SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, February 28, 2006
ON ORGANIZATION AND OPERATION OF FOREIGN BANK BRANCHES, JOINT-VENTURE BANKS, BANKS WITH 100% FOREIGN CAPITAL, AND REPRESENTATIVE OFFICES OF FOREIGN CREDIT INSTITUTIONS IN VIETNAM
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to Vietnam State Bank Law No. 01/1997/ QH10 of December 12, 1997, and Law No. 10/2003/ QH11 of June 17, 2003, Amending and Supplementing a Number of Articles of the Vietnam State Bank Law;
Pursuant to Credit Institutions Law No. 02/1997/QH10 of December 12, 1997, and Law No. 20/2004/QH11 of June 15, 2004, Amending and Supplementing a Number of Articles of the Credit Institutions Law;
At the proposal of the Governor of the State Bank of Vietnam,
Article 1.- Scope of regulation
This Decree provides for organization and operation of foreign bank branches, joint-venture banks and banks with 100% foreign capital, and representative offices of foreign credit institutions in Vietnam.
Article 2.- Application of legal provisions
Organization and operation of foreign bank branches, joint-venture banks, banks with 100% foreign capital and representative offices of foreign credit institutions in Vietnam shall comply with the provisions of the Credit Institutions Law, the provisions of this Decree and other relevant provisions of Vietnamese law; in cases where treaties to which Vietnam has signed or acceded to contain provisions different from the said provisions, the provisions of such treaties shall apply.
Article 3.-Forms of organization
1. Foreign banks shall be allowed to operate in Vietnam in the following organizational forms:
a/ Foreign bank branch;
b/ Joint-venture bank;
c/ Bank with 100% foreign capital.
2. Foreign credit institutions shall contribute capital to and/or purchase shares from credit institutions operating in Vietnam according to regulations of the Government and the guidance of the State Bank of Vietnam (hereinafter referred to as the State Bank).
3. Foreign credit institutions may open representative offices in Vietnam.
Article 4.-Interests and obligations
Foreign bank branches, joint-venture banks, banks with 100% foreign capital, representative offices of foreign credit institutions and their employees shall have their rights and legitimate interests protected and be obliged to comply with Vietnamese laws.
Article 5.- Licensing competence
1. The State Bank has competence to grant licenses for the establishment and operation of joint-venture banks or banks with 100% foreign capital; and licenses for the opening of foreign bank branches or representative offices of foreign credit institutions in Vietnam.
2. The State Bank shall grant licenses in accordance with the provisions of this Decree and other relevant provisions of Vietnamese law.
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