Vietnam: Are notarized and authenticated security contracts required to have seals of guarantors and secured parties?

Main Content

• Are notarized and authenticated security contracts in Vietnam required to have seals of guarantors and secured parties?
• What is the time limit for processing applications for registering security interests for security contracts in Vietnam?
• What are the regulations on returning the results of registering security interests in Vietnam for security contracts in Vietnam?

Are notarized and authenticated security contracts in Vietnam required to have seals of guarantors and secured parties?

Pursuant to Point a, Clause 1, Article 12 of Decree 99/2022/ND-CP stipulating as follows:

Article 12. Signatures, seals in registration

1. The application form for registration must bear the signature of the authorized person (hereinafter referred to as the signature), the seal (if any) of the grantor and the secured party, except for the following cases:

a) In case of the security contract or amendments thereof that are notarized or authenticated, only the signature and seal (if any) of the grantor or the secured party are required;

According to the above provisions, the application form for security interest registration must bear the signature of the authorized person. In case the guarantor and the secured party are organizations, their seals are required.

However, notarized and authenticated security contracts are not required to have seals of organizations as guarantors and secured parties.

What is the time limit for processing applications for registering security interests for security contracts in Vietnam?

Pursuant to Article 16 of Decree 99/2022/ND-CP stipulating as follows:

Time limit for processing registration application

1. The registry is responsible for processing the registration application within the working day on which it receives the valid application; if the application is received after 15:00 of the same day, the registration can be done in the next working day. If the registry has a legitimate reason to extend the processing time for the application, the time limit for processing the application shall not exceed 03 working days from the date of receipt of a valid application. In this case, the registry must send a notice with explanation to the registration applicant in paper or electronic document (hereinafter referred to as electronic version) or in another convenient form to the. registration applicant and in accordance with the conditions of the registry as soon as there is a good reason.

2. In case the registration application of land use rights and property on land is filed through the Department of reception and result return of administrative procedures, the provincial-level public administration service center (hereinafter referred to as the single window division), People's Committee of commune, ward, township (hereinafter referred to as commune), the time limit for processing the application shall commence from the time when the land registry receives the valid application.

3. Time not included in the time limit specified in Clause 1 of this Article includes:

a) Time of occurrence of natural disaster, epidemic, fire, online registration system failure, power grid failure, internet failure or other force majeure events as written or decided by the competent authority that prevent the registry from carrying out the registration according to the procedures and time limit specified in this Decree. In this case, the registry must immediately send a notice within the working day of the event or within the same working day that it receives the document or decision of the competent authority in the form of posting it at the head office of the registry and post it on the website of the regulatory body, the registry (if any) or another convenient form to the registration applicant and suitable to the conditions of the registry;

b) The time period for the registry to carry out the procedures specified in Clause 2, Article 35 of this Decree.

Accordingly, time of occurrence of natural disaster, epidemic, fire, online registration system failure, power grid failure, internet failure or other force majeure events will not be included in the time limit for processing applications for registering security interests in Vietnam for security contracts.

What are the regulations on returning the results of registering security interests in Vietnam for security contracts in Vietnam?

Pursuant to Article 17 of Decree 99/2022/ND-CP stipulating as follows:

Return of registration results

1. In case of registration at the Center for Registration of Transactions and Assets, the registration results shall be returned in electronic or paper copies at the request of the registration applicant. The grant of copies of registration results shall comply with Article 22 of this Decree.

The return of registration results, paper copies of registration results specified in this Clause and Article 22 of this Decree can be done in person at the registry, via postal service or by other means agreed upon by the registry and the registration applicant in accordance with law.

2. In the case not specified in Clause 1 of this Article, the registry shall return the registration result in one of the following ways:

a) In person at the registry.

If the application was filed at the single-window division or the People’s Committee of commune, the applicant for registration shall receive results at these authorities;

b) Via postal service;

c) By electronic means, if so provided for by law; other methods agreed upon by the registry and the registration applicant in accordance with law.

3. If the registration application contains the master copy or the original of Certificate, the registry shall return this Certificate to the registration applicant together with the registration result.

4. In case the registration results are returned electronically, the electronic results have the same legal validity as the paper results.

Thus, if the registration is conducted at the Center for Registration of Transactions and Assets, the registration results shall be returned in electronic or paper copies at the request of the applicant.

If the registration is not conducted at the Center for Registration of Transactions and Assets, the registration results shall be directly returned at the registration authorities or via postal service or through the Internet.

Decree 99/2022/ND-CP will take effect from January 15, 2023.