Legal basis

• Clause 9 Article 4 of the Law on the State Bank of Vietnam No. 46/2010/QH12;
• Articles 18, 20, 21 and 50 of the Law on Credit Institutions No. 47/2010/QH12;
• Decree 141/2006/ND-CP;
• Decree No. 10/2011/ND-CP;
• Clause 27, Article 1 of the Ordinance amending and supplementing the Ordinance on Foreign Exchange No. 06/2013/UBTVQH13;

Conditions for establishing foreign bank branches in Vietnam

First, The minimum allocated capital is equal to the legal capital of 15 million USD;

Second, Managers and operators fully meet the following criteria and conditions:

– The General Director (Director) must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Having professional ethics;

+ Having a university degree or higher in one of the fields of economics, business administration, or law;

+ Having at least 5 years working as an executive of a credit institution or at least 5 years working as an administrator

General Director (Director), Deputy General Director (Deputy Director) of an enterprise whose equity capital is at least equal to the legal capital for each type of credit institution as prescribed by law or has at least 10 years working directly in the field of finance, banking, accounting or auditing;

+ Residing in Vietnam during the term of office.

+ The General Director (Director) of a foreign bank’s branch may not participate in the administration and administration of a credit institution or other economic organization and cannot concurrently act as the head of the bank’s representative office in Vietnam. Foreign goods.

– Deputy General Director (Deputy Director), Chief Accountant, Branch Director, Director of Subsidiaries and equivalent titles must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 2, Article 33 of the Law on Credit Institutions; for the Deputy General Director (Deputy Director) other than those specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Having a university degree or higher in one of the fields of economics, business administration, law or the professional field that he or she will undertake; or have a university degree or higher outside of the above-mentioned fields and fields and have at least 03 years of working directly in the banking, financial or professional fields that they will be in charge of;

+ Residing in Vietnam during the term of office.

Third, Having an establishment scheme and a feasible business plan that does not affect the safety and stability of the credit institution system; does not create a monopoly or restrict competition or unfair competition in the credit institution system.

Fourth, The foreign credit institution is permitted to conduct banking activities in accordance with the laws of the country where the foreign credit institution’s head office is located;

Fifth, The activity expected to be performed in Vietnam must be the activity that the foreign credit institution is currently permitted to conduct in the country where the foreign credit institution’s head office is located;

Sixth, Foreign credit institutions must have healthy operations, meet the conditions on total assets, financial situation, safety ratios as prescribed by the State Bank;

Seventh, The foreign competent authority has signed an agreement with the State Bank on inspection and supervision of banking activities, exchanging information on banking safety supervision and has made a written commitment to consolidated supervision according to the provisions of law. international practices for operations of foreign credit institutions.

Finally, The foreign bank must have a written guarantee to take responsibility for all obligations and commitments of the foreign bank branch in Vietnam; ensure to maintain the real value of the allocated capital not lower than the legal capital level and comply with the provisions on safety assurance of the Law on Credit Institutions.

Here is our advice on this matter. If you need advice, more detailed answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35 .53.53 or call toll free legal consultation hotline 1900.6575 or send service request via email: lienheluathongbang@gmail.com

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