Vietnam’s new regulations on registration of security interests

According to Decree No. 102/2017/NĐ-CP of Vietnam’s Government, there are 04 security interests subject to registration, including:

1. Mortgage of land use rights;

2. Mortgage of property on land whose ownership has been stated in the certificate of rights to use land, ownership of house and property on land (hereinafter referred to as land use right certificate);

Branches of land registry and land registry affiliated to Services of Natural Resources and Environment shall register and provide information on security interest in land use rights and property on land.

3. Pledge or mortgage of aircrafts;

4. Mortgage of seagoing ships.

Concurrently, Decree No. 102/2017/NĐ-CP also specifies 03 security interests subject to registration upon requests, including:

One, mortgage of other personal/movable property;

Two, mortgage of off-the-plan property on land;

Three, title retention in case of purchase of property on land, off-the-plan property on land; purchase of aircrafts, seagoing ships; or purchase of other personal/movable property with title retention.

Transaction and asset registration centers of the National Registration Agency for Secured Transactions affiliated to the Justice Ministry shall register and provide information about security interest in personal/movable property and other properties not falling within the registering competence of authorities defined above.

An application for security interest registration shall be filed by any of the following methods: via the online registration system; in person; by post; and via emails in a case where the applicant for registration has been granted a user code for the security interest database.

The authority competent to register or provide information on security interests shall process an application for registration and provision of information within the working day in case of satisfactory application; if the application is received after 15 hours, the registration and provision of information shall be completed within the next working day; with a possible extension up to 03 working days if necessary.

Decree No. 102/2017/NĐ-CP also specifies publishing information on security interests. Accordingly, within 5 working days from the date on which the security interest in construction or housing project is registered, the land registry shall send information to the Department of Natural Resources and Environment in order to publish it on the website. The information to be published includes: project’s name and address, grantor, secured party, collateral, registration time.

Source: Finance Magazine

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