BANKING AND FINANCE
¤ Circular No. 14/2017/TT-NHNN regarding calculation of interest in connection with deposits and credit extension
Effective date: 1 January 2018
For the purpose of calculation and conversion of interests,
(1) each year has 365 days;
(2) each month has 30 days;
(3) each week has 7 days; and
(4) each day has 24 hours.
Loan documents signed between the credit institutions and their customers must provide for,among other terms and conditions, interest rates, the method for calculation of interest and/or adjustment of interest rates.
¤ Circular No. 10/2017/TT-NHNN regarding management of foreign currency exchange in connection with casino business
Effective date: 15 October 2017
The Circular applies to casino companies, customers and banks/foreign bank branches licensed to do foreign currency exchange. The Circular provides for, among other things, currency conversion, currency transactions, license to do foreign currency transactions and specialized bank accounts. The Circular is also attached with application forms for the licensing procedures.
¤ Circular No. 11/2017/TT-NHNN amending Circular No. 15/2014/TT-NHNN regarding management of foreign currency exchange in connection with prize-winning electronic games for foreigners
Effective date: 15 October 2017
This Circular takes into account issues in connection with foreign currency transactions and issuance of license to do foreign currency transactions. The Circular is also attached with application forms for the licensing procedures.
¤ Decree No. 93/2017/ND-CP regarding financial regimes of credit institutions and foreign bank branch and control of State owned capital invested in credit institutions
Effective date: 25 September 2017
Credit institutions and foreign bank branches are required to be responsible for their financial status and operations and to implement its commitments pursuant to the laws.
Credit institutions and foreign bank branches must obey regulations on
- capital expenditure; capital acquisition/contribution; capital safety; asset re-evaluation; asset depreciation; lease; disposal of assets;
- income and costs; currency used in accounting;
- profit allocation and funding; and
- financial plans, reporting and audit.
The Decree also sets out responsibilities of Boards of Management, Members’ Council, General Directors/Directors and the State representatives in connection to the above compliance.
¤ Circular No. 02/2017/TT-NHNN regarding factoring services carried out by credit institutions and foreign bank branches
Effective date: 30 September 2017
The Circular provides for legal provisions on factoring services such as:
- internal regulations on factoring issued by credit institutions and foreign bank branches and submitted to the State Bank of Vietnam;
- circumstances under which credit institutions and foreign bank branches are not allowed to supply factoring services;
- methods of factoring;
- currency, interest and debt payment;
- factoring contracts; and
- penalties and compensation.
¤ Decision 2739/QD-NHNN of the State Bank of Vietnam dated 31 December 2015 on announcement of central exchange rate between VND and USD and cross rates between VND and other foreign currencies
- The State Bank of Vietnam has tightened its management on foreign exchange by announcing central exchange rate between VND and USD every day and cross rates between VND and other foreign currencies every Thursday on its official website.
- The central exchange rate shall be the basis for the credit institutions and foreign bank branch in Vietnam to determine their VND/USD exchange rate. Current exchange rate margin is +/-3. The cross rates shall be used to determine taxable prices (in case of import-export).