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

LAW

Amending and Supplementing a Number of Articles of the Law on Credit Institutions^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has 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 Articles of Law No. 32/2024/QH15 on Credit Institutions, which has a number of articles amended and supplemented under Law No. 43/2024/QH15.

Article 1. To amend and supplement 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 or without collateral to credit institutions in the cases specified in Clause 1, Article 192 of this Law. The collateral for the State Bank’s special loans must comply with the State Bank Governor’s regulations. The interest rate on the State Bank’s special loans is 0% per year.”.

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

“Article 198a. The right to seize collateral

1. The securing party or the current holder of the collateral for a non-performing loan is obliged to hand over such collateral together with its documents and legal records to the credit institution, foreign bank branch or debt trading and handling institution for realization as agreed in the security agreement or another document (below collectively referred to as security agreement) in accordance with the regulations on security for performance of obligations.  

In case the securing party or the current holder of the collateral fails to hand over the collateral to the credit institution, foreign bank branch or debt trading and handling institution, the latter may seize such collateral under this Article. 

2. A credit institution, foreign bank branch or debt trading and handling institution may seize the collateral for a non-performing loan when the following conditions are fully satisfied:

a/ A case of realization of collateral specified in Article 299 of the Civil Code arises;

b/ The security agreement states that the securing party consents to the secured party’s seizure of collateral for the non-performing loan upon occurrence of a case of realization of collateral in accordance with the regulations on security for performance of obligations;

c/ The security interest has become effective for a third party in accordance with the regulations on security for performance of obligations;

d/ The collateral is not under dispute in a case which has been accepted but not yet settled or is being settled by a competent court; not being subject to a provisional urgent measure applied by a court; or not being subject to distraint or subject to a judgment enforcement security measure in accordance with law; or not subject to suspension of realization under the law on bankruptcy;

dd/ To-be-seized collateral must satisfy the conditions specified by the Government;

e/ The credit institution, foreign bank branch or debt trading and handling institution has fulfilled the information disclosure obligation specified in Clause 3 or 4 of this Article. 

3. At least 15 days before seizing the collateral being immovables, a credit institution, foreign bank branch or debt trading and handling institution shall carry out procedures for disclosing information about the time and place for seizure of the collateral, the collateral to be seized and reasons for the seizure. Information disclosure takes the following forms:

a/ Posting information on the website of the credit institution, foreign bank branch or debt trading and handling institution; 

b/ Sending a notice to the commune-level People’s Committee and commune-level Public Security agency of the locality where the collateral is located;

c/ Posting up a notice at the head office of the commune-level People’s Committee of the locality where the securing party registers its address as stated in the security agreement and at the head office of the commune-level People’s Committee of the locality where the collateral is located;

d/ Sending a notice to the securing party and the current holder of the collateral (if any) by the mode stated in the security agreement.

If no agreement is available, the credit institution, foreign bank branch or debt trading and handling institution shall send a notice directly to the securing party and the current holder of the collateral (if any) or by authorization, post, electronic data message or another mode, based on the information and address provided by the securing party and the current holder of the collateral.  

In case the securing party or the current holder of the collateral (if any) changes its/his/her address without notifying such to the secured party, the address previously provided by the securing party or the current holder of the collateral as stated in the security agreement or based on information stored at the security interest registration agency shall be used. 

4. Before seizing the collateral being movables, a credit institution, foreign bank branch or debt trading and handling institution shall carry out procedures for disclosing information about the collateral to be seized and reasons for the seizure. Information disclosure takes the following forms:

a/ Posting information on the website of the credit institution, foreign bank branch or debt trading and handling institution; 

b/ Sending a notice to the commune-level People’s Committee and the commune-level Public Security agency of the locality where the securing party registers its address as stated in the security agreement;

c/ Sending a notice to the securing party and the current holder of the collateral (if any) by the mode stated in the security agreement.

If no agreement is available, the credit institution, foreign bank branch or debt trading and handling institution shall send a notice directly to the securing party and the current holder of the collateral (if any) or by authorization, post, electronic data message or another mode based on the information and address provided by the securing party and the current holder of the collateral.  

In case the securing party or the current holder of the collateral (if any) changes its/his/her address without notifying such to the secured party, the address previously provided by the securing party or the current holder of the collateral as stated in the security agreement or based on information stored at the security interest registration agency shall be used. 

5. Commune-level People’s Committees and commune-level Public Security agencies of the localities where the collateral is seized shall, within the ambit of their functions, tasks and powers, ensure security and social order and safety during the seizure of the collateral.

In case the securing party fails to cooperate or is not present according to the notice of the credit institution, foreign bank branch or debt trading and handling institution, a representative of the commune-level People’s Committee of the locality where the collateral is seized shall witness and sign the written record of the seizure.

6. A credit institution may only authorize the seizure of collateral to its asset management company; a debt trading and handling institution may only authorize the seizure of collateral to a debt-selling credit institution or the latter’s asset management company; a credit institution subject to mandatory transfer may authorize the seizure of collateral to the credit institution as mandatory transferee or the latter’s asset management company.

During collateral seizure, the credit institution, foreign bank branch, debt trading and handling institution or organization authorized to seize the collateral specified in this Clause may not take measures that are banned by law or contravene social morality. 

7. Pursuant to this Law and relevant laws, credit institutions, foreign bank branches and debt trading and handling institutions shall formulate and promulgate internal regulations on the order and procedures for seizure of collateral, including also regulations on authorization for seizure of collateral as specified in Clause 6 of this Article.

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

A judgment debtor’s assets currently used as collateral for a non-performing loan at a credit institution, foreign bank branch or debt trading and handling institution shall be distrained and realized in accordance to the law on enforcement of civil judgments in one of the following cases:

1. The security agreement has been signed and comes into effect after the court judgment or ruling takes legal effect;

2. For enforcement of a judgment or decision on alimony or compensation for damage related to human life or health;

3. When so consented in writing by the credit institution, foreign bank branch or debt trading and handling institution.

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

1. After completing procedures for the identification of evidence and deeming that the return of exhibits being collateral for non-performing loans will not affect the settlement of the case and the enforcement of the criminal judgment, the proceedings-conducting body shall return such exhibits at the proposal of the secured party being a credit institution, foreign bank branch or debt trading and handling institution if the security agreement states that the securing party consents to the secured party’s seizure of collateral for the non-performing loans upon occurrence of a case of realization of collateral in accordance with the regulations on security for performance of obligations.

2. The realization of returned collateral under Clause 1 of this Article must comply with the regulations on security for performance of obligations.”.

3. To annul the phrase “or within 60 days after the Prime Minister decides on grant of a special loan under 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 “, 5” in Clause 4, Article 180.

Article 2. Implementation provisions

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

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

Article 3. Transitional provisions

1. For the State Bank’s special loans decided by the Prime Minister before the effective date of this Law:

a/ The parties may continue to implement the Prime Minister’s Decisions on grant of special loans, and the signed contacts on grant of special loans;

b/ The State Bank may consider extension of the term of special loans with the interest rate of 0% per year according to the State Bank Governor’s regulations.

2. For collateral for non-performing loans that is subject to distraint and realization under Article 90 of the Law on Enforcement of Civil Judgments before the effective date of this Law but has not yet been completely realized, the law on enforcement of civil judgments may continue to be applied.

This Law was passed on June 27, 2025, by the 15^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.-

Chairman of the National Assembly
TRAN THANH MAN