Bank guarantee application dossier in Vietnam from April 1, 2025

Bank guarantee application dossier in Vietnam from April 1, 2025​ (Image from the internet)

On December 31, 2024, the Governor of the State Bank of Vietnam issued Circular 61/2024/TT-NHNN regulating bank guarantees.

Bank guarantee application dossier in Vietnam from April 1, 2025

According to Article 14 of Circular 61/2024/TT-NHNN, the bank guarantee application dossier includes the following main documents:

- Guarantee application;

- Customer documents; including information on the individuals related to the customer as prescribed by the Law on Credit Institutions if the customer's total credit balance at a credit institution or foreign bank branch (including the amount requested for the guarantee) is equal to or greater than 0.1% of the capital of the credit institution or foreign bank branch at the end of the most recent working day when the customer requested the guarantee, except if the customer is a foreign credit institution. In case the credit institution or foreign bank branch has a negative capital, the rate above is applied to charter capital or allocated capital (for foreign bank branches). Information on related persons includes:

(i) Information on related individuals, including: full name, personal identification number for Vietnamese citizens; nationality, passport number, date of issue, place of issue for foreigners; relationship with the customer;

(ii) Information on related organizations, including: name, enterprise code, address of head office, business registration certificate number or equivalent legal documents, legal representative, relationship with the customer.

- Documents concerning the obligation guaranteed;

- Documents concerning security measures (if any);

- Documents concerning other related parties (if any).

Based on the actual guarantee operations of the credit institution or foreign bank branch and the specific characteristics of each customer group, each method of guarantee activity (by traditional methods or electronic means), the credit institution or foreign bank branch will provide specific guidance on the required dossier to be sent to the credit institution or foreign bank branch for appraisal and consideration for guarantee issuance.

Regulations on bank guarantee issuance agreement in Vietnam from April 1, 2025

Based on Article 15 of Circular 61/2024/TT-NHNN regulating the bank guarantee issuance agreement:

- To issue a guarantee for a customer, the credit institution, foreign bank branch, and customer must create a guarantee issuance agreement. In case the issuance of guarantee is based on counter-guarantee or guarantee confirmation, the guarantor is not required to create a guarantee issuance agreement with the counter-guarantor or guarantee confirmer.

- The guarantee issuance agreement must include the following contents:

+ Applicable law. If not specifically prescribed, it is understood that the parties agree to apply Vietnamese law;

+ Information about the parties in the guarantee relationship;

+ Obligation guaranteed;

+ Guarantee amount, guarantee currency;

+ Form of issuance of guarantee commitment;

+ Conditions for performing the guarantee obligation;

+ Rights and obligations of the parties;

+ Guarantee fee;

+ Agreement on compulsory substitution for debt repayment, interest applicable to the substitute amount, and obligation to repay the debt when performing the guarantee obligation;

+ Number, signing date, validity of the guarantee issuance agreement;

+ Dispute resolution;

+ Other contents not contrary to the provisions of law.

- Amendments, supplements, or cancellation of the contents of the guarantee issuance agreement are based on mutual agreement and decision by the parties involved, ensuring compliance with legal regulations.

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