1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/10/2018

Decree No. 116/2018/NĐ-CP amending and supplementing a number of articles of the government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development

• Name of legal document: Decree No. 116/2018/NĐ-CP issued on 07/9/2018 by Government amending and supplementing a number of articles of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development (hereinafter referred to as the “Decree No. 116/2018/NĐ-CP”).

• Effective date: 01/11/2018.

The content should be noted: Amending and supplementing the regulation on scope of application of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development.

Specifically, Clause 1 Article 1 of Decree No. 116/2018/NĐ-CP stipulates: “Article 1. amending and supplementing a number of articles of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development, including:

1. Amending Clause 2 of Article 2 and to add Clause 3 to Article 2 as follows:

“2. Customers borrowing capital at credit institutions are individuals and juridical persons, including:

a) Individuals which reside within rural localities, or are carrying out agricultural production or business operations, farm owners;

b) Juridical persons include:

(i) Co-operatives, unions of cooperatives which are in rural areas or engage in production and business activities in agriculture;

(ii) Enterprises engaging in production and business activities in rural areas, except: real estate business enterprises, mining enterprises, electricity production units and enterprises not defined in Point b (ii), Clause 2 of this Article located in industrial parks and export processing zones;

(iii) Enterprises providing agricultural inputs for agricultural production and enterprises producing, purchasing, processing and marketing agricultural products and by-products.

3. Family households, artels and other non-juridical persons organizations, when participating in the loan relations, members of other family households, cooperative groups or non-juridical persons organizations are subjects of participating in establishing, executing loan transactions or authorize the representatives to participate in the establishment and implementation of loan transactions. Authorization must be made in writing, unless otherwise agreed. when there is a change of representative, it must inform the party participating in the loan relationship. In case a member of a household, a cooperative group or other non-juridical persons organizations participate in the loan relationship is not authorized by another member to act as a representative, the member is the subject of the loan relationship he/she has established and implemented.

Family households, cooperative groups and other non-juridical persons organizations specified in this Clause include:

a) Family households which reside within rural localities, or are carrying out agricultural production or business operations;

b) Family households operating within rural localities;

c) Artels which are located within rural localities, or carrying out agricultural production or business operations;

d) Enterprises carrying out their business operations in rural localities, except for the following entities: real estate enterprises, mining enterprises, hydropower and thermopower generation facilities, and enterprises that are not governed by Point d Clause 3 of this Article and are located at industrial parks or processing and exporting zones;

e) Enterprises supplying agricultural raw materials and inputs to the agricultural production and those manufacturing, purchasing, processing and consuming agricultural produce and byproducts.””

2. LEGAL DOCUMENTS ISSUED IN 08/2018 AND 09/2018

2.1.  Circular No. 18/2018/TT-NHNN on information system security in banking operations

• Name of legal document: Circular No. 18/2018/TT-NHNN issued on 21/8/2018 by the State Bank of Vietnamon information system security in banking operations (hereinafter referred to as the “Circular No. 18/2018/TT-NHNN”).

• Effective date: 01/01/2019.

Some contents should be noted:

• Firstly, stipulating on management of information technology assets.

Specifically, Article 6 of Circular No. 18/2018/TT-NHNN stipulates: “Management of information technology assets

1. Information technology assets include:

a) Information assets such as digital data and information which are processed and stored through the information system;

b) Physical assets such as information technology equipment, means of media, information-bearing objects and equipment that support operation of the information system;

c) Software assets such as software systems, utility software, middleware, database, application programs, source codes and development tools.

2. The institution shall make a list of all information technology assets attached to each information system as prescribed in Clause 3 Article 4[1] herein. Annual review and update of such list is required.

3. According to the importance of information systems, the institution shall adopt management and protection methods suitable for each type of information technology asset.

4. According to classification of information technology assets prescribed in Clause 1 this Article, the institution shall set up and adopt regulations on asset management and use as prescribed in Article 7, 8, 9, 10 and 11 herein.”

• Secondly, stipulating work which institution[2] shall do When an employee in an institution terminates or change employment.

Specifically, Article 15 of Circular No. 18/2018/TT-NHNN stipulates: “Employment termination or change

When an employee in an institution terminates or change employment, such institution shall:

1. determine responsibilities of such employee at the date of employment termination or change

2. request such employee to hand over the information technology assets

3. revoke the right to access to the information system of the employee resigning from his/her job

4. timely change the access right to information system of the employee who changes his/her employment in order to conform to the principle that such right is given adequately for him/her to perform the assigned duty.

5. at least every six months, carry out review, inspection and comparison between personnel management department and department in charge of management of granting and revocation of rights to access to information systems for the purpose of complying with regulations specified in Clause 3 and 4 this Article

6. inform the State Bank of Vietnam (Information Technology Authority) of cases in which individuals working in information technology sector of the institution have been disciplined in forms of dismissal, discharge or legal proceedings on account of violations against information security regulations.”

• Thirdly, stipulating on criteria for selecting a third party providing the cloud computing service.

Specifically, Article 33 of Circular No. 18/2018/TT-NHNN stipulates: “Criteria for selecting a third party providing the cloud computing service

Any third party shall be selected if it:

1. is an enterprise;

2. owns information technology infrastructure corresponding to the service requested by the institution which:

a) complies with provisions of Vietnamese laws;

b) is granted an unexpired international certificate of information security.”

2.2. Circular No. 19/2018/TT-NHNN guiding for foreign exchange management for Viet Nam – China border trade

• Name of legal document: Circular No. 19/2018/TT-NHNN issued on 28/8/2018 by the State Bank of Vietnam guiding for foreign exchange management for Viet Nam – China border trade (hereinafter referred to as the “Circular No. 19/2018/TT-NHNN”).

• Effective date: 12/10/2018.

Some contents should be noted:

• Firstly, stipulating on subjects of application of Circular No. 19/2018/TT-NHNN.

Specifically, Article 2 Circular No. 19/2018/TT-NHNN  stipulates: “Subjects of application

1. Vietnamese and Chinese traders conducting Viet Nam – China border trade activities.

2. Vietnamese border residents, Chinese border residents conducting Viet Nam – China border trade activities.

3. Commercial banks and branches of foreign banks are allowed to conduct foreign exchange transactions in Viet Nam (hereinafter referred to as licensed banks).

4. Branches of licensed banks located in border regions and border-gate economic zones of Viet Nam – China (hereinafter referred to as border – bank branches).

5. Organizations trading in duty-free goods and services providing in isolated areas at international border gates and bonded warehouses at border areas and border-gate economic zones of Viet Nam and China.

6. Other organizations and individuals involved in payment activities in Viet Nam – China border trade.”

• Secondly, stipulating on export and import of CNY in cash and VND in cash.

Specifically, Article 15 Circular No. 19/2018/TT-NHNN  stipulates: “Export and import of CNY in cash and VND in cash

1. Banks allowed have border-bank branches may export and import CNY in cash and VND in cash in order to regulate the amount of cash to serve business activities of border-bank branches.

2. Export and import CNY in cash and VND in cash are performed through international border gates and principal border gates in the border areas and border-gate economic zones of Viet Nam and China.

3. Banks allowed have border-bank branches when exporting or importing CNY cash and VND cash, have the following responsibilities:

a) Making border-gate customs declaration according to the provisions of law;

b) Taking measures to manage, supervise and ensure safety in the delivery, preserve and transport CNY in cash and in VND;

c) Bearing risks related to the export and import of cash.”

• Thirdly, stipulating on responsibilities of licensed banks in guiding for foreign exchange management for Viet Nam – China border trade.

Specifically, Article 19 of Circular No. 19/2018/TT-NHNN stipulates: “Responsibilities of licensed banks

1. Licensed banks shall have the responsibilities:

a) To fully execute and guide customers to strictly observe the provisions of this Circular;

b) To examine and keep documents in compatibility with actual transactions so as to ensure the provision of foreign exchange services is performed in compliance with right purposes and the provisions of law.

2. Banks allowed have border – bank branches apart from the responsibilities stipulated in Clause 1 of this Article shall also be responsible for:

a) Posting up and announcing the buying and selling exchange rates of CNY/VND at the border – bank branches according to the regulations of the State Bank of Vietnam;

b) Issuing internal documents on entrusted payment activities in CNY and payment activities in CNY in the licensed banking system in accordance with the provisions of this Circular and relevant laws;

c) Observing the provisions of Vietnamese law and treaties to which Vietnam is a contracting party upon the payment cooperation agreement with a Chinese bank.”

2.3. Circular No. 20/2018/TT-NHNN regulating on monitoring of payment systems

• Name of legal document: Circular No. 20/2018/TT-NHNN issued on 30/8/2018 by the State Bank of Vietnam regulating on monitoring of payment systems (hereinafter referred to as the “Circular No. 20/2018/TT-NHNN”).

• Effective date: 01/01/2019.

Some contents should be noted:

• Firstly, explaining the terms “Payment system”, “Important payment system”.

Specifically, Clause 1, Clause 2 Article 3 of Circular No. 20/2018/TT-NHNN stipulates:

“1. Payment system means a system consisting of payment facilities, regulations, procedures, technical infrastructure, operation organizations and participating members for handling, clearing, settling payment transactions arising between participating members.

2. Important payment system is the payment system that plays a key role in servicing the demand of payment in the economy, potentially results in systemic risk, meets at least one in the following criteria:

a) It is the only payment system or accounts for a large proportion of the total payment value compared to the same type payment systems; or

b) It is a system processing high-value payment transactions; or

c) The system is used to settle accounts for other payment systems or for financial market transactions.

Important payment systems defined in this Circular include: the National Interbank Electronic Payment System; Foreign currency payment system (operated by the Joint Stock Commercial Bank for Foreign Trade of Vietnam); payment system for securities trading; system for compensation, financial transaction switching.”

• Secondly, stipulating on supervision contents of the National Interbank Electronic Payment System.

Specifically, Article 8 of Circular No. 20/2018/TT-NHNN stipulates: “The National Interbank Electronic Payment System

1. The general operation of the National Interbank Electronic Payment System, including information on the duration of operation, status of participants, payment status of each service provided (high-value payment services, low-value payment services, foreign currency payment services, net settlement services for other payment systems).

2. Risk situation arising and risk management for operational risk, credit risk, liquidity risk and settlement risk of the National Interbank Electronic Payment System.

3. The observance of legal provisions relating to the management and operation of the National Interbank Electronic Payment System.

4. Changes in the operation of the National Interbank Electronic Payment System, including changes in system features, procedures and internal procedures.”

• Thirdly, issuing annexes for implementing Circular No. 20/2018/TT-NHNN.

Specifically,

• Appendix I issued together with Circular No. 20/2018/TT-NHNN on the operation data of the National Interbank Electronic Payment System.

• Appendix II issued together with Circular No. 20/2018/TT-NHNN on the operation data of Foreign currency payment system; payment system for securities trading; system for compensation, financial transaction switching.

• Appendix III issued together with Circular No. 20/2018/TT-NHNN on the report on operation of the important payment system.

• Appendix IV issued together with Circular No. 20/2018/TT-NHNN on incident notification.

• Appendix V issued together with Circular No. 20/2018/TT-NHNN on the report on evaluation of the payment system.

2.4. Decision No. 1403/QĐ-TCT on promulgation of data exchange standards between the General Department of Taxation and Commercial Banks and The unit meeting the electronic tax payment in the form of submission via Internet Banking

• Name of legal document: Decision No. 1403/QĐ-TCT issued on 30/8/2018 by The General Director of Taxation on promulgation of data exchange standards between the General Department of Taxation and Commercial Banks and The intermediate payment unit meeting the electronic tax payment in the form of submission via Internet Banking (hereinafter referred to as the “Decision No. 1403/QĐ-TCT”).

• Effective date: 30/8/2018.

The content should be noted: Issuing the “Data exchange standards between the General Department of Taxation and Commercial Banks and The unit meeting the electronic tax payment in the form of submission via Internet Banking” attached to the Decision No. 1403/QĐ-TCT (hereinafter referred to as “Data Exchange Standard”). Data Exchange Standard includes some following contents: Exchange data between the General Department of Taxation and Commercial Banks, The intermediate payment unit (Section II of Data Exchange Standard), Data format (Section III of Data Exchange Standard), Category Types (Section IV Data Exchange Standard).

2.5. Circular No. 21/2018/TT-NHNN amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system

• Name of legal document: Circular No. 21/2018/TT-NHNN issued on 31/8/2018 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system.

(Circular No. 21/2018/TT-NHNN issued on 31/8/2018 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system hereinafter referred to as the “Circular No. 21/2018/TT-NHNN”.

Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system hereinafter referred to as the “Circular No. 37/2016/TT-NHNN”.)

• Effective date: 31/8/2018.

Some contents should be noted:

• Firstly, amending and supplementing the effect of Circular No. 37/2016/TT-NHNN.

Specifically, Article 1 of Circular No. 21/2018/TT-NHNN stipulates: “Effect

1. This Circular takes effect on November 1st, 2019.

2. From the effective date of this Circular, the following documents shall expire:

3. a) The State Bank Governor’s Circular No. 23/2010/TT-NHNN dated November 9th, 2010 providing for the management, operation and use of the inter-bank electronic payment system;

4. b) The State Bank Governor’s Circular No. 13/2013/TT-NHNN dated June 11th, 2013 amending and supplementing a number of articles of Circular No. 23/2010/TT-NHNN dated November 11th, 2010 of the Governor of the State Bank providing for the management, operation and use of the inter-bank electronic payment system;

5. c) Article 6 of Circular No. 23/2011 / TT-NHNN issued on August 31st, 2011 by the Governor of the State Bank on the implementation of the simplification of administrative procedures for payment activities and fields according to the Government Resolution on simplification of administrative procedures within the scope of management functions of the State Bank.”

• Secondly, Circular No. 23/2017/TT-NHNN issued on December 29th, 2017 by the Governor of the State Bank amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN expires on August 31st, 2018.

Specifically, Article 3 of Circular No. 21/2018/TT-NHNN stipulates: “This Circular (Circular No. 21/2018/TT-NHNN) takes effect on August 31st, 2018 and replaces Circular No. 23/2017/TT-NHNN dated December 29th,  2017  of The Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system.”

2.6. Circular No. 22/2018/TT-NHNN guiding on procedures and documents for approving the list of tentative personnel of commercial banks, non-bank credit institutions and foreign bank branches

• Name of legal document: Circular No. 22/2018/TT-NHNN issued on 05/9/2018 by the State Bank of Vietnam guiding on procedures and documents for approving the list of tentative personnel of commercial banks, non-bank credit institutions and foreign bank branches (hereinafter referred to as the “Circular No. 22/2018/TT-NHNN”).

• Effective date: 01/11/2018.

Some contents should be noted:

• Firstly, proving for necessary documents in the dossier of request for approving the list of tentative personnel of credit institutions.

Specifically, Article 6 of Circular No. 22/2018/TT-NHNN stipulates that dossier of request for approving the list of tentative personnel of credit institutions includes:

1. “Documents of the credit institution shall be proposed to the State Bank for approval of the list of tentative personnel” (Clause 1 of Article 6 of Circular No. 22/1018/TT-NHNN);

2. “The written approval of tentative personnel list of credit institutions (for the Board of Directors, the Board of members and the Control Board must clearly state the term)” (Clause 2 of Article 6 of Circular No. 22/1018/TT-NHNN);

3. “The personal background of the personnel proposed to be elected or appointed according to the form in Appendix 01 attached to this Circular” (Clause 3 of Article 6 of Circular No. 22/1018/TT-NHNN);

4. “The judicial record of the personnel proposed to be elected or appointed” (Clause 4 of Article 6 of Circular No. 22/1018/TT-NHNN);

5. “The list of related persons of the personnel proposed to be elected or appointed according to the form in Appendix 02 attached to this Circular” (Clause 5 of Article 6 of Circular No. 22/1018/TT-NHNN);

6. “Copies of diplomas and certificates proving the professional qualifications of personnel proposed for election or appointment, of which the diploma of Vietnamese nationality personnel issued by a foreign educational establishment must be approved by the Ministry of Education and Training recognize in accordance with relevant laws” (Clause 6 of Article 6 of Circular No. 22/1018/TT-NHNN);

7. “Documents evidencing the satisfaction of criteria and conditions for personnel who intend to hold the post of member of the Board of Directors, the Board of members of the credit institution as stipulated in Point d[3] Clause 1 of Article 50 of the Law on credit institutions” (Clause 7 of Article 6 of Circular No. 22/1018/TT-NHNN);

8. “Documents evidencing the satisfaction of criteria and conditions for personnel expected to hold the post of General Director (Director) of the credit institution as stipulated in Point d[4] Clause 4 of Article 50 of the Law on credit institutions” (Clause 8 of Article 6 of Circular No. 22/1018/TT-NHNN);

9. “Documents proving the satisfaction of standards and conditions “having at least 03 years working directly in banking, finance, accounting or auditing fields” with regard to personnel expected to hold the post of member of the Control Board Control of credit institutions as stipulated in Point c[5] Clause 3 of Article 50 of the Law on credit institutions: Documents of the authorized representative of the unit where the personnel has been or is working confirming the direct working personnel in banking, finance, accounting or auditing fields and the working time in the field, or copies of documents proving the field of working, working time of personnel in the fields” (Clause 9 of Article 6 of Circular No. 22/1018/TT-NHNN);

10. “For personnel who are expected to be elected or appointed under the cases specified at Points e[6] and [7]f, Clause 2, Article 33 of the Law on credit institutions: Documents of competent agencies appointing personnel who are expected to act as management representatives contributed capital of the State at credit institutions” (Clause 10 of Article 6 of Circular No. 22/1018/TT-NHNN).

• Secondly, issuing written forms of documents in the dossier of request for approving the list of tentative personnel of credit institutions.

Specifically, form of personal background, form of table of related person list, form of Notification of List of people elected, appointment to be members of Board of Directors, the Board of members, the Control Board, General Director (Director), etc. are stipulated in Appendixes 01, 02, 03, etc. respectively issued together with Circular No. 22/2018/TT-NHNN.

2.7. Decree No. 117/2018/NĐ-CP on keeping confidential and providing customer information of credit institutions and foreign bank branches

• Name of legal document: Decree No. 117/2018/NĐ-CP issued on 11/9/2018 by Goverment on keeping confidential and providing customer information of credit institutions and foreign bank branches (hereinafter referred to as the “Decree No. 117/2018/NĐ-CP”).

• Effective date: 01/11/2018.

Some contents should be noted:

• Firstly, providing for the principles of confidentiality and supply of customer information by credit institutions and foreign bank branches.

Specifically, Article 4 of Decree No. 17/2018/NĐ-CP stipulates: “Principles of confidentiality and supply of customer information

1. Customer information of credit institutions and foreign bank branches must be kept secret and only be provided in accordance with the provisions of the Law on credit institutions 2010, amended and supplemented in 2017, this Decree and related laws.

2. Credit institutions and branches of foreign banks are not allowed to provide identification customer information when accessing banking services, including secret codes, biometrics data, and access passwords of customers and other identification customer information for any agency, organization or individual, unless agreed by the customer in writing or in another form as agreed with the customer.

3. State agencies, other organizations and individuals may request credit institutions and foreign bank branches to supply customer information according to the right purposes, contents, scope and competence as prescribed of the law or the acceptance of the customer and are liable for the request for the provision of customer information.

4. State agencies, other organizations and individuals must keep customer information confidential, use customer information for the right purpose when requesting information and not provide to third parties without approval of customers, except for cases provided under the provisions of law.

5. Agencies, organizations and individuals must archive and preserve according to the law provisions on archive and preservation of dossiers and documents on customer information, dossiers of request for supply of customer information, the delivery of customer information.”

• Secondly, stipulating cases of providing customer information for organizations and individuals.

Specifically, Article 11 of Decree No. 117/2018/NĐ-CP stipulates: “Cases of providing customer information

1. Credit institutions and foreign bank branches may only provide customer information to other organizations and individuals in one of the following cases:

a) Other organizations and individuals may request credit institutions or foreign bank branches to supply customer information specified in laws and resolutions of the National Assembly.

b) Approved by the customers in writing or in another form as agreed with the customers.

2. Credit institutions and foreign banks branches shall be responsible for providing customer information to their customers or their lawful representatives.”

• Thirdly, regulating the rights and responsibilities of credit institutions and foreign bank branches in keeping confidential and providing customer information.

Specifically, Article 14 of Decree No. 117/2018/NĐ-CP stipulates: “Rights and responsibilities of credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches have the following rights:

a) Requesting state agencies, other organizations or individuals to supplement information and documents requesting the supply of customer information in accordance with the provisions of this Decree;

b) Refusing to supply customer information to other State bodies, organizations or individuals for requests for supply of customer information not being in accordance with the provisions of laws or this Decree or requests for supply customer information being duplicated, not being within the scope of customer information that the credit institution or foreign bank branches are maintaining in accordance with the law.

2. Credit institutions and foreign bank branches have the following responsibilities:

a) Providing right scope of customer information provided honestly, fully, timely for the right subjects;

b) Ensuring safety and confidentiality of customer information in the process of supplying, managing, using and storing customer information;

c) Settling complaints of customers in the supply of customer information according to law provisions;

d) Organizing the supervision, inspection and handling of violations of internal regulations on keeping secret, archiving and supplying customer information;

e) Taking responsibility according to the provisions of law, for cases of violating the provisions of this Decree and relevant laws.”

2.8. Circular No. 23/2018/TT-NHNN providing for the reorganization and revocation of licenses and liquidation of assets of people’s credit funds

• Name of legal document: Circular No. 23/2018/TT-NHNN issued on 14/9/2018 by the State Bank of Vietnam providing for the reorganization and revocation of licenses and liquidation of assets of people’s credit funds (hereinafter referred to as the “Circular No. 23/2018/TT-NHNN”).

• Effective date: 01/11/2018.

Some contents should be noted:

• Firstly, providing for the principles of reorganizing people’s credit funds.

Specifically, Article 6 of Circular No. 23/2018/TT-NHNN stipulates: “Principles of reorganizing people’s credit funds

1. Complying with the provisions of this Circular and relevant law provisions.

2. The reorganization of people’s credit funds shall be effected on the basis of the reorganization plans approved by the State Bank in accordance with the provisions of law.

3. Ensuring the safe and continuous operation of people’s credit funds; ensuring the legitimate rights and interests of members of the people’s credit funds and customers in the course of reorganization.

4. The transfer or sale of assets in the process of reorganizing the people’s credit funds must be public and transparent, comply with law provisions and the agreement of parties, ensure the property safety and does not affect the interests of people’s credit funds to reorganize, organizations and individuals involved in the reorganization.

5. People’s credit funds after the reorganization inherit of the rights and obligations of the people’s credit funds reorganized in accordance with the provisions of law and agreements between the parties.

6. The licenses of the divided people’s credit funds or the people’s credit funds participating in the consolidation shall cease to be effective when new people’s credit funds are inaugurated. The license of the merged people’s Credit Fund shall cease to be effective when the people’s credit fund for merger completes the procedures for changing the registration of the cooperative.”

• Secondly, providing for cases of revocation of licenses of people’s credit funds.

Specifically, Article 16 of Circular No. 23/2018/TT-NHNN stipulates: “Cases of revocation of licenses

1. People’s credit funds voluntarily apply for dissolution when they are able to repay all debts and fulfill other property obligations.

2. A dossier of application for a people’s credit fund has fraudulent information so as to be eligible for a license.

3. People’s credit funds operate in contravention of the contents prescribed in their permits.

4. People’s credit funds seriously violate the law provisions on limits and prudential ratios in operation.

5. People’s Credit Funds fail to implement or implement inadequately handling decisions of the State Bank’s branches to ensure safety in banking operations.

6. People’s credit funds are divided, merged, consolidated or bankrupt.

7. People’s Credit Funds are expired but did not apply for extension or apply for extension but have not been approved in writing by the State Bank’s branches.”

[1] “Article 4. Classification of information and information system

3. Institutions shall classify their information system by importance prescribed in Clause 2 this Article. The list of information system categorized by importance must be approved by the legal representative of such institution.”

[2] Institution includes credit institutions (except for people’s credit funds and microcredit institutions), branches of foreign banks and intermediary payment service providers (Clause 2, Article 1 Circular No. 18/2018/TT-NHNN).

[3] “Has at least 03 years’ experience of working as a manager or executive of a credit institution, at least 05 year’s experience of working as an executive of a finance, banking, accounting or audit enterprise or an enterprise whose equity is not smaller than the legal capital of a credit institution, or at least 05 years’ experience of working in a finance, banking accounting or audit department.”

[4] “Has at least 03 years’ experience of working as a manager or executive of a credit institution, at least 05 year’s experience of working as an executive of a finance, banking, accounting or audit enterprise or an enterprise whose equity is not smaller than the legal capital of a credit institution, or at least 05 years’ experience of working in a finance, banking accounting or audit department.”

[5] “Holding a tertiary or higher degree in economics, business administration, law, accounting or audit: having at least 3 years working directly in banking, finance, accounting or audit”

[6] “Cadres and civil servants and managers of division or higher level of enterprises in which the State holds 50% or more of the charter capital, except those appointed to represent the State’s capital share in the credit institution”

[7] “Officers, non-commissioned officers, professional army men and defense workers of agencies and units under the Vietnam People’s Army: officers, professional non-commissioned officers of agencies and units under the Vietnam People’s Police, except those appointed to represent the State’s capital share in the credit institution”

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/07/2018

1.1. Circular No. 04/2018/TT-NHNN amending and supplementing certain articles of the Circular No. 08/2017/TT-NHNN dated 01/08/2017 of the Governor of the State Bank of Vietnam on banking supervisory processes and procedures

• Name of legal document: Circular No. 04/2018/TT-NHNN issued on 12/03/2018 by the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 08/2017/TT-NHNN dated 01/08/2017 of the Governor of the State Bank of Vietnam on banking supervisory processes and procedures.

• Effective date: 01/07/2018.

Some contents should be noted:

• Firstly, adding the “Early intervention action” measure to remedial measures for banking supervision.

Specifically, Clause 1, Article 1 of Circular No. 04/2018/TT-NHNN amended and supplemented Article 17 of Circular No. 08/2017/TT-NHNN as follows: “Remedial measures for banking supervision include:

1. Recommendations and warnings.

2. Administrative penalties prescribed by laws.

3. Early intervention action.

4. Other banking supervisory actions that are suggested to competent authorities in accordance with laws.”

• Secondly, stipulating the cases of “Early intervention action”.

Specifically, Clause 2, Article 1 of Circular No. 04/2018/TT-NHNN added Article 18a to Article 18 of Circular 08/2017/TT-NHNN as follows: “…on imposition of early intervention action on entities subject to banking supervision that fall into one of the situations referred to in Clause 1 Article 130a of the (amended and supplemented) Law on Credit Institutions…” (Clause 1, Article 130a of the Law on Credit Institutions: 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.”)

1.2. Circular No. 14/2018/TT-NHNN guiding the implementation of measures for maganing monetary policy instruments to support credit institutions lending for agriculture and rural development

• Name of legal document: Circular No. 14/2018/TT-NHNN issued on 29/05/2018 by the Governor of the State Bank of Vietnam guiding the implementation of measures for maganing monetary policy instruments to support credit institutions lending for agriculture and rural development.

• Effective date: 13/07/2018.

The content should be noted: To stipulate cases in which credit institutions shall apply the reserve requirements ratio for supporting deposits in Vietnam Dong lower than normal reserve requirements prescribed by the State Bank of Vietnam.

Specifically, Point a, Clause 2, Article 3 of Circular No. 14/2018/TT-NHNN stipulates: “The reserve requirements applied to the deposit in Vietnam Dong shall be lower than normal reserve requirements prescribed by the State Bank of Vietnam (hereinafter referred to as the State Bank) which vary according on each type of credit institutions and over time meeting the following criteria:

i) For the credit institution whose ratio of loan outstanding for agricultural, rural development over the average total loan outstanding (hereinafter referred to as the average credit ratio for agriculture and rural development) is 70% and higher: The reserve requirement is requested by such credit institution but not lower than 1/20 (one twentieth) of the reserve requirements applied to each deposit at such credit institution prescribed by the State Bank;

ii) For the credit institution whose the average credit ratio for agriculture and rural development is from 40% to less than 70%: The reserve requirement is requested by such credit institution but not lower than 1/5 (one fifth) of the reserve requirement applied to each deposit at such credit institution prescribed by the State Bank;”.

2. Legal documents issued in June 2018

Circular No. 15/2018/TT-NHNN amendments to the Circular No. 22/2016/TT-NHNN dated 30/06/2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks

• Name of legal document: Circular No. 15/2018/TT-NHNN issued on 18/06/2018 by the Governor of the State Bank of Vietnam amendments to the Circular No. 22/2016/TT-NHNN dated 30/06/2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks.

• Effective date: 02/08/2018.

Some contents should be noted:

• Firstly, (i) amending and supplementing the internal control over the corporate bond purchase of internal regulations on corporate bond purchase and (ii) adding content related to the regulation of potential risk areas and credit policies, investment in the contents of internal regulations on corporate bond purchase.

Specifically, Clause 1, Article 1 of Circular No. 15/2018/TT-NHNN amended and supplemented Clause 2, Article 3 of Circular No. 22/2016/TT-NHNN as follows: “Amendments to Point d and addition of Point đ to Clause 2 Article 3:

d) Regulations on internal control of purchase of corporate bonds, especially bonds issued for implementation of programs/ projects in sectors posing potential risks according to the evaluation by credit institutions/ branches of foreign banks so as to discover risks or violations and ensure the recovery of corporate bond principals and interests (Point d, Clause 2, Article 3 of Circular No. 22/2016/TT-NHNN stipulates: “…2. The eligible credit institution must have a system of internal credit rating, including the credit rating of corporate bond issuers and issue an internal regulations on purchase of corporate bonds in accordance with this Circular and relevant law provisions, at least including:

…d) Internal control of purchase of corporate bonds.”)

đ) Specific regulations on sectors posing potential risks and credit/ investment policies in these sectors.”

• Secondly, stipulating additionally the principle of buying corporate bonds of credit institutions and branches of foreign banks.

Specifically, Clause 2, Article 1 of Circular No. 15/2018/TT-NHNN stipulates: “Addition of Clause 6 to Article 3 (Circular No. 22/2016/TT-NHNN):

6. Credit institutions and branches of foreign banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer.”

• Thirdly, abolishing regulations on corporate bonds purchased.

Specifically, Article 2 of Circular 15/2018/TT-NHNN stipulates: “Article 4 of Circular No. 22/2016/TT-NHNN is abrogated” (Article 4 of Circular No. 22/2016 /TT-NHNN stipulates: “Types of corporate bonds permitted to be bought:

1. Bonds that are issued in accordance with provisions of laws on the issuance of corporate bonds.

2. Bonds that are issued in accordance with provisions of laws on public securities offering, except for the case prescribed in Clause 3 Article 6 of this Circular”).

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 07/2018 AND 08/2018

1.1. Circular No. 27/2017/TT-NHNN amending and supplementing certain articles of the Circular No. 03/2013/TT-NHNN providing on credit information activity of the State Bank of Vietnam

• Name of legal document: Circular No. 27/2017/TT-NHNN issued on 31/12/2018 by the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 03/2013/TT-NHNN dated 28/01/2013 of the Governor of the State Bank of Vietnam on credit information activity of the State Bank of Vietnam.

• Effective date: 01/07/2018.

Some contents should be noted:

• Firstly, amending and supplementing of words that defined in Article 3 of Circular No. 03/2013/TT-NHNN.

Specifically, Clause 1, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Article 3 (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

1. Clause 4, Article 3[1] is amended and supplemented as follows:

“4. Borrowers include legal entities or individuals that have credit relations with credit institutions or foreign bank branches.”

1. Point a, Clause 8, Article 3[2] is amended and supplemented as follows:

“a. The companies with function of debt trading, companies of debt management and asset exploitation, companies of credit information, enterprises providing insurance services, enterprises of securities.”

1. To add Clause 12 to Article 3 as follows:

“12. Foreign credit information organizations are organizations established and operating under foreign laws on credit information.””

• Secondly, amending and supplementing the provisions on the operation of credit information stipulated in Article 5 of Circular No. 03/2013/TT-NHNN.

Specifically, Clause 2, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Clause 1 Article 5[3] (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

“1. Abiding by provisions of Law on protection of State secrets, personal secrets and other relevant law provisions when providing and exploiting credit information.””

• Thirdly, amending and supplementing the regulations on norm groups that credit institutions, foreign banks’ branches supply for the CIC[4].

Specifically, Clause 3, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Clause 1, Article 7[5] (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

“1. Credit institutions, foreign banks’ branches supply for the CIC all the credit information norm system specified in Appendix enclosed with this Circular and classified into norm groups as follows:

a) Identification information;

b) Information of credit contracts;

c) Information of credit relationship;

d) Information of account status of credit cards;

e) Information of loan security;

g) Annual financial information of the borrower being an enterprise, including the balance sheet, the report on business results and the cash flow report as prescribed by the Finance Ministry;

h) Information of bond investment in borrowers being enterprises.””

• Fourthly, supplementing the provisions on subjects of credit information use (Clause 4, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of the Credit Information Center (Clause 5, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing the provisions on rights and obligations of Credit institutions, foreign banks’ branches (Clause 6, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of voluntary organizations joining the credit information system (Clause 7, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of borrowers (Clause 8, Article 1 of Circular No. 27/2017/TT-NHNN).

• Fifthly, replacing the Credit Information System Appendix issued in conjunction with Circular No. 03/2013/TT-NHNN with Appendix 1 issued in conjunction with Circular No. 27/2017/TT-NHNN.

Specifically, Clause 1, Article 2 of Circular No. 27/2017/TT-NHNN stipulates: “Replacing the Credit Information System Appendix issued in conjunction with Circular No. 03/2013/TT-NHNN with Appendix 1 issued in conjunction with this Circular.”

• Sixthly, changing the phrase “Credit Information Center”, “The director of Credit Information Center”, “Department of Monetary statistics and Forecast” and “Credit Department”.

Specifically, Clause 3, Clause 4, Article 2 of Circular No. 27/2017/TT-NHNN stipulate:

“2. Changing the phrase “Credit Information Center” into “National Credit Information Center of Viet Nam”; “The director of the Credit Information Center” to “The director of National Credit Information Center of Vietnam” in Article 1, Article 12, Clause 1, Article 21 of Circular No. 03/2013/TT-NHNN.”

3. Changing the phrase “Department of Monetary statistics and Forecast” into “Department for Forecast and Statistics”; “Credit Department” to “Credit Department of Economic Branches” at Point b, d, Clause 2, Article 13 of Circular No. 03/2013/TT-NHNN.”

1.2. Decree No. 42/2018/NĐ-CP abolishing a number of Government Decrees in the banking

• Name of legal document: Decree No. 42/2018/NĐ-CP issued on 12/03/2018 by Government abolishing a number of Government Decrees in the banking.

• Effective date: 01/07/2018.

Content should be noted: Decree No. 42/2018/NĐ-CP abolished a number of Government Decrees in the banking.

Specifically, Article 1 of Decree No. 42/2018/NĐ-CP stipulates: “Abolishing a number of Government Decrees in the banking, include:

1. Decree No. 14/CP issued on 02/03/1993 by Government promulgating the provisions on policies for production households to borrow capital for development of agriculture, forestry, fishery and rural economy.

2. Decree No. 48/2001/NĐ-CP issued on 13/8/2001 of Government on organization and operation of People’s Credit Funds.

3. Decree No. 69/2005/NĐ-CP issued on 26/05/2005 by Government amending and supplementing a number of articles of the Decree No. 48/2001/NĐ-CP issued on 13/8/2001 by Government on organization and operation of People’s Credit Funds.

4. Decree No. 22/2006/NĐ-CP issued on 28/02/2006 by Government on organization and operation of foreign bank branches, joint-venture banks, banks with 100% foreign capital, and representative offices of foreign credit institutions in Viet Nam.

5. Decree No. 59/2009/NĐ-CP issued on 16/7/2009 by Government on organization and operation of commercial banks.

6. Decree No. 05/2010/NĐ-CP issued on 18/01/2010 by Government stipulating the application of the Bankruptcy law to credit institutions.”

1.3. Decision No. 1417/QĐ-NHNN approving simplification of business conditions under the management function of the State Bank of Vietnam

• Name of legal document: Decision No. 1417/QĐ-NHNN issued on 09/07/2018 by the Governor of the State Bank of Vietnam approving simplification of business conditions under the management function of the State Bank of Vietnam.

• Effective date: 09/07/2018.

Some contents should be noted:

• Firstly, 257 business conditions under the management function of the State Bank of Vietnam are reduced, simplified. In particular, Decision No. 1417/QĐ-NHNN reduces, simplifies 84 conditions for business activities of commercial banks; 52 conditions for business activities of non-bank credit institutions; 59 conditions for business activities of cooperative banks, people’s credit funds and microfinance institutions; 8 conditions for providing intermediary payment services; 13 conditions for providing credit information services; 19 conditions of foreign exchange activities of organizations other than credit institutions; 12 conditions for gold trading; 6 conditions for printing and minting; 4 conditions for debt trading business[6].

• Secondly, stipulating conditions for founding members and owners of foreign credit institutions of joint venture banks and banks with 100% foreign capital issued establishment and operation Licenses in Viet Nam.

Specifically, Section I.3 of the Scheme on reduction and simplification of business conditions under the management function of the State Bank (Promulgated together with Decision No. 1417/QĐ-NHNN issued on 09/07/2018) stipulates: “Conditions applicable to a founding member, owner as a foreign credit institutions (35 – 41):

35. Not to seriously violate provisions on banking activities and other provisions of applicable laws of its native country within 05 latest consecutive years prior to the year applying for the license till the issuance of the license;

36. To have experience in international operation, is ranked from average and stable upwards by international credit rating organizations, can prove the ability to perform financial commitments and operate normally even when economic situation, condition faces adverse changes;

37. To be profitable in the 05 consecutive years preceding the year of applying for the License and as of the time of obtaining the License;

38. The total assets must be approximately USD 10 billion at the end of the year preceding the year of applying for the license;

39. To be assessed by a competent agency of the native country in respect of the capital adequacy ratio, other prudential ratios, to fully comply with regulations on risk management and making provision as provide for by the native country in the year before the year of applying for the license till the issuance of license;

40. Not to be the owner, founding member, strategic shareholder of another Vietnamese credit institution;

41. Within a period of 05 years since the issuance of the License, founding members shall be required altogether to hold 100% of the charter capital of a joint-venture bank, 100% foreign owned bank.”

1.4. Circular No. 08/2018/TT-BTP guiding the registration, provision of information on security measures, contracts and exchange of information on registration of security measures at the Registration Center for transactions and assets of Ministry of Justice National Registration Agency for Secured Transactions

• Name of legal document: Circular No. 08/2018/TT-BTP issued on 20/06/2018 by the Ministry of Justice guiding the registration, provision of information on security measures, contracts and exchange of information on registration of measures at the Registration Center for transactions and assets of Ministry of Justice National Registration Agency for Secured Transactions.

• Effective date: 04/08/2018.

Some contents should be noted:

• Firstly, providing for cases are registered the security measures upon request at the Registration Center for transactions and assets (hereinafter referred to as the Registration Center); contracts are registered upon request.

Specifically, Article 5 of Circular No. 08/2018/TT-BTP stipulates: “Cases of registration security measures, contracts:

1. Registration of security measures upon request at the Registration Center includes the following cases:

a) Mortgaging of movable property, except for aircraft or seagoing vessels, including future mortgage of movable property;

b) Reserving ownership in the case of sale and purchase of movable property, except for aircraft or vessels with reservation of ownership;

c) Modifying, correcting or deleting registration of registered security measures mentioned at Points a and b, Clause 1 of this Article;

d) Written notice of the disposal of the security property for the registered security measure.

2. Contracts (except for contracts for the purchase of civil aircraft in accordance with the law on aviation, financial leasing contracts for aircraft in accordance with the law on finance leasing, hire purchase contracts in accordance with the law on maritime shipping, finance leasing contracts with respect to seagoing vessels, which do not fall into the cases specified in Clause 3, Article 39 of the Circular No. 30/2015/TT-NHNN issued on 25/12/2015 by The State Bank of Vietnam providing regulations on licensing, organization and operation of non-bank credit institutions and contracts relating to land use rights and assets attached to land in accordance with the law on land, housing) registered upon request include:

a) Property lease contracts with the term of one year or more or contracts with the lease term of less than one year, but the parties agree on the extension and the total leasing term (including the term extended) for one year or more;

b) Financial leasing contracts in accordance with the law on financial leasing;

c) Contracts on the transfer of the right to reclaim debts, including the right to reclaim existing debts or the right to reclaim debts, to be formed in the future;

d) Modifying, correcting errors or deleting registration of registered contracts mentioned at Points a, b and c, Clause 2 of this Article.”

• Secondly, stipulating security properties registered at the Registration Center upon request.

Specifically, Article 6 of Circular 08/2018/TT-BTP stipulates: “Assets subject to the registration of security measures, contracts

Security properties registered at the Registration Center upon request, including:

1. Automobiles, motorcycles and other motorized traffic means; railway transport means.

2. Fishing vessel; inland waterway transport means.

3. Machinery, equipment, production lines, raw materials, fuel, materials, consumer goods, other goods, precious metals, precious stones.

4. Vietnamese currency, foreign currency.

5. The capital contribution in the enterprise in accordance with the law of the enterprise.

6. Shares, bonds, promissory notes, certificates of deposits, fund certificates, checks and other valuable papers as prescribed by law, valued in money and allowed to be traded; the lawful receivables of individuals and legal persons.

7. Property rights according to the provisions of Article 115 of the Civil Code, except for land use rights, include:

a) Property rights arising from copyright, industrial property rights and plant variety rights; debt claims; rights to exploit natural resources; the right to compensation for damage arising from the contract;

b) Property rights arising from contracts of ship building; the right to compensation for damage arising from the contract for purchase and sale of aircraft or ships; the insurance beneficiary under insurance contracts for aircraft or seagoing ships;

c) Property rights include the right to claim debts, the right to demand payment, the right to compensation for damage, the right to enjoy insurance arising from dwelling house purchase/sale contracts, contracts on capital contribution to the construction of dwelling houses or contracts investment cooperation, housing business cooperation, lease contract, house purchase contract (including social housing) between organizations and individuals or between organizations, individuals and real estate business enterprises in housing construction projects in accordance with the law on housing; the property rights are the right to claim debts, the right to demand payment, the right to compensation for damages, the right to enjoy insurance arising from purchase/sale contracts, capital contribution contracts, investment cooperation contracts lease, contract for hire purchase of construction works between organizations and individuals or between organizations and individuals and real estate business enterprises in construction projects according to the provisions of law on real estate business;

d) Other property rights as prescribed by law.

8. Income, rights to receive insurance sums for security assets or other interests earned from security assets mentioned in this Article; the income earned from the operation of aircraft or ships; the income from the business, exploiting the value of land use rights or assets attached to land; accounts receivable and fees collected by the investor in the process of investment, business and development of projects on construction of dwelling houses or projects on construction of works.

9. Other movable property as provided for in Clause 2, Article 107[7] of the Civil Code.

10. Houses and other construction works which are temporarily constructed without being subject to ownership certification prescribed in Clause 2, Article 35[8] of Decree No. 43/2014/NĐ-CP issued on 15/5/2014 by Government detailing a number of articles of the Law on land, such as temporarily constructed properties during construction of construction works or construction of bamboo or foliage materials; the auxiliary works are outside the scope of the main works and serve for the management, use and operation of the main works; or other assets attached to land without provisions on ownership certification such as: pre-engineered steel buildings, workshop frames, net houses, membrane houses; wells; pool; the yard; fence; power poles; power station; pump station, transmission system, power transmission; drainage system or water supply system; internal roads and other auxiliary works.

Thirdly, other contents relating to registration, provision of information on security measures, contracts and exchange of information on registration of security measures at Registration Centers: database use codes on security measures, asset declaration, registration forms…

[1] “Article 3. Interpretation of terms

In this Circular, the following terms are construed as follows:

…4. Borrowers include organizations, individuals or other subject as prescribed by law, having credit relationship with credit institutions, foreign banks’ branches.”

[2] “Article 3. Interpretation of terms

In this Circular, the following terms are construed as follows:

…8. Organizations voluntarily joining the credit information system (hereinafter referred to as voluntary organizations) include:

a) The Vietnam Development Bank, companies with function of debt trading, companies of debt management and asset exploitation, companies of credit information, enterprises providing insurance services, enterprises of securities;”

[3] “Article 5. Principles of credit information activity

1. Strictly abide by provisions of law.”

[4] Credit Information Center (CIC)

[5] “Article 7. Supply of credit information

1. Credit institutions, foreign banks’ branches supply for the CIC all the credit information normsystem specified in Annex enclosed with this Circular and classified into normgroups as follows:

a) Information to identify the borrowers who are individuals, business households; information to identify the borrowers being enterprises, other organizations; information to identify the owners of credit card;

b) Information of credit contracts;

c) The borrowers’ information of credit relationship;

d) Information of account status of credit cards;

e) Information ofloan security;

g) Financial information of borrowers being enterprises;

h) Information of bond investment in borrowers being enterprises.”

[6] State Bank of Viet Nam, “The SBV has approved the simplification of 257 business conditions under SBV’s management function”, [https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu/ttsk/ttsk_chitiet?centerWidth=80%25&dDocName=SBV344983&leftWidth=20%25&rightWidth=0%25&showFooter=false&showHeader=false&_adf.ctrl-state=14ojjbc42_4&_afrLoop=397120084870000#%40%3F_afrLoop%3D397120084870000%26centerWidth%3D80%2525%26dDocName%3DSBV344983%26leftWidth%3D20%2525%26rightWidth%3D0%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%26_adf.ctrl-state%3Ddqomvf35t_4] (accessed on 23/7/2018)

[7] Clause 2 of Article 107 of the Civil Code stipulates: “2. Moveable property is property which is not immovable property.”

[8] Clause 2 of Article 35 of Decree No. 43/2014/NĐ-CP stipulates: “Land – attached assets ineligible for ownership certification upon grant of certificates of land use rights and ownership houses and other land – attached assets

Land – attached assets are ineligible for ownership certification in one of the following cases:

…2. Houses or other construction facilities which are temporarily built during the construction of main facilities or which are built with bamboo, leaf or earth; and auxiliary facilities which are outside the premises of main facilities and serve the management, use and operation of main facilities;”