Vietnam: Collateral is required for the loan of VND 100 million or more from November 08, 2019

16:29, 18/11/2019

Recently, the Government of Vietnam has issued the Decree No. 74/2019/NĐ-CP on amendments to the Decree No. 61/2015/NĐ-CP prescribing employment creation policies and national employment fund.

tài sản bảo đảm vay tiền, Nghị định 74/2019/NĐ-CP

According to Clause 5 Article 1 of the Decree No. 74/2019/NĐ-CP of the Vietnam’s Government, collateral is stipulated as follows:

Article 27. Collateral

If the loan amount is VND 100 million or more, the business entity is required to provide the collateral for such loan in accordance with regulations of the law on secured transactions.

In comparison with provision of Article 27 of the Decree No. 61/2015/NĐ-CP, regarding the loans of VND 50 million or greater from the National Employment Fund, the business entity must put up their property as collateral as prescribed by law. Thus, the Decree No. 74/2019/NĐ-CP amending Decree No. 61/2015/NĐ-CP has increased the loan amount for production and business establishments by VND 50 million to facilitate borrowing capital from the National Employment Fund. Besides, according to Clause 2 Article 1 of the Decree No. 74/2019/NĐ-CP, the maximum loan amount granted to each eligible employee is VND 100 million (he maximum loan amount granted to each eligible employee is VND 50 million in accordance with Decree No. 61/2015/NĐ-CP).

View more details at the Decree No. 74/2019/NĐ-CP of the Vietnam’s Government, effective from November 08, 2019.

Phuong Thanh

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