Banking Wrap

VAMC
The Government issued Decree 18/2016/ND-CP dated 18 March 2016 amending Decree 53/2013/ND-CP on the establishment, organization and operation of the Vietnam Asset Management Company (VAMC). Accordingly, after the approval from the SBV, the VAMC may extend the term of the special bonds used for refinancing bad debts of credit institutions under restructuring or in financial difficulty. The aggregate term of the special bonds is ten years. On 12 April 2016, the SBV passed Decision No. 618/QD-NHNN allowing the VAMC to prepare and implement the plan to buy bad debts at market price. Decision 618 sets out the scope and conditions for the bad debts to be purchased at market price.

Start-ups

Draft decree on venture capital for Start-up
The Government released a draft decree guiding the establishment, management organization and operation of venture capital funds for start-ups (Funds). Here are some key points:

  • The Funds regulated in this draft decree is not governed by the laws on securities.
  • The Fund may be established by domestic and foreign individuals and organisations.
  • The Fund is not a legal entity however it has a fund charter, a members committee, a seal and a bank account;
  • Members of the Fund must contribute capital within 90 days from the date a certificate for fund establishment is granted.
  • If a member of a Fund wish to transfer its capital contribution to a third party, the selling member must provide the existing investor a right of first refusal over the interest of the selling member in the Fund.
  • Investment in startups must be made in a written contract which must contain the following rovisions: information of the investor and theners of the startups, value of the enterprise pre and post investment and dispute resolution.

Please click Asia Counsel Insights 17 April 2016 for more information.

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