Application for bank guarantee in Vietnam from April 1, 2025

Application for bank guarantee in Vietnam from April 1, 2025​ (Image from Internet)

1. Application for bank guarantee in Vietnam from April 1, 2025

According to Article 14 of Circular 61/2024/TT-NHNN, the regulation on application for bank guarantee in Vietnam is as follows:

- The guarantee application dossier includes the following principal documents:

+ Application for guarantee;

+ Customer documents, which include information about individuals related to the customer as stipulated in the Law on Credit Institutions 2024 if the total credit granted to that customer at the credit institution, or foreign bank branch (including the amount requested for guarantee) is equal to or exceeds 0.1% of the charter capital of the credit institution, or foreign bank branch at the end of the nearest working day to when the customer requests the guarantee, except where the customer is a foreign credit institution. If the credit institution, or foreign bank branch has negative charter capital, the above percentage is applied on charter capital or assigned capital (for foreign bank branches). Information about 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,  business  registration  number,  address  of  the  main  office  of  the  enterprise,  enterprise  registration  certificate  number  or  equivalent  legal  documents,  legal  representative,  relationship  with  the  customer.

+ Documents on guaranteed obligations;

+ Documents on security measures (if any);

+ Documents on other related parties (if any).

- Based on the actual guarantee operation of the credit institution, foreign bank branch, and specific characteristics of each customer group and method of guarantee activities (via traditional methods or electronic means), the credit institution, foreign bank branch guides specifically on the requirement of dossiers to be sent to the credit institution, foreign bank branch for appraisal and consideration for guarantee issuance.

2. Provisions on the bank guarantee agreement in Vietnam

According to Article 15 of Circular 61/2024/TT-NHNN, the regulations on the bank guarantee agreement are as follows:

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

- The guarantee agreement must contain the following contents:

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

+ Information about parties in the guarantee relationship;

+ Obligations guaranteed;

+ Guarantee amount, currency of guarantee;

+ Form of issuing guarantee commitment;

+ Conditions for fulfilling the guarantee obligation;

+ Rights and obligations of the parties;

+ Guarantee fees;

+ Agreement on compulsory debt assumption, applicable interest rate for the substituting payment, and reimbursement obligations for performing the guarantee obligation;

+ Number, signing date, effective duration of the guarantee agreement;

+ Resolution of arising disputes;

+ Other contents not contrary to the legal regulations.

- The amendment, supplementation, or cancellation of the content of the guarantee agreement is determined by the agreement and decision of the involved parties, ensuring compliance with the legal regulations.

Circular 61/2024/TT-NHNN takes effect starting from April 1, 2025, replacing Circular 11/2022/TT-NHNN and Circular 49/2024/TT-NHNN.

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