Potential loss of priority upon re-registration of security interest over listed securities with Vietnam Securities Depository

From 1 January 2021, Decree 155/2020 requires securities interests (e.g., a mortgage) over listed securities to be registered with the Vietnam Securities Depository and Clearing Corporation (VSD). Since security interest over unlisted securities is registered with the National Register Agency of Secured Transactions (NRAST), a re-registration of the security interest with VSD is likely to be required when the unlisted securities become listed. However, such a re-registration may result in a loss of ranking of the relevant security interests.

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Written by Nguyen Quang Vu On In ,

New public disclosure rules in Vietnam stock markets

Following the issuance of the new Securities Law 2019, in November 2020, the Ministry of Finance issued Circular 96/2020 guiding on disclosure of information on securities market (Circular 96/2020) with effect from 1 January 2021. Circular 96/2020 includes several new points as follows:

Definition of “transaction date” and “transaction completion date”.

Circular 96/2020 provides detailed description to define a “transaction date” and “transaction completion date”. The detailed description will help clarify the disclosure obligations of the entities subject to disclosure obligation.

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Written by Nguyen Quang Vu On In ,

Deferred payment foreign loan

Under Circular 03 of the State Bank dated 26 February 2016 on foreign exchange control of foreign loan and repayment by enterprises, as amended (Circular 03/2016), import of goods with deferred payment is one of forms of foreign loan (“deferred payment foreign loan”).

Definition

Deferred payment foreign loan is defined as the import of goods for which the first drawdown date is prior to the final payment date, in which,

· The drawdown date is (i) 45th day from the checking completion date of recorded on the customs declaration if the bill of lading is not required by the bank of borrower; or (ii) 90th day from the issuance date of bill of lading if the bill of lading is required by the bank of borrower.

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Written by Lawyers VNLaw On In

Applicability of Vietnam Anti-Money Laundering Law (AML) to offshore financial institutions

Under the AML Law 2012, an entity will be subject to the requirement to conduct KYC or submit AML reports to the SBV if it is, among others, a finance organisation which is “licensed” to conduct one or more financial services or activities. It is not clear from the AML Law 2012 and its implementing regulations if the term “licenced” above refers to the finance organisations licensed by an authority of Vietnam or also includes foreign finance organisation licensed by a foreign authority. However, it should be reasonable to take the first interpretation because:

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Written by Nguyen Quang Vu On In