New legal documents of Vietnamese banking sector in July 2014

New legal documents of Vietnamese banking sector in July 2014

There four new key legal documents of Vietnamese banking sector in July 2014 includes:

1. The first new legal documents of Vietnamese banking sector in July 2014

-Official Letter 4764/NHNN-TD dated 04 July 2014 of SBV on assistting the enterprises, damaged seriously by the recent law breaking actions in specific locations relating to East Sea circumstances, to borrow foreign currency for import of machinery.

The bank are permitted to provide loan in foreign currency to these enterprises to import machinery in order to recover and quickly get back on track the production without having sufficient foreign currency for repayment provided that the bank shall make a report to SBV for consideration and approval.

2. The second new legal documents of Vietnamese banking sector in July 2014

 -Letter No.417/CDNH dated 17 July 2014 of Labor Union of Vietnam Banks on protecting the rights of employee. There are two key points to be noted as follows:
a. The bank must organize annual employee conference to discuss labor, business matters etc between employees and employer and report given to Labor Union of Vietnam Banks
b. Any case dealing with breach of labour discipline, the bank must invite labor representative (Labor Union of Vietnam Banks) at least 10 dates prior to the meeting date of labor discipline.

3. The third new legal documents of Vietnamese banking sector in July 2014

- Decree 70/2014/ND-CP dated 17 July 2014 of Government providing regulations for implementation of Ordinance on foreign exchange will go in force from 5th September, 2014.

There are two key points of regulatory changes as follows:

a.   Foreign direct investment (FDI) enterprises are permitted to open one (01) VND capital account at a permitted credit institution which they opened capital account in foreign currency to record capital contribution from enterprises being resident and foreign partners in business cooperation contracts.
b.  Residents being Vietnamese with foreign currency cash shall be permitted to deposit it in savings accounts at authorized credit institutions. This means that foreigners are not permitted to deposit foreign currency cash in saving account.

4. The new fourth legal documents of Vietnamese banking sector in July 2014

  Circular 15/2014/TT-NHNN dated 24 July 2014 of SBV guiding foreign exchange control on business activities of prize electronic gambling for foreigners, will take effective from 6th September 2014.

 a.  Foreign players are permitted to receive prize money in foreign currency cash or prize money in a convertible foreign currency by transfer.
 b. An enterprise licensed by the SBV must open one (1) specialized account for each type of foreigncurrency at one (1) authorized bank to serve the business activities of prize electronic gambling for foreigner in accordance with this Circular.

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