Regulations on the Operations of Debt Management Companies
Circular No. 31/2025/TT-NHNN issued by the State Bank of Vietnam, effective from December 1, 2025, clearly defines the scope of operations for subsidiaries and affiliates of credit institutions in the field of debt management and asset exploitation.
According to the new regulations, debt management companies are only permitted to perform seven groups of activities, including: debt management, authorized debt resolution, management and exploitation of collateral, debt trading, and collateral valuation.
Notably, the Circular tightens conditions for debt purchasing by requiring the originating bank to have a bad debt (NPL) ratio of under 3% at the most recent classification period. Regarding the handling of collateral, debt management companies are prohibited from engaging in real estate business; the total purchase price of assets must not exceed their charter capital; and they must sell or transfer the real estate within 5 years from the date of purchase.
For details of Circular No. 31/2025/TT-NHNN, click here.
Conditions for Seizing Collateral of Non-Performing Loans
Decree No. 304/2025/ND-CP of the Government, effective from December 1, 2025, stipulates the conditions under which collateral for non-performing loans may be seized, applicable to credit institutions, foreign bank branches, and debt trading and resolution organizations.
The Decree specifies two special cases: when seizing a sole place of residence, the secured party must deduct a sum of money for the securing party equivalent to 12 months of the minimum wage. For essential or sole labor tools not formed from the loan capital, the deduction level is 6 months of the minimum wage.
This regulation aims to balance the rights of the lender with the protection of the borrower's minimum living conditions.
For details of Decree No. 304/2025/ND-CP, click here.
Opening Foreign Currency Accounts Abroad
Circular No. 39/2025/TT-NHNN issued by the State Bank of Vietnam, effective from December 15, 2025, clearly stipulates 12 specific cases permitted to open foreign currency accounts abroad, divided into three groups of subjects.
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The Credit Institution Group is permitted to open accounts in 4 cases, including: conducting foreign exchange operations abroad, executing foreign loans, and serving the operations of representative offices or branches abroad.
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The Economic Organization Group includes 5 cases, ranging from the operations of branches and representative offices abroad to the execution of construction contracts and ship purchasing contracts with foreign parties.
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The Other Organizations Group comprises 3 cases related to receiving foreign aid or sponsorship and other cases permitted by competent authorities.
For details of Circular No. 39/2025/TT-NHNN, click here.
Foreign Exchange Management for Offshore Oil and Gas Investment
Circular No. 40/2025/TT-NHNN issued by the State Bank of Vietnam, effective from December 15, 2025, provides guidelines on foreign exchange management for offshore investment activities in the oil and gas sector.
An important new point is the regulation regarding the principles of opening and using investment capital accounts. After being granted an Offshore Investment Registration Certificate, the investor must open a payment account in a foreign currency at a permitted bank. In cases where capital is transferred in Vietnamese Dong, the investor is allowed to simultaneously open accounts in both Vietnamese Dong and foreign currency at the same bank.
Each investment project must have a separate investment capital account. Investors are responsible for registering and registering changes to foreign exchange transactions with the State Bank of Vietnam to ensure compliance and transparency.
For details of Circular No. 40/2025/TT-NHNN, click here.
Classification of Assets in Banking Operations
Circular No. 37/2025/TT-NHNN issued by the State Bank of Vietnam, effective from December 15, 2025, amends and supplements regulations on the classification of assets in the operations of commercial banks, non-bank credit institutions, and foreign bank branches.
Regarding reporting hierarchy, the Circular stipulates that banks and non-bank credit institutions shall submit reports on self-classification of debts and risk provisioning results to the Department for Management and Supervision of Credit Institutions. Foreign bank branches subject to micro-prudential supervision shall submit reports directly to the Regional Branch of the State Bank of Vietnam.
The Circular also clearly defines the responsibilities of units in inspection, supervision, and handling of violations. Regarding the procedure for approving qualitative debt classification, the State Bank of Vietnam shall issue a written approval or refusal within 20 days from the date of receipt of a complete and valid dossier.
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