Legal form of non-bank credit institutions in Vietnam from December 24, 2024

Legal form of non-bank credit institutions in Vietnam from December 24, 2024

The legal form of non-bank credit institutions in Vietnam is stipulated as follows:

(1) Non-bank credit institutions in Vietnam shall be organized under the legal form as prescribed in Clauses 3, 4, Article 6 of the Law on Credit Institutions.

(2) Non-bank credit institutions shall be organized under the legal form of a limited liability company with two or more members contributed by a Vietnamese commercial bank and Vietnamese enterprises (in which a Vietnamese commercial bank holds at least 30% of the total charter capital of the non-bank credit institution) or by Vietnamese commercial banks to ensure compliance with Clause 1, Article 77 of the Law on Credit Institutions.

(3) Joint venture non-bank credit institutions shall be organized in the form of a limited liability company with two or more members, with contributions from the Vietnamese side (comprising one or more Vietnamese commercial banks and Vietnamese enterprises) and the foreign side (comprising one or more foreign credit institutions) on the basis of a joint venture contract, ensuring compliance with Clause 1, Article 77 of the Law on Credit Institutions.

(4) 100% foreign-owned non-bank credit institutions shall be organized in the form of a one-member limited liability company owned by a foreign credit institution or a limited liability company with two or more members owned by foreign credit institutions, ensuring compliance with Clause 1, Article 77 of the Law on Credit Institutions.

The operating period of a non-bank credit institution is recorded in the License, with a maximum duration not exceeding 50 years.

The State Bank shall specifically stipulate the contents of banking activities and other business activities in the License issued to each non-bank credit institution according to the License template corresponding with each type of non-bank credit institution specified in Annexes No. 01, 02, 03, 04 issued together with Circular 57/2024/TT-NHNN.

More details can be found in Circular 57/2024/TT-NHNN effective from December 24, 2024.

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