Law on Credit Institutions revised, No. 96/2025/QH15

LAW

Amending and Supplementing a Number of Articles of the Law on Credit Institutions

Pursuant to the Constitution of the Socialist Republic of Vietnam, which had a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law Amending and Supplementing a Number of the Law on Credit Institutions No. 32/2024/QH15, which had a number of articles amended and supplemented under Law No. 43/2024/QH15.

Article 1. Amending and supplementing a number of articles of the Law on Credit Institutions

1. To amend and supplement Clause 1, Article 193 as follows:

“1. The State Bank shall decide on the grant of special loans with collateral or without collateral to credit institutions in the cases prescribed in Clause 1, Article 192 of this Law. The collaterals for the State Bank’s special loans must comply with the State Bank Governor’s regulations. The interest rate of special loans provided by the State Bank shall be 0% per annum.”.

2. To add Articles 198a, 198b and 198c after Article 198 as follows:

“Article 198a. Rights to seize the collateral

1. The securing party and the person holding the collateral of a non-performing loan shall be obliged to deliver the collateral, together with relevant documents and legal dossiers of the collateral, to the credit institution, foreign bank branch, or debt trading and handling organization for disposal in accordance with the agreement in the security contract or other document (hereinafter referred to as the security contract) and the law on security for the performance of obligations.

In case the securing party or the person holding the collateral fails to deliver the collateral to the credit institution, foreign bank branch, or debt trading and handling organization for disposal, such credit institution, foreign bank branch, or debt trading and handling organization shall be entitled to seize the collateral in accordance with this Article.

2. A credit institution, foreign bank branch, or debt trading and handling organization shall have the right to seize collateral of a non-performing loan upon satisfaction of all the following conditions:

a) Occurrence of a circumstance requiring collateral disposal in accordance with Article 299 of the Civil Code;

b) The security contract contains an agreement in which the securing party consents to the secured party's right to seize the collateral of the non-performing loan upon the occurrence of a circumstance requiring collateral disposal under the law on security for the performance of obligations;

c) The security measure has taken effect and is opposable against third parties in accordance with the law on security for the performance of obligations;

d) The collateral is not under dispute in any case that has been accepted but not yet resolved or is being resolved by a competent Court; is not subject to any interim emergency measures by the Court; is not subject to distraint or enforcement security measure under the law; and is not subject to a suspension of disposal as prescribed by the law on bankruptcy;

dd) The collateral to be seized satisfies the conditions as prescribed by the Government;

e) The credit institution, foreign bank branch, or debt trading and handling organization has fulfilled the obligation to disclose information in accordance with Clause 3 or Clause 4 of this Article.

3. No later than 15 days prior to the date of seizing the collateral which is real estate, the credit institution, foreign bank branch, or debt trading and handling organization shall complete the procedure for disclosing the information regarding the time, location of seizure, the collateral to be seized, and the reason for the seizure. Disclosure of information shall be conducted in the following forms:

a) Posting the information on its own website;

b) Sending written notification to the commune-level People’s Committee and the commune-level Public Security agency where the collateral is located;

c) Posting the written notification at the headquarters of the commune-level People’s Committee where the securing party has registered its address as stated in the security contract and at the headquarters of the commune-level People’s Committee where the collateral is located;

d) Notifying the securing party and the person holding the collateral (if any) using the notification method as agreed in the security contract.

If no such agreement exists, the credit institution, foreign bank branch, or debt trading and handling organization shall directly send the written notification to the securing party and the person holding the collateral (if any), or do so through authorization, postal services, electronic means in the form of data messages, or other methods based on the information and address provided by the securing party or the person holding the collateral.

In case the securing party or the person holding the collateral (if any) changes address without notifying the secured party, the address of the securing party or person holding the collateral shall be determined based on the address previously provided under the security contract or as stored by the security measure registration agency.

4. Before seizing the collateral which is movable estate, the credit institution, foreign bank branch, or debt trading and handling organization shall complete the procedure for disclosing the information regarding the collateral to be seized, and the reason for the seizure. Disclosure of information shall be conducted in the following forms:

a) Posting the information on its own website;

b) Sending written notification to the commune-level People’s Committee and the commune-level Public Security agency where the securing party has registered its address under the security contract;

c) Notifying the securing party and the person holding the collateral (if any) using the notification method as agreed in the security contract.

If no such agreement exists, the credit institution, foreign bank branch, or debt trading and handling organization shall directly send the written notification to the securing party and the person holding the collateral (if any), or do so through authorization, postal services, electronic means in the form of data messages, or other methods based on the information and address provided by the securing party or the person holding the collateral.

In case the securing party or the person holding the collateral (if any) changes address without notifying the secured party, the address of the securing party or person holding the collateral shall be determined based on the address previously provided under the security contract or as stored by the security measure registration agency.

5. The commune-level People’s Committee and the commune-level Public Security agency at the location where the collateral is seized shall, within the scope of their functions, tasks, and powers, ensure security, order, and social safety during the process of seizing the collateral.

In case the securing party fails to cooperate or is not present according to the notification from the credit institution, foreign bank branch, or debt trading and handling organization, a representative of the commune-level People’s Committee at the location of collateral seizure shall witness and sign the minutes of collateral seizure.

6. A credit institution may only authorize the seizure of collateral to its debt management and asset exploitation company; a debt trading and handling organization may only authorize the seizure of collateral to the selling credit institution or to the debt management and asset exploitation company of such selling credit institution; a credit institution subject to mandatory transfer may authorize the seizure of collateral to the receiving credit institution or to the debt management and asset exploitation company of the receiving credit institution.

In the process of seizing collateral, the credit institution, foreign bank branch, debt trading and handling organization, or the entity authorized to seize the collateral under this Clause shall not apply any measures that violate prohibitions of law or social ethics.

7. Pursuant to this Law and other relevant laws, the credit institution, foreign bank branch, or debt trading and handling organization shall formulate and promulgate internal regulations on the order and procedures for seizing collateral, including regulations on the authorization of collateral seizure as prescribed in Clause 6 of this Article.

Article 198b. Distraint of assets of judgment debtors used as collateral for non-performing loans

Assets of a judgment debtor currently used as collateral for a non-performing loan at a credit institution, foreign bank branch, or debt trading and handling organization shall be subject to distraint and disposal in accordance with the law on civil judgment enforcement if it falls under one of the following cases:

1. The security contract was concluded and became effective after the date on which the court judgment or decision became legally effective;

2. Enforcement of judgments or decisions on alimony or compensation for life or health damage;

3. With written consent from the credit institution, foreign bank branch, or debt trading and handling organization.

Article 198c. Return of collateral being evidence in criminal cases

1. After completing the procedures for evidentiary determination and upon concluding that such return does not affect the settlement of the case or the enforcement of the criminal judgment, the proceeding-conducting body shall return the evidence in the criminal case, which is collateral for a non-performing loan, upon the request of the secured party being a credit institution, foreign bank branch, or debt trading and handling organization, provided that the security contract contains an agreement under which the securing party consents to the secured party’s right to seize the collateral of the non-performing loan upon the occurrence of circumstances requiring disposal of the collateral in accordance with the law on security for the performance of obligations.

2. The disposal of collateral after being returned under Clause 1 of this Article shall be carried out in accordance with the law on security for the performance of obligations.”.

3. To remove the phrase “or within 60 days after the Prime Minister decides on grant of a special loan specified in Clause 4 of this Article” in Clause 3, Article 169.

4. To annul Clause 4, Article 169; Clause 4, Article 172; Clause 5, Article 179; Clause 7, Article 183; and Clause 4, Article 193.

5. To remove the phrase “, 5” in Clause 4, Article 180.

Article 2. Effect

1. This Law takes effect from October 15, 2025.

2. The Government shall guide the implementation of this Law.

Article 3. Transitional provisions

1. Special loans granted by the State Bank to credit institutions under the Prime Minister's decisions before the effective date of this Law shall be handled as follows:

a) The parties shall continue to perform in accordance with the Prime Minister’s decision on special loans and the special loan agreements already signed;

b) The State Bank shall consider extending the special loan term with an interest rate of 0% per annum as prescribed by the Governor of the State Bank.

2. Collateral for non-performing loans that was subject to distraint and disposal under Article 90 of the Law on Civil Judgment Enforcement prior to the effective date of this Law, but which has not yet been disposed of, shall continue to be handled in accordance with the law on civil judgment enforcement.

 ^{__________________________________________________________________________}

This Law was passed on June 27, 2025, by the XV^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.