Application for approval for establishment of a branch of a non-bank credit institution in Vietnam

According to Circular No. 53/2018/TT-NHNN of the State Bank of Vietnam (SBV), an application for approval for establishment of a branch, representative office or administrative unit shall include:

- The application for the SBV’s approval for establishment of a branch/ representative office/ administrative unit made by the non-bank credit institution by using the form provided in the Appendix enclosed herewith.

- The resolution on approval for the establishment of a branch/ representative office/ administrative unit made by the Board of Directors, or the Board of Members of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter.

- The scheme for branch establishment, which includes, inter alia, the following contents:

+ Full name and abbreviated name in Vietnamese language, branch’s address and operations;

+ Reasons for establishing the branch and selected location of the branch;

+ Organizational structure: Organizational structure of the branch, expected holders of key positions (including Director, Deputy Director and heads of professional divisions);

+ The feasibility study report which includes analysis of business environment, target market, business opportunities and plans for market domination;

+ The business plan for the first three years, which includes, inter alia, the following contents: Planned balance sheet; income statement; grounds for formulating the business plan and explanations about the capacity to implement the business plan in each year.

- The scheme for establishment of a representative office/ administrative unit, which includes, inter alia, the following contents:

+ Full name in Vietnamese language and in foreign language (if any); abbreviated name in Vietnamese language and foreign language (if any); address and operations;

+ Reasons and necessity of establishing the representative office/ administrative unit;

+ Expected holders of key positions (including Director, Deputy Director, heads of professional divisions, head of the representative office or administrative unit);

+ The operation plan for the first three years.

View details at Circular No. 53/2018/TT-NHNN of the State Bank of Vietnam, effective from March 01, 2019.

-Thao Uyen-

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