The State Bank of Vietnam (SBV) has recently released Circular 11/2022/TT-NHNN to improve the legal framework for bank guarantee to better suit international practices and comply with Vietnam’s relevant regulations such as the Law on Real Estate Business, Law on Investment, and Civil Code.

Bui Duc Giang
Attorney at law and PhD in law
Guarantees are personal security recognized by the general law of security. The security is used both in the context of corporate financing and retail banking. Civil Code 91/2015/QH13 dated November 24, 2015 (the Civil Code) creates the general law for this security interest of which this article tries to provide an overview.

On September 29, 2017, the State Bank of Vietnam enacted Circular 13/2017/TT-NHNN (effective as of November 15, 2017) amending a number of articles of Circular 07/2015/TT-NHNN on bank guarantees (Circular 07). The main changes brought about by the new text relate to guarantees for housing projects and are embedded in Article 12 of Circular 07.

The Government looks forward to receiving feedback on revaluation of economic institutions and stimulating start-ups, especially those by women or in agriculture, said Deputy PM Vuong Dinh Hue.

On June 26, 2015, the State Bank of Vietnam released Circular 07 which replaces Circular No 28 of 2012. The new text contains various changes to the old legal framework. This article focuses on some aspects relating to guarantees issued by Vietnamese credit institutions in favor of offshore entities.

Under the Law on Real Estate Business, before selling or granting hire-purchase of a future house, the project owner imust sign a guarantee contract with a commercial bank to secure the refund to the customer of an advance of a percentage of the contract price and all other amounts in case of the owner’s failure to hand over the house to the customer according to an undertaken schedule.

Analysts said the revised laws on housing and real estate business have made Vietnam’s property market more attractive, given its reasonable prices.