Vietnam's financial sector has witnessed significant regulatory developments with the introduction of Decree 162/2024/ND-CP, which establishes guidelines for licensing people's credit funds and regulating foreign investment in this sector. This guide provides an in-depth analysis of the decree's key provisions and implications.
People's credit funds play a vital role in Vietnam's financial ecosystem, particularly in providing financial services to rural and underserved communities. These institutions operate as cooperative financial organizations, serving their members through various banking and credit services.
Role in Vietnam's Financial System
Credit funds serve as crucial intermediaries in Vietnam's financial landscape, bridging the gap between traditional banking services and local communities. They provide essential financial services including savings products, loans, and basic banking operations to their members.
Key Licensing Requirements
Basic Conditions for Establishment
Under Decree 162, applicants must meet several fundamental requirements to establish a people's credit fund: (Article 10 Decree 162/2024/ND-CP)
Regarding capital: The minimum charter capital must be equal to the statutory capital required by the government when applying for the license.
Regarding members:
There must be at least 30 members who meet the required conditions and have sufficient financial capacity to contribute capital for the establishment of the People's Credit Fund.
The founding members must be individuals, households, or legal entities (excluding social funds and charitable funds) that are operating normally and meet the conditions specified by the regulations.
Regarding governance:
Managers, operators, and supervisory board members must meet the standards and conditions set by the regulations.
The organizational structure of the Board of Directors and the Supervisory Board must comply with the provisions of the Credit Institutions Law.
A charter must comply with the provisions of the Credit Institutions Law and other relevant legal regulations.
There must be an establishment plan and a feasible business plan for the first 3 years of operation.
Foreign Investment Regulations
People's credit funds are allowed to raise capital through borrowing from credit institutions and foreign bank branches (Article 24.4 Circular 29/2024/TT-NHNN).
People's credit funds are entitled to receive funding from the State, domestic organizations, and individuals, as well as foreign entities (Article 29.4 Circular 29/2024/TT-NHNN).
Application Process (Section 8, Part 2 of Decision 658/QĐ-NHNN)
The licensing process involves several key stages:
Required Documentation
The Charter of the People's Credit Fund
Minutes of the meeting of the founding congress of the People's Credit Fund.
The resolution of the founding congress on the approval of the Charter, the election of the Chairman and other members of the Board of Directors, the Head of the Supervisory Board, and other members
The decision of the Board of Directors of the People's Credit Fund on the appointment of the Director of the People's Credit Fund
Documents proving the ownership or legal right to use the location of the head office.
For details on Required Documentation, refer to this Article: Complete Guide to Credit Fund Licensing Requirements in Vietnam 2024
Submission and Review Procedures
Applications undergo a comprehensive review process:
The preparatory committee prepares the application for a license and submits it to the State Bank branch of the province or city.
The State Bank branch confirms receipt of the complete application or requests additional documents within 10 working days.
The State Bank branch sends a written request for feedback from the local People's Committee and the Vietnam Cooperative Bank regarding the proposed personnel and the establishment of the credit fund within 10 days.
The People's Committee and the Vietnam Cooperative Bank have 10 days to provide feedback. If no feedback is received, the State Bank branch considers that there are no objections.
The State Bank branch sends written approval for the principle of establishing the credit fund and the proposed personnel list within 30 days.
The preparatory committee organizes the founding congress of the credit fund and submits the licensing application within 90 days.
Issuance of License:
The State Bank branch confirms receipt of the complete application or requests additional documents within 5 working days.
The State Bank branch issues the license within 60 days if the application is complete, or provides a written explanation if the license is not granted.
For more details, please refer to the National Public Service Portal: The procedures for granting a license for the establishment and operation of a people's credit fund.
Compliance and Monitoring
Licensed credit funds must maintain ongoing compliance with various regulatory requirements:
Ongoing Requirements
Regular Reporting Obligations: Credit funds must provide regular and accurate reports to regulators, ensuring transparency and allowing for monitoring of financial health and compliance.
Maintenance of Capital Adequacy: Funds must maintain sufficient capital buffers to absorb potential losses, ensuring financial stability and the ability to meet obligations.
Risk Management Standards: Credit funds must implement robust risk management practices to identify and mitigate risks (e.g., credit, market, liquidity, operational) to ensure business continuity.
Internal Control Systems: Funds need effective internal controls to prevent fraud, ensure operational efficiency, and guarantee compliance with both internal policies and external regulations.
Conclusion
Decree 162/2024/ND-CP represents a significant step in modernizing Vietnam's credit fund sector. It provides a clear framework for participants while ensuring proper oversight and stability in the financial system.
Key Takeaways
Comprehensive licensing framework for credit funds
Foreign investment participation
Enhanced regulatory oversight mechanisms
Focus on sustainable development of the sector
For organizations interested in establishing or investing in people's credit funds in Vietnam, understanding and complying with Decree 162's requirements is essential for success in this evolving market.
The establishment of the International Financial Center necessitates an appropriate judicial institution capable of resolving cross-border investment and business disputes. In this context, the Law on Specialized Court at the International Financial Center was enacted as a key legal foundation for the application of a professional adjudicatory mechanism, thereby enhancing Vietnam’s profile and competitiveness in the international arena.
Every year on November 20, Vietnam honors teachers for their dedication to the noble cause of education. This year, the celebration is especially meaningful as the National Assembly has adopted the Law on Teachers, a major step forward in honoring and developing the contigent of teachers, and improving education quality nationwide.
At the exhibition of the 2025 Law Day Celebration organized by the Ministry of Justice on November 7, 2025, the Chairman of the National Assembly, Mr. Tran Thanh Man, directly interacted with the Law AI system operated and developed by LuatVietnam.vn on the National Law Portal.
In recent years, along with the strong growth of the economy and the increasing demand for loans, credit activities in Vietnam have expanded both in scale and scope. However, accompanying this development is the reality that disputes over credit contracts have become increasingly common, not only rising sharply in number but also becoming more complex in nature and extent.
As Vietnam accelerates the transition to clean energy models, the revised Atomic Energy Law stands out as a statutory imperative to facilitate the safe and sustainable development of nuclear power for peaceful purposes.
Vietnam is shaping strategic steps to become a destination for global capital flows, most notably with the plan to establish international financial centers in Ho Chi Minh City and Da Nang. As the doors of integration open wider, domestic enterprises will have opportunities to access large-scale investment projects, but at the same time must also face more sophisticated legal risks.
The strong development of international exchanges has made civil relations with foreign elements increasingly common in Vietnam. Among them, inheritance is a particularly complex field, as it not only relates to property rights and personal rights but is also simultaneously governed by multiple legal systems. Therefore, a comprehensive study of the inheritance estate of foreigners in Vietnam is not only of theoretical significance but also of practical value, helping to ensure the legitimate rights and interests of the parties
On October 27, 2025, the Ministry of Justice presented the Minister’s Commendation to organizations and individuals who have outstanding and exemplary achievements, and are leading the emulation movement of the justice sector in 2025. Among them, LuatVietnam was honored to receive the Commendation in both collective and individual categories.
As Vietnam prepares to establish International Financial Centers in Ho Chi Minh City and Da Nang, domestic enterprises will have greater opportunities to access large capital sources and participate more deeply in the global financial market. However, alongside these opportunities come significant risks, especially in lending and borrowing activities.
The first-ever draft Law on Artificial Intelligence (AI) has been unveiled to establish a comprehensive legal framework, promote innovation, and ensure responsible development and use of AI technologies in Vietnam.
English
RSS
