The DECREE on the Organization, the activities of foreign credit organizations, representative offices of foreign credit institutions in Vietnam _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the GOVERNMENT pursuant to the law on Government Organization, 30 September 1992;

Pursuant to the law the State Bank of Vietnam no. 01/1997/QH10 on 12 December 1997;

Pursuant to the law of credit institutions number 02/1997/QH10 on 12 December 1997;

According to the proposal of the Governor of the State Bank, DECREES: chapter one: GENERAL PROVISIONS article 1. This Decree regulates the Organization and activities of foreign credit organizations, representative offices of foreign credit institutions in Vietnam.

Article 2.

1. foreign credit institutions are allowed to operate in Vietnam under the following form: a) the foreign bank branch;

b) venture Bank;

c) non-bank credit organization: financial leasing company joint venture; Financial leasing company 100% of foreign capital; Venture finance company; Financial company 100% foreign-owned and non-bank credit organization.

2. Credit institutions abroad are placed representative offices in Vietnam.

Article 3. The State Bank of Vietnam (hereinafter the Bank) is granted and revoked license, management, inspection activities of the kind of foreign credit organizations operating in Vietnam. The licensing was reviewed according to the requirements of economic development and the financial market of Vietnam.

Article 4.

1. foreign bank branch is depend of foreign banks, foreign bank guarantee responsible for all the obligations and commitments of the branch in Vietnam. Foreign bank branches have the rights and obligations prescribed by the law of Vietnam, operating under a licence to open a branch and the relevant provisions of the law of Vietnam.

2. The branch of a foreign bank was allowed to operate in Vietnam as the unit is organized independently of each other, depend on foreign banks and foreign banks are funding the operation.

Article 5.

1. the joint venture Bank is the Bank was established with capital of Vietnam Party (consisting of one or more Bank of Vietnam) and foreign Parties (including one or more foreign bank) on the basis of joint venture agreement. The Bank is a legal venture Vietnam, headquartered in Vietnam, operating under license and operation and the related regulations of the law of Vietnam.

2. The branch of a bank venture is dependent of venture Bank.

Article 6.

1. financial leasing company, venture, venture finance companies are non-bank credit institutions established by venture capital of Vietnam and the foreign Party's Party on the basis of the joint venture contract is legal, Vietnam, headquartered in Vietnam, operating under license and operation and the related regulations of the law Encyclopedia South.

2. financial leasing company 100% foreign-owned finance companies, 100% foreign capital was founded with 100% of foreign credit institutions, Vietnam had legal personality is headquartered in Vietnam, operating under license and operation and the related regulations of the law of Vietnam.

Article 7. Representative offices of foreign credit institutions is dependent of foreign credit institutions in Vietnam, operating under the law of Vietnam. Representative offices of foreign credit institutions not made business activities in Vietnam.

Article 8.

1. the monitoring bodies, competent inspectors of foreign, foreign banks have branches in Vietnam are inspected, check the operation of the foreign bank branch operating in Vietnam. Prior to the inspection, testing, monitoring bodies, foreign inspectors, foreign banks must be notified in writing to the Bank in terms of content, the start time and the end of the inspection, check.

2. After the end of the inspection, the inspection of foreign bank branches in Vietnam, monitoring bodies, competent inspectors of foreign, foreign banks must report to the State Bank of India inspected the results, check within 30 days of the end of the inspection , check.

Article 9.

1. the official transaction text of foreign credit organizations operating in Vietnam with Vietnam State agencies have to do with Vietnamese or by Vietnamese and foreign languages.

2. The text in the application for licensing of foreign credit institutions have to do with Vietnamese and foreign languages.

Chapter 2: Organization and OPERATION of article 10. Foreign credit institutions are allowed to operate in Vietnam when the conditions according to the provisions of article 106 of the law of credit institutions and the Central Bank must be granted a license to establish and operate, open license, open license branch offices (hereinafter referred to as the license).

Article 11.

1. Application for licensing of foreign credit organizations send to the State Bank to consider licensing was established according to the provisions of article 108 of the law on credit institutions.

2. Application for licensing of foreign credit organizations are established as 2 sets, a set by Vietnamese and a Foreign Ministry. The records in a foreign language was established and certified used abroad must be legalized consuls. The Vietnamese copies and translations from foreign languages out of Vietnamese to be certified Vietnam Agency confirmed.

Article 12. The time limit for the operation of foreign credit organizations in Vietnam are specified in the license, in particular the following: 1. foreign bank branch: not more than 20 years;

2. the joint venture banks, financial companies and venture finance company 100% foreign capital: not more than 30 years;

3. financial leasing companies, leasing companies 100% foreign-owned: no more than 50 years;

4. Representative offices of foreign credit institutions: not more than 5 years.

Article 13.

1. Credit institutions abroad like to renew operations in the Vietnam State Bank could be considered once again; each time the maximum extension by the deadline stated in the license.

2. Credit institutions abroad when there is the need to extend the operation to the applicant and the application for renewal before the end of the time limit stated in the operating licence: a minimum of 180 days for foreign credit institutions prescribed in clause 1, article 2 of this Decree and 30 days for representative offices of foreign credit institutions.

Article 14.

1. Representative offices of foreign credit institutions operating in Vietnam ended activity in the following circumstances: a) the expiry of the activity recorded in the license. The State Bank will inform in writing the termination of activity of representative office in Vietnam;

b) voluntary termination of activities. In this case, a minimum of 60 days before the expected termination of the activity of the representative offices of foreign credit institutions, must have the application send State Bank;

c) revoked the license when it came to one of the specified record at points a, b, e, paragraph 1, article 29 of the law on credit institutions and when the foreign credit institution bankrupt;

d) foreign credit organizations to be licensed under the provisions of clause 1, article 2 of this decree if there are representative offices opened on the same geographical areas (provinces, cities directly under the Central Government) to terminate the operation of representative offices of credit institutions.

2. Before the termination of operations, the Office of the representative of a foreign credit institution must fulfill all the obligations and procedures prescribed by law.


3. Representative offices of foreign credit institutions pay the license, registration certificate of operation for the Agency of Vietnam has granted the license, Registration Certificate at the latest on the day of termination of the operation.

Article 15. When foreign banks dissolved or went bankrupt, the branch operations in Vietnam have to cease operation. Before the termination of the operation, the foreign bank must fulfill all obligations and complete the necessary procedures in accordance with the law of Vietnam and under the guidance of the State Bank.

Article 16. Within a period of 12 months from the date of license, foreign bank branch, joint venture banks, non-bank credit organization joint venture and 100% foreign capital, representative offices of foreign credit institutions must operate.

Article 17. A minimum of 30 days prior to the start of operation, foreign credit institutions licensed under the provisions of clause 1, article 2 of this decree must complete the post report on 5 times in a row of Central and local institutions. The content was primarily recorded information in the license, certificate of business registration and opening operation.

Article 18.

1. foreign credit organizations operating in Vietnam being licensed must pay a fee in us dollars. Each license fees and renewals are specified as follows: a open license) representative offices of foreign credit institutions: USD 5,000 (five thousand u.s. dollars);

b) license to open a foreign bank branch license, the establishment and operation of joint venture Bank: USD 30,000 (thirty thousand u.s. dollars);

c) permits the establishment and activities of non-bank credit organization of venture and non-bank credit organization 100% foreign capital: US $10,000 (ten thousand United States dollars);

d) license to open a branch of venture Bank: USD 5,000 (five thousand u.s. dollars);

DD) license to open a branch of the non-bank credit organization: USD 5,000 (five thousand u.s. dollars);

e) open license representative offices of non-bank credit organization: USD 3,000 (three thousand dollars).

2. The procedure of licensing fees is done according to the instructions of the State Bank.

Article 19. Foreign credit organizations operating in Vietnam are imported direct service equipment page for activity under the provisions of the law.

Article 20.

1. Foreign banks open branches in the province, the city of centrally but not open branch of that branch. In the place was open, foreign bank branches are not a representative office. Foreign bank branches do not open the transaction under any form whatsoever beyond its branch office.

2. the joint venture Bank is open transaction at the municipal headquarters and branches in the provinces, the city of centrally prescribed in articles 32 and 33 of the credit institutions Act.

3. The non-bank credit organization be open branches, representative offices in the province, the city of centrally prescribed in articles 32 and 33 of the credit institutions Act.

4. Records procedure, please open the transaction, branches, representative offices referred to in paragraph 2 and paragraph 3 of this article is made according to the regulations of the State Bank.

Article 21. Management, administration, control and internal audit, inspections of foreign credit organizations operating in Vietnam are done according to the rules in section 3 and section 4, chapter II of the law on credit institutions.

Article 22.

1. Every foreign bank branch must have General Manager (the Director) to run your daily work.

2. the Director-General (Director) of the foreign bank branch by the authorized foreign bank's appointment, dismissal and to be Governor of the State Bank of medical standards.

Article 23.

1. The agency leadership of venture Bank, non-bank credit organization venture is the Board. The Board consists of the Chairman of the Board, the Vice Chairman of the Board and the members. The number of members of the Management Board of the credit organization venture depends on the amount of capital contributed by each party and foreign credit organizations in Vietnam. The case of each of the parties to the joint venture has a credit organization shall each have the right minimum 2 members join the Board. Several credit institutions join venture, each credit institution must have at least one Member to join the Board.

2. The term of the Board by the side of venture Bank, non-bank credit organization venture deals, but not more than 5 years.

3. The Director General or the Deputy General Manager of the joint venture banks, non-bank credit institutions must venture is representative of the Vietnam Side.

4. duties and powers of the Chairman of the Board, General Manager, Deputy General Manager of the first recorded in a Charter of venture Bank, non-bank credit organization.

Article 24.

1. The Director General of the non-bank credit organization 100% foreign capital is representative for credit institutions, responsible for all activities of the credit institution before the law of Vietnam.

2. duties and powers of the Director General in terms of non-bank credit organization 100% foreign capital.

Article 25.

1. Credit institutions abroad are placed representative offices in a number of provinces, the central cities of Vietnam and in every province, city are only allowed to place a representative office.

2. Each representative offices of foreign credit organizations in Vietnam must have a head of private office.

Article 26.

1. capital contribution rate of the foreign Party and the party in Vietnam joint venture Bank by the parties to the agreement and approval of State Bank when licensing. With regard to the implementation of joint venture Bank commercial banking, shares of foreign Parties do not exceed 50% of the Charter capital of a joint-venture Bank.

2. Shares of foreign Parties in the non-bank credit organization venture not less than 30% of the Charter capital.

3. In the case of capital have the donations, venture banking, non-banking credit organizations must present the venture with State Bank of legal papers to prove ownership and the value of artifacts. The value composition of capital contributions are determined on the basis of the market price at the time of capital contribution and must be held independent examiner certificate.

Article 27.

1. Vietnam-party and foreign Parties in the venture credit organization is entitled to transfer his shares but must comply with the provisions of article 26 of this Decree and must transfer priority for the parties in the venture credit organization. In the case of assignment to organizations outside business ventures, the transfer conditions are not favorable for the transfer within the credit institution. The transfer of the capital to be the parties in organizing the venture credit agreement.

2. non-bank credit organization 100% foreign capital have the right to transfer their capital but must give priority to the Organization of Vietnam.

3. The rate and conditions of the transfer of the Bank's venture capital, non-bank credit organization venture must be specified in the terms of credit institutions in accordance with the law. The case of capital portion exceeding assignment rules, the capital transfer is valid only after they are benchmark Bank of y.


4. In case of transfer of the profits arising from inherent transfer party must pay tax according to the provisions of the law of Vietnam.

Article 28. The parties to the joint venture banks, non-bank credit organization venture share the profits and bear the risk of the credit institution according to the national venture capital contribution of each party, unless the parties have agreed otherwise stipulated in the contract.

Article 29. Capital or capital of foreign credit institutions operating in Vietnam must be made in full on balance sheet accounting accounts of credit institutions.

Chapter 3: ACTIVE CONTENT to article 30. Foreign bank branches can be made some or all of the following services: 1. Receive money sent from the term and non-term according to the regulations of the Bank; not receive savings of any kind;

2. release the certificate of deposit, valuable papers;

3. Loans of credit organizations in and outside the country;

4. short term loans of State banks;

5. short term loans, medium-term and long-term;

6. Discount, discount, pledge trade votes, valuable papers;

7. bank guarantee;

8. Trading Forex;

9. Implementation of the payment services and treasury services;

10. open deposit accounts in credit institutions abroad as stipulated by the State Bank;

11. credit card paying agents;

12. Implementation of the household services, households;

13. Perform trust services and asset management;

14. Perform the financial consultancy services, currency.

Article 31. Venture Bank may be performing some or all of the following services: 1. Receive money sent from the term and non-term;

2. release the certificate of deposit, valuable papers;

3. Loans of credit organizations in and outside the country;

4. short term loans of State banks;

5. short term loans, medium-term and long-term;

6. Discount, discount, pledge trade votes, valuable papers;

7. bank guarantee;

8. Trading Forex;

9. Implementation of the payment services and treasury services;

10. open deposit accounts in credit institutions abroad as stipulated by the State Bank;

11. credit card paying agents;

12. Perform the service collects and households;

13. Perform trust services and asset management;

14. Perform the financial consultancy services, currency.

Article 32. Financial leasing companies, leasing companies 100% foreign capital can be made some or all of the following services: 1. term deposits Received from a year or more, are not allowed to receive non-term deposits, savings deposits;

2. Bonds, valuable papers;

3. Loans of credit organizations in and outside the country;

4. Financial Leasing;

5. bank guarantee;

6. Perform consulting services and services related to leasing activities;

7. Perform trust services and asset management.

Article 33. Venture finance company, financial company 100% foreign capital can be made some or all of the following services: 1. term deposits Received from a year or more, are not allowed to receive non-term deposits, savings deposits;

2. Bonds, valuable papers from term of one year or more;

3. Loans of credit organizations in and outside the country;

4. short-term loans, medium term, long term;

5. Discount, discount, pledge trade votes and the valuable papers;

6. bank guarantee;

7. Foreign Exchange trading;

8. Perform trust services and asset management;

9. Perform the financial consultancy services, currency.

Article 34. Representative offices of foreign credit institutions may be made in whole or in part the following activities according to content recorded in the license issued by the State Bank: 1. Make contact Office functions;

2. Market research;

3. Promotion of investment projects on construction of foreign credit organizations in Vietnam;

4. Promote and monitor the implementation of the contract, the agreement signed between credit institutions abroad with credit institutions in Vietnam and the Vietnam business, projects by foreign credit institutions funded in Vietnam;

5. Other activities consistent with the law of Vietnam when the State Bank allowed.

Article 35. When there is demand and be allowed State Bank, foreign bank branch, joint venture banks, non-bank credit institutions are allowed to perform other services consistent with the relevant law of Vietnam.

Article 36.

1. In the license issued to a foreign bank branch, joint venture banks, non-bank credit institutions, the Bank specifies the services to be allowed to perform in Vietnam match the type and scale of the credit institution is licensed.

2. All adjustments, additional permits issued to foreign credit organizations operating in the State Bank of Vietnam made.

Article 37. During the operation, foreign credit organizations operating in Vietnam to comply with regulations regarding the restrictions to ensure the safe operation of the credit institution are specified in section 5, chapter III of the law on credit institutions.

Article 38.

1. foreign bank branch, joint venture banks, non-bank credit organizations operating in Vietnam is obliged to follow the system of Accounting Accounting accounts Bank by State regulation and the use of vouchers, accounting reports, financial reports according to the regulations of the State Bank.

2. The currency used for accounting is Vietnam. The case of foreign credit organizations operating in Vietnam have accounting needs in foreign currency to the reporting for the headquarters of the foreign credit institution must then be approved by the State Bank.

Chapter 4: the TERMS of the IMPLEMENTATION of Article 39. The Decree has effect after 15 days from the date of signing and replace the previous text contrary to this Decree.

Article 40. Foreign bank branches, branch of the foreign bank, banks, non-bank credit organizations and representative offices of foreign credit institutions in Vietnam have to adjust organization and activities consistent with this Decree and the regulations of the State Bank.

Article 41. The Governor of the State Bank is responsible for guiding the implementation of this Decree.