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| Nguyen Thi Thu Hang, Deputy Director General of the Ministry of Justice’s National Registration Agency for Secured Transactions and State Compensation addresses the event __ Photo: MOJ |
The bottlenecks in implementing Government Decree 99/2022/ND-CP and the legal enhancements regarding the registration of security interests have been high on the agenda of a roundtable discussion jointly held by the Ministry of Justice’s Department of Secured Transactions Registration and State Compensation and the International Finance Corporation (IFC) of the World Bank Group.
The event, took place in Ho Chi Minh City on July 15, drew the participation of representatives of municipal departments, security interest registration agencies, credit institutions, notarial practice organisations, and experts and researchers from law universities.
Addressing the opening of the event, Nguyen Thi Thu Hang, Deputy Director General of the department, said that after more than three years of implementation, Decree 99 has contributed to improving the legal framework and promoting the development of a modern, transparent and efficient registration system for security interests. This helps citizens and businesses get better access to and benefit more from public services regarding the registration of security interests.
However, Hang pointed out that Decree 99 has also revealed limitations and shortcomings. Specifically, it fails to establish a comprehensive mechanism for providing end-to-end online public services and extracting information from databases, lacks consistency and alignment with new provisions of relevant laws; and still contains ambiguous provisions that fail to address issues arising from reality.
Echoing these concerns, Assoc. Prof. Dr. Vu Thi Hong Yen, Dean of the Faculty of Law at the Sai Gon University, also pointed to practical limitations and shortcomings in the implementation of Decree 99. These issues relate to information subject to declaration upon registration; security for the performance of obligations and registration of security interests involving the mining rights; and registration of security interests in case a legal person’s branch acts as an applicant, or a person signing or appending the stamp in the registration application form. Other issues include determination of the maximum validity period of registrations; connection and sharing of data on registration of security interests between security interest registration agencies and road motor vehicle registration agencies; and formulation of legal documents governing the registration of security interests.
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| An overview of the event __ Photo: MOJ |
To lay a solid basis for improving the existing provisions on registration of security interests, participants proposed several matters requiring amendments, such as the determination of the scope of collateral eligible for registration in case collateral is goods circulated in the production or business process of the securing party; information required to be declared upon the registration; cases of non-rejection of registration when information on land use rights and land-attached assets has changed; and the legal framework and mechanism for control of digital assets.
The participants also pointed to the need to amend the provisions on mechanisms for notarial practice organisations to perform registrations through the single-window system, mechanisms for online registration of security interests involving land use rights and land-attached assets, and mechanisms for free searches of preliminary information on registration of security interests.
According to the representative of the department, a draft decree replacing Decree 99 is being formulated around major orientations which include undertaking comprehensive administrative reform towards providing end-to-end online public services in registration of security interests; and improving the mechanism for connecting and sharing registration data to build a shared-use and unified database managed and operated by the Ministry of Justice.
Furthermore, the draft aims to resolve obstacles, deficiencies and limitations that have arisen during the implementation of Decree 99. It is also designed to ensure consistency with relevant laws, aiming to meet the requirements of technology-driven and digital platform-based economic and business models.
Hang affirmed that the opinions and discussions at the event serve as an essential basis for the department to continue reviewing, researching, absorbing opinions and proposing appropriate statutory improvements. This will assist the Ministry of Justice in advising the Government on drafting and promulgating a new decree to replace Decree 99, thus creating a complete legal basis for fast and convenient registration of security interests, meeting the needs of all concerned parties, protecting the legitimate rights and interests of organisations and individuals, and promoting the credit market’s operation.- (VLLF)
