Press release on issuance of Circular No. 20/2024/TT-NHNN
Hanoi, June 28, 2024 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 20/2024/TT-NHNN regulating factoring and other related services.
Circular No. 20/2024/TT-NHNN is composed of 5 Chapters with 33 Articles, and shall replace Circular No. 02/2017/TT-NHNN of the SBV Governor dated May 17, 2017 regulating factoring operations of the credit institutions and the foreign bank branches.
The issuance of Circular No. 20/2024/TT-NHNN aims at improving the legal framework, ensuring alignment with the international practices, and compliance with the relevant provisions of laws.
Circular No. 20/2024/TT-NHNN amends and supplements a number of substances as follows:
(i) Subjects of application; (ii) Factoring for sellers without refund commitments; (iii) The currency used for factoring; (iv) Conditions for factoring for customers; (v) Requirements for a factoring provider; (vi) Information on the related persons; (vii) Factoring by electronic means; (viii) The means of disbursement; (ix) Other services related to factoring; (x) Rights and obligations of the parties; etc.
This new Circular takes effect from July 1, 2024.
HY