign currency by transfer for residents. Residents are allowed to make quotations, fix prices in foreign currency or receive payments in foreign currency by transfer when they supply goods and services for non-residents.

…”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/04/2019

Circular No. 52/2018/TT-NHNN providing on rating credit institutions and branches of foreign banks

• Name of legal document: Circular No. 52/2018/TT-NHNN issued on 31/12/2018 by the State Bank of Viet Nam providing on rating credit institutions and branches of foreign banks (hereinafter referred to as the “Circular No. 52/2018/TT-NHNN”)

• Effective date: 01/04/2019.

Some contents should be noted:

• Firstly, stipulating on principles and methods of ranking foreign credit institutions and branches of foreign banks.

Specifically, Article 4 of Circular No. 50/2018/TT-NHNN stipulates: “Article 4. Principles and methods of ranking foreign credit institutions and branches of foreign banks

1. The rating should ensure full reflection of the operational status and risks of credit institutions and branches of foreign banks and comply with the provisions of law.

2. Credit institutions and foreign bank branches are divided into peer groups, specifically as follows:

a) Group 1: Commercial banks have a large scale (the total average asset value in a quarter is ranked over 100,000 billion dong);

b) Group 2: Commercial banks are small in scale (the total average asset value in a quarter is equal to or lower than VND 100,000 billion);

c) Group 3: Branches of foreign banks;

d) Group 4: Financial companies;

e) Group 5: Financial leasing companies;

e) Group 6: Cooperative banks.

3. Credit institutions and branches of foreign banks are ranked according to the criteria system. Each ranking criterion includes quantitative indicators and qualitative groups. Group of quantitative indicators measures the level of banking operations on the basis of operating data of foreign credit institutions and branches of foreign banks. Qualitative indicators group to measure the compliance with legal regulations of credit institutions and branches of foreign banks.

4. Weight of the target group, the weight of each indicator in each peer group is determined on the basis of the importance of each group of criteria, each indicator for the level of banking activity and love demand of inspection and supervision.

5. Based on the rating score achieved, credit institutions, foreign bank branches are classified into one of the following categories: Good (A), Fair (B), Medium (C), Weak ( D) or Extremely Weak (E).”

• Secondly, stipulating on frequency, time for implementation and approval of ratings.

Specifically, Article 21 of Circular No. 52/2018/TT-NHNN stipulates: “Article 21. Frequency, time for implementation and approval of ratings

1. Before June 10 every year, the Banking Inspection and Supervision Agency shall submit to the State Bank Governor for approval the ranking results of the preceding year for credit institutions and branches of foreign banks.

2. Before June 30 every year, the Governor of the State Bank shall approve the ranking results of the preceding year for foreign credit institutions and branches of foreign banks.

3. In case of serving unexpected state management requirements, the State Bank Governor shall decide the time for ranking and approving other ranking results prescribed in Clauses 1 and 2 of this Article.”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/03/2019

1.1. Circular No. 30/2018/TT-NHNN guidance for determination of state capital of equitized enterprises being credit organization

• Name of legal document: Circular No. 30/2018/TT-NHNN issued on 12/12/2018 by the State Bank of Viet Nam guidance for determination of state capital of equitized enterprises being credit organization (hereinafter referred to as the “Circular No. 30/2018/TT-NHNN”).
• Effective date: 01/03/2019.

The contents should be noted: Clause 2 Article 2 of Circular No. 30/2018/TT-NHNN stipulates on regulated entities of the Circular as follows: “2. Regulated entities:

a) Equitized enterprises are credit institutions, including:

(i) State-owned one-member limited liability companies with 100% of the charter capital prescribed in Clause 2, Article 2[1] of Decree No. 126/2017/ND-CP are credit institutions;

(ii) One-member limited liability companies invested by state enterprises with 100% charter capital prescribed in Clause 3[2], Article 2 of Decree No. 126/2017/ND-CP are credit institutions;

b) The agency representing the owner and agencies, organizations and individuals involved in the determination of the state capital of equitized enterprises is the credit institution specified at Point a of this Clause.”

1.2. Circular No. 51/2018/TT-NHNN regulating conditions, records, order and procedures for approving the capital contribution, share purchase of credit institutions

• Name of legal document: Circular No. 51/2018/TT-NHNN issued on 31/12/2018 by the State Bank of Viet Nam regulating conditions, records, order and procedures for approving the capital contribution, share purchase of credit institutions (hereinafter referred to as the “Circular No. 51/2018/TT-NHNN”).
• Effective date: 01/03/2019.

Some contents should be noted:

• Firstly, regulating conditions of capital contribution, purchase of shares of credit institutions.

Specifically, Article 4 of Circular No. 51/2018/TT-NHNN stipulates as follows: “Article 4. Conditions of capital contribution, purchase of shares of credit institutions

1. Conditions for making capital contribution and share purchase to establish and buy subsidiary companies specified at Points a and c, Clause 1, Article 1 of this Circular (except for subsidiary companies operating in the field of management debt and asset exploitation):

a) License for establishment and operation of credit institutions with contents of capital contribution and share purchase;

b) Ensuring the minimum capital adequacy ratio as prescribed in Point b, Clause 1, Article 130 of the Law on Credit Institutions in the 24 months preceding the proposed month and at the time of completing the capital contribution and buying shares according to approval of the State Bank;

c) Ensuring the ratio of capital contribution and share purchase in accordance with Article 129 of the Law on Credit Institutions in the 24 months preceding the proposed month and at the time of completion of capital contribution and share purchase as approved by the State Bank;

d) The real value of charter capital at the time of completion of capital contribution or share purchase is not lower than the legal capital;

dd) The results of profitable business activities according to the financial statements of the year preceding the year of request for audit have been audited by an independent auditing organization;

e) Not be sanctioned for administrative violations in debt classification, appropriation and use of reserves to handle risks, contribute capital, buy shares in 12 consecutive months preceding the proposed month;

g) Having a bad debt ratio compared to the total outstanding debt of less than 3% in the 12 months preceding the proposed month;

h) There is an organizational structure, the Board of Directors, the Members’ Council, the Control Board, the General Director (Director) in accordance with the Law on Credit Institutions and the regulations of the State Bank.

2. Conditions for making capital contribution and share purchase for establishment and acquisition of associated companies specified at Points a and c, Clause 1, Article 1 of this Circular (except for affiliate companies operating in the field of debt management and asset exploitation):

a) Conditions specified at Points a, d, dd, e, g and h, Clause 1 of this Article;

b) Ensuring the minimum capital adequacy ratio as prescribed in Point b, Clause 1, Article 130 of the Law on Credit Institutions in the 12 months preceding the proposed month and at the time of completing the capital contribution and buying shares according to approval of the State Bank;

c) Ensuring the ratio of capital contribution and share purchase in accordance with Article 129 of the Law on Credit Institutions in the 12 months preceding the proposed month and at the time of completion of capital contribution and share purchase as approved by the State Bank.

3. Conditions for capital contribution and share purchase to establish and acquire subsidiaries and associated companies operating in the field of debt management and asset exploitation:

a) Conditions specified at Point a, Clause 1 of this Article;

b) Ensuring the ratio of capital contribution and share purchase in accordance with Article 129 of the Law on Credit Institutions at the time of completion of capital contribution and share purchase as approved by the State Bank;

c) Having a bad debt ratio compared to the total outstanding debt of over 3% in the 12 months preceding the proposed month.

4. Conditions for making capital contribution or share purchase for other enterprises operating in the fields specified at Point b, Clause 1, Article 1 of this Circular:

a) The conditions specified in Clause 1 of this Article;

b) Ensuring the maximum ratio of short-term capital sources used for medium- and long-term loans under the provisions of Point c, Clause 1, Article 130 of the Law on Credit Institutions and the regulations of the State Bank in 24 Next month before the proposed month.

5. Conditions for converting debts into contributed capital specified at Point d, Clause 1, Article 1 of this Circular:

a) Conditions specified at Points a, b, c, d, dd, e and h, Clause 1 of this Article;

b) Debts converted into contributed capital must be bad debts and the transfer of debts into contributed capital is to handle bad debts. Bad debts are debts determined by the State Bank’s regulations on classification of assets, deduction levels, methods of setting up risk provisions and the use of risk provisions in the operation of credit institutions, branches of foreign bank.”

• Secondly, prescribing the order and procedures for approving capital contribution and purchase of shares of credit institutions.

Specifically, Article 6 Circular No. 51/2018/TT-NHNN stipulates: “Article 6. Order and procedures for approving capital contribution and purchase of shares of credit institutions

1. Credit institutions shall make 02 sets of dossiers as prescribed in Article 5 of this Circular and send them to the State Bank (via the Banking Inspection and Supervision Agency). In case the dossier is incomplete or invalid, within 7 days after receiving the dossier, the Banking Inspection and Supervision Agency shall send a written request to the credit institution to supplement the dossier.

2. Within 07 days from the date of receipt of a complete and valid dossier, the Banking Inspection and Supervision Agency shall send a written document enclosed with the dossier for sending comments:

a) State Bank branches in provinces, cities where the credit institutions are headquartered on meeting the conditions prescribed in this Circular;

b) Units of the State Bank on capital contribution, share purchase, debt transfer into contributed capital of credit institutions (if necessary).

3. Within 10 days from the date of receiving the written opinions of the Banking Inspection and Supervision Agency, the consulted units specified in Clause 2 of this Article shall have their written opinions sent to Banking Inspection and Supervision on the contents to be consulted.

4. Within 14 days from the date of receiving the comments of the relevant units, the Banking Inspection and Supervision Agency shall appraise the dossier and submit it to the State Bank Governor for consideration, approval or disapproval of the capital contribution, share purchase, debt transfer into contributed capital at the request of the credit institution.

5. Within 45 days from the date of receipt of a complete and valid dossier, the State Bank shall issue a written approval or disapproval of the capital contribution, share purchase and debt transformation into contributed capital of a credit institution; In case of disapproval, the State Bank shall issue a document clearly stating the reason.

6. Within 12 months after the State Bank issues a written approval, the credit institution must complete the capital contribution, share purchase, and debt transfer into contributed capital. Beyond this time limit, the State Bank’s written approval shall automatically expire.”

7. Quarterly (by the 03rd of the first month of the reporting quarter), the converting bank must submit reports to the SBV (the Foreign Exchange Management Department, the Financial Policy Department and the Operations Center) on the estimated amounts of foreign currency to be converted by project enterprises/ investors in the next quarter and the foreign currency balancing plan to meet such amounts.”

1.3. Circular No. 53/2018/TT-NHNN regulations on the network of non-bank credit institutions

• Name of legal document: Circular No. 53/2018/TT-NHNN issued on 31/12/2018 by the State Bank of Viet Nam regulations on the network of non-bank credit institutions (hereinafter referred to as the “Circular No. 53/2018/TT-NHNN”).
• Effective date: 01/03/2019.

Some contents should be noted:

• Firstly, regulations on conditions for establishing branches of non-bank credit institutions

Specifically, Article 7 of Circular No. 53/2018/TT-NHNN stipulates: “Article 7. Conditions for establishing branches

1. A non-bank credit institution with a period of operation of 12 months or more (calculated from the date of opening operation to the time of request) is allowed to establish no more than 3 branches in a fiscal year when meeting the following conditions:

a) The actual value of charter capital as at December 31 of the preceding year is not lower than the legal capital level;

b) Interest-bearing business activities according to the consolidated financial statements and audited separate financial statements of the preceding year preceding the year of proposal. This condition does not apply to non-bank credit institutions submitting their application for the second year from the date of opening;

c) At the time of the proposal, the competent agency does not apply measures not to expand the area of operation;

d) At the time of the proposal, it does not violate the regulations on safety ratio in the operation of non-bank credit institutions;

dd) The ratio of bad debt to total outstanding debt as of December 31 of the preceding year preceding the year of proposal and at the time of the proposal does not exceed 4% or another rate decided by the Governor fin each period;

e) At the time of proposal the Board of Directors, the Members’ Council, and the Control Board to have the quantity and structure strictly according to the provisions of law, no vacancies to the General Director (Director) title;

g) At the time of the proposal does not violate the regulations on internal control system and internal audit; asset classification and risk provisioning;

h) There is a Regulation on network management in accordance with Article 6 of this Circular;

i) Has a scheme to establish a network unit.

2. Non-bank credit institutions with operating duration of less than 12 months (from the date of opening operation to the time of proposal) are allowed to establish no more than 2 branches when meeting the following conditions:

a) The real value of charter capital at the time of proposal is not lower than the legal capital;

b) The ratio of bad debt to the total outstanding debt at the latest time of the proposal does not exceed 4% or another rate as decided by the Governor in each period;

c) The provisions at Points c, d, e, g, h and i, Clause 1 of this Article.”

• Secondly, annulling Decision No. 01/2008/QD-NHNN dated January 9, 2008 of the Governor of the State Bank of Vietnam promulgating regulations on opening and terminating operations of branches and representative offices of groups non-bank credit institutions.

Specifically, Clause 2 Article 25 of Circular No. 53/2018/TT-NHNN stipulates: “Article 25. Implementation effect

…

2. To annul Decision No. 01/2008 / QD-NHNN dated January 9, 2008 of the Governor of the State Bank of Vietnam promulgating regulations on opening and terminating operations of branches and representative offices of groups non-bank credit institutions.”

1.4. Circular No. 01/2019/TT-NHNN on amendments to the Circular No. 30/2015/TT-NHNN dated December 25, 2015 by the Governor of the State Bank of Viet Nam on licensing, organization and operation of non-bank credit institutions

• Name of legal document: Circular No. 01/2019/TT-NHNN issued on 01/02/2019 by the State Bank of Viet Nam on amendments to the Circular No. 30/2015/TT-NHNN dated December 25, 2015 by the Governor of the State bank of Vietnam on licensing, organization and operation of non-bank credit institutions (hereinafter referred to as the “Circular No. 01/2019/TT-NHNN”).
• Effective date: 20/03/2019.

Some contents should be noted:

• Firstly, modify, supplement the explanation of the phrase “Lessee”.

Specifically, Clause 1 Article 1 of Circular No. 01/2019/TT-NHNN stipulates: Article 1. Amendments to the Circular No. 30/2015/TT-NHNN dated December 25, 2015 by the Governor of the State Bank of Vietnam (“SBV”)

1. Clause 14 Article 3[3] is amended as follows:

“14. Lessee (including the seller of an asset that then leases that asset under a finance lease contract) refers to a legal entity or individual that operates in Vietnam and directly uses the leased asset to serve their operations.

When a household, artel or organization without a legal status wishes to enter into a finance lease contract, such finance lease contract must be concluded by its member or authorized representative.”.”

• Secondly, the phrase “Cục Thanh tra, giám sát ngân hàng” (“Bank Supervision and Inspection Office”) is changed into “Cơ quan Thanh tra, giám sát ngân hàng (đối với địa bàn có Cục Thanh tra, giám sát ngân hàng)” (“Bank Supervision and Inspection Authority (for province where the Bank Supervision and Inspection Office is established)”)

Specifically, Clause 3 Article 2 of Circular No. 01/2019/TT-NHNN stipulates: “Artilce 2.

…

3. The phrase “Cục Thanh tra, giám sát ngân hàng” (“Bank Supervision and Inspection Office”) is changed into “Cơ quan Thanh tra, giám sát ngân hàng (đối với địa bàn có Cục Thanh tra, giám sát ngân hàng)” (“Bank Supervision and Inspection Authority (for province where the Bank Supervision and Inspection Office is established)”) at Point a Clause 3 Article 10, Point d Clause 1 Article 41, Article 7 Appendix No. 09A, Article 7 Appendix No. 09B, Article 7 Appendix No. 09C, Article 7 Appendix No. 09D of the Circular No. 30/2015/TT-NHNN.”

1.5. Decree No. 16/2019/ND-CP amending and supplementing decrees on business conditions under the state management of the State Bank of Viet Nam

• Name of legal document: Decree No. 16/2019/ND-CP issued on 01/02/2019 by the Government of Viet Nam amending and supplementing decrees on business conditions under the state management of the State Bank of Viet Nam (hereinafter referred to as the “Decree No. 16/2019/TT-NHNN”).
• Effective date: 20/03/2019.

The content should be noted: amending and supplementing conditions for a credit information company to obtain a certificate of eligibility for credit information-related activities.

Specifically, Article 4 of Decree No. 16/2019/ND-CP stipulates: “Article 4. Amending and supplementing certain articles of the Government’s Decree No. 10/2010/ND-CP dated February 12, 2010 on credit information-related activities

Clause 5 Article 7[4] (as amended and supplemented in Article 1 of the Government’s Decree No. 57/2016/ND-CP dated July 01, 2016 providing amendments to Article 7 of the Government’s Decree No. 10/2010/ND-CP dated February 12, 2010) is amended and supplemented as follows:

“5. There are at least 15 credit institutions, branches of foreign banks (except banks for social policies, cooperative banks, people’s credit funds and microfinance institutions) that commit to provide credit information; these credit institutions and branches of foreign banks do not give similar commitments to any other credit information provider.””

1.6. Circular No. 02/2019/TT-NHNN amending and supplementing a number of articles of the circular no. 23/2014/TT-NHNN dated august 19, 2014 of the State Bank of Vietnam guiding the opening and use of payment accounts at payment service suppliers

• Name of legal document: Circular No. 02/2019/TT-NHNN issued on 28/02/2019 by the State Bank of Viet Nam amending and supplementing a number of articles of the circular no. 23/2014/TT-NHNN dated august 19, 2014 of the State Bank of Vietnam guiding the opening and use of payment accounts at payment service suppliers (hereinafter referred to as the “Circular No. 02/2019/TT-NHNN”).
• Effective date: 01/03/2019.

Some contents should be noted:

• Firstly, amending and supplementing regulations on authorization in using payment accounts.

Specifically, Clause 2, Article 1 of Circular No. 02/2019/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 23/2014/TT-NHNN of August 19, 2014 of The State Bank of Vietnam guides the opening and use of payment accounts at payment service suppliers

…

2. Clause 1 and Clause 2 of Article 4[5] are amended and supplemented as follows:

“1. The account holder has the right to authorize another person to use his or her payment account.

2. The authorization in the use of payment accounts must be in writing and comply with the law on authorization.””

• Secondly, supplementing regulations on handling checks and complaints in using payment accounts.

Specifically, Clause 11 Article 1 of Circular No. 02/2018/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 23/2014/TT-NHNN of August 19, 2014 of The State Bank of Vietnam guides the opening and use of payment accounts at payment service suppliers

…

11. “Article 15a. Handling checks and complaints in using payment accounts

1. Banks and branches of foreign banks are responsible for receiving customers’ inquiries and complaints during the process of using payment accounts to ensure compliance with the following principles:

a) Applying at least two forms of receiving information of inspection and complaint including via telephone switchboards (with sound recording) and through transaction points of banks and branches of foreign banks; ensure the verification of basic information that customers have provided to banks and foreign bank branches;

b) Developing a form of request for investigation and complaint for customers to use when requesting investigation and complaint. In case of receiving information via telephone switchboards, banks and branches of foreign banks require customers to supplement inspection requests and complaints according to forms within the prescribed time of banks and branches of foreign banks to act as the official basis for handling investigation and complaints. In case of authorizing other people to request examination, complaint, customers shall comply with the provisions of law on authorization;

c) Banks and branches of foreign banks are allowed to agree on and specify the time limit for customers to be entitled to request for investigation and complaint but not less than 60 days from the date of the transaction for requesting investigation, complaint.

2. Time limit for handling investigation and complaints:

a) Within 30 working days after receiving customers’ requests for first-time inspection and complaint according to one of the receiving forms prescribed at Point a, Clause 1 of this Article, the banks or branches of foreign banks shall be responsible for handling customers’ requests for investigation and complaints;

b) Within 5 working days from the date of notification of inspection results, complaints to customers, banks and branches of foreign banks shall be refunded to customers according to the agreement and current law for losses arising out of the customer’s fault and/or not subject to force majeure circumstances as agreed upon terms and conditions for opening and using payment accounts;

c) In case of expiry of the time limit for handling the control and complaint specified at Point a of this Clause, but the cause or error of any party has not been determined yet, within the next 15 working days, the bank or branches of foreign banks shall agree with customers on the plan of handling investigation and complaints.

3. If the case shows signs of a crime, the bank or branches of foreign banks shall notify the competent state agency in accordance with the law on criminal procedures and report to the State Bank (Payment Department, Banking Inspection and Supervision Agency, State Bank of provinces and cities in the area); at the same time, notify customers in writing about the status of handling requests for investigation and complaints. The handling of results of inspection and complaints falls under the handling responsibility of competent state agencies. In cases where competent state agencies announce the settlement results without criminal elements, within 15 working days from the date of conclusion of competent state agencies, banks or branches of foreign banks agreed with customers on the plan of handling results of investigation and complaint.

4. In case the banks, branches of foreign banks, customers and related parties cannot reach an agreement and/or disagree with the process of requesting a investigation or complaint, the dispute resolution shall be made according to regulations of laws.””

[1] “Article 2. Regulated entities

…

2. State-owned enterprises including:

a) Wholly state-owned single-member limited liability companies (LLCs) that are parent companies of state-owned economic groups, parent companies of state corporations (including state-owned commercial banks) or parent companies in groups of parent companies and subsidiaries (hereinafter referred to as “parent companies”).

b) Wholly state-owned single-member LLCs.

c) Wholly state-owned enterprises that have not been converted into single-member LLCs.”

[2] “Article 2. Regulated entities

…

3. Single-member LLCs with 100% of charter capital invested by state-owned enterprises (hereinafter referred to as “level II enterprises”).”

[3] “Article 3. Interpretation of terms

In this Circular, some terms are construed as follows:

…

14. The lessee (including sub-lessee) includes organizations and individuals operating in Vietnam including legal and natural persons and other civil subjects according to civil laws who have the use of the leased assets for their own purposes.”

[4] “Article 7. Conditions for a credit information company to obtain a certificate of eligibility for credit information-related activities

…

5. Having at least 20 commercial banks that commit to provide credit information exclusively to the company”

[5] “Article 4. Authorization in using payment account1. In the process of using the payment account, the account holder, the chief accountant or the person in charge of accounting (if any) may authorize another person.”

This amount is amended by Clause 2 Article 1 of Circular 32/2016/TT-NHNN

“Article 1. Amending and supplementing a number of articles and appendices of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of payment accounts at payment service suppliers”

…

2. Clause 1… Article 4 is amended and supplemented as follows:

“1. The account holder has the right to authorize another person to use his or her payment account.”

“2. Authorization in the use of payment accounts must be in writing and comply with the law on authorization. Authorization in using the organization’s payment account must be approved in writing by the account opening organization.”

This clause is amended by Clause 2 Article 1 of Circular 32/2016/ TT-NHNNĐ

“Article 1. Amending and supplementing a number of articles and appendices of Circular No. 23/2014/TT-NHNN of August 19, 2014 of The State Bank of Vietnam guides the opening and use of payment accounts at payment service suppliers

…

2. … Clause 2 of Article 4 is amended and supplemented as follows:

… 2. Authorization in the use of payment accounts must be in writing and comply with the law on authorization. “”