Vietnam: Requirements for becoming a member of the People's Credit Fund from July 1, 2024

Requirements for becoming a member of the People's Credit Fund from July 1, 2024 (Image from the Internet)

On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 29/2024/TT-NHNN regulating the people's credit fund.

Conditions for becoming a member of the people's credit fund from July 1, 2024

Specifically, according to Article 8 of Circular 29/2024/TT-NHNN of the State Bank of Vietnam, the conditions for becoming a member of the people's credit fund from July 1, 2024, are as follows:

(1) For individuals:

- Vietnamese citizens aged 18 years or older, with full civil act capacity, registered for permanent or temporary residence in the area where the people's credit fund operates. In case of temporary residence registration, individuals must be engaged in production or business activities or be workers in the area where the people's credit fund operates and must provide documents to prove this;

- Officials and public employees working at organizations and agencies with headquarters located in the area where the people's credit fund operates;

- Not being a person undergoing criminal prosecution, serving a prison sentence; serving administrative measures in compulsory rehabilitation centers, compulsory education centers; being banned by the court from holding certain positions, practicing certain professions, or performing certain jobs; having been convicted of serious crimes but not yet expunged.

(2) For households:

- Being households with members residing permanently in the area where the people's credit fund operates; members of the household must have common assets to serve the production and business of the household;

- Household members must appoint one household member to act as the representative to exercise the rights and obligations of the member of the people's credit fund. The representative of the household must be authorized in writing by the household members according to legal regulations and must meet the conditions specified in (1).

(3) For legal entities:

- Being a legal entity (excluding social funds, charity funds) operating legally and having its headquarters located in the area where the people's credit fund operates;

- The representative of the legal entity participating as a member of the people's credit fund shall be the legal representative of the legal entity or an individual authorized by the legal representative of the legal entity to participate.

Note:

- Individuals, households, and legal entities must submit a voluntary application to join the people's credit fund according to the forms in Appendix 01, Appendix 02, and Appendix 03 issued together with Circular 29/2024/TT-NHNN, agreeing to the Charter and contributing the required capital as specified in Article 10 of Circular 29/2024/TT-NHNN.

- Each subject specified in (1), (2), and (3) is only allowed to join as a member of one (01) people's credit fund.

Cases of termination of membership in the people's credit fund from July 1, 2024

A member of the people's credit fund shall terminate membership in the following cases:

(1) Automatic loss of membership status:

(i) The member who is an individual dies or is declared missing;

(ii) The member who is a legal entity ceases to be a legal entity;

(iii) The member no longer meets the conditions to be a member under the provisions of Article 8 of this Circular, except for the case specified in (i) of (3);

(iv) The member has transferred all capital contributions to others according to the law and the Charter of the people's credit fund;

(2) Voluntary: The member voluntarily leaves and is approved by the Board of Directors to leave the membership of the people's credit fund;

(3) Expulsion: The member is expelled from the people's credit fund by the General Meeting of Members for:

(i) Failing to ensure sufficient capital contributions as specified in Clause 1, Article 10 of Circular 29/2024/TT-NHNN

(ii) Committing acts of falsification or fraud in membership documents;

(iii) Other cases as specified in the Charter of the people's credit fund.

(Clause 1, Article 9 of Circular 29/2024/TT-NHNN)

More details can be found in Circular 29/2024/TT-NHNN of the State Bank of Vietnam, effective from July 1, 2024.

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