Is it permissible to register under the agreement of property lien at the request of the secured party in Vietnam?

Is it permissible to register under the agreement of property lien at the request of the secured party in Vietnam?

Pursuant to Article 4 of the Decree 99/2022/NĐ-CP stipulating security interests subject to registration in Vietnam as follows:

Security interests subject to registration

1. The following security interests are subject to registration:

a) Registration of mortgage of property, pledge of property, title retention as prescribed in the Civil Code, and relevant laws;

b) Registration under the agreement between the grantor and the secured party or at the request of the secured party, except for property lien;

c) Registration of notice of realization of collateral in case an asset is used to secure the performance of many obligations but many parties jointly receive the security or in cases where the grantor and the secured party have reached an agreement;

d) Registration of changes to registered information (hereinafter referred to as change registration); deregistration of registered information (hereinafter referred to as deregistration) for the case specified at Points a, b and c of this Clause.

2. The registration is done at the competent registry specified in Article 10 of this Decree.

As regulation above, it is permissible to register under the agreement of property lien at the request of the secured party in Vietnam.

In which cases shall registration of security interest in Vietnam be refused?

Pursuant to Clause 1 Article 15 of the Decree 99/2022/NĐ-CP, the registry may refuse to register a security interest in any of the following cases:

+ The security interest falls beyond its registration competence;

+ The registration application is invalid as prescribed in Clause 5, Article 3 of this Decree;

+ The property is ineligible to be used to secure the performance of obligations as prescribed by the Land Law, Housing Law and other relevant laws. If the property is in dispute, the registry may only refuse the registration when a document accepting or justifying the acceptance of settlement of dispute issued by the court or other dispute settlement authority;

+ Information in the registration application is inconsistent with information kept at the registry, except for the cases specified in Clause 8 Article 25, Clause 1 and Clause 3 Article 36 and Article 37 of this Decree;

+ The information described on the application form for registration for the property specified in Clause 3, Article 5 of this Decree is inconsistent with the information on the Certificate, unless the information described on the application form for registration is consistent with the information being kept at the registration office due to the establishment of a new cadastral map to replace the documents and measurement data used to issue the Certificate but the land user, owner of property on land that has not yet been granted a replacement certificate according to the new cadastral map;

+ Information of the grantor or the secured party in the case of registration through the online registration system or the information of the representative in the case of registration specified in Clause 2, Article 24 of this Decree does not match the information of the online registration account used;

+ The request for registration of change or deregistration of information on security interests, or notice of collateral realization is not kept at the registry;

+ The registry detects by itself that documents, signatures and seals in the registration application are forged as their ones or receives information with certification from a competent authority that documents, signatures and seals in registration application are forged;

+ Before the time of recording or updating the registered information in the Register or in the Database, the registry receives a written notice from the civil judgment enforcement agency or the enforcer stating the distraint of the collateral or request the suspension or use of the registration of the property of which the grantor is the judgment debtor in accordance with the law on civil judgment enforcement; receive a written request from a presiding authority or officer or from another competent agency or another competent person requesting not to register in accordance with regulations of law.

The provisions at this point do not apply in cases where the National Assembly's Resolution on handling bad debts of credit institutions or relevant laws stipulate otherwise;

+ The registration applicant does not pay the registration fee, unless otherwise provided by the law on fees and charges or other relevant laws.

Which authorities shall have power to register for security interest in Vietnam?

Pursuant to Article 10 of the Decree 99/2022/NĐ-CP stipulating registry, information provider as follows:

- Land registry affiliated to Services of Natural Resources and Environment, branches of land registry (hereinafter referred to as land registry) shall register and provide information on security interest in land use right and property on land as prescribed in Article 25 of this Decree.

- The Civil Aviation Administration of Vietnam affiliated to the Transport Ministry shall register and provide information on security interest in aircrafts as prescribed in Article 38 of this Decree.

- Vietnam Maritime Administration or Maritime Sub-Administration, Maritime Administration of Vietnam Maritime Administration affiliated to the Ministry of Transport (hereinafter referred to as Vietnam sea-going ship registry) shall register and provide information on security interest in seagoing ships as prescribed in Article 41 of this Decree.

- VSDC shall register and provide information on security interests in form of centrally registered securities in compliance with law on securities.

- Transaction and asset registration centers of the National Registration Agency for Secured Transactions affiliated to the Justice Ministry (hereinafter referred to as asset registration center) shall register and provide information about security interest in movable property other than aircraft, sea-going ships, centrally registered securities (hereinafter referred to as movable property) and other cases as prescribed in Article 44 of this Decree.

- The determination of the authority competent to register and provide information on security interests in the right to use the sea area and property on the sea area shall comply with the provisions of the law on exploitation and utilization of marine resources.

- The determination of the authority competent to provide information in case organizations and individuals look up information themselves through database user codes and in information provision activities between competent agencies, competent persons with the registry shall comply with the provisions of Clause 2, Article 50 and Article 52 of this Decree.

Best regards!