Vietnam: Guidance on methods of sale of receivables from financial leasing contracts

16:07, 11/01/2018

On December 29, 2017, the State Bank of Vietnam issued Circular No. 20/2017/TT-NHNN on sale of receivables from financial leasing contracts.

According to Circular No. 20/2017/TT-NHNN of the State Bank of Vietnam, methods of sale of receivables from financial leasing contracts are as follows:

The seller may select methods of sale of receivables such as agreement through direct negotiation between the seller and the buyer, through a broker or by auction of assets in accordance with the law on asset auction.

Also according to Circular No. 20/2017/TT-NHNN, financial companies and financial leasing companies shall establish receivables sale councils in accordance with their charters and internal regulations on sale of receivables. The composition, tasks and powers of such councils shall be stipulated by financial companies and financial leasing companies.

Provisions on selling price of the receivables can be found in Circular No. 20/2017/TT-NHNN of the State Bank of Vietnam, which takes effect from February 12, 2018.

- Thanh Lam -

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