The State President Office announced the promulgation of three laws on credit institutions, State Bank of Vietnam and taxes on the use of non-farm land at a press briefing on July 7.
The 10 chapter, 163 article Law on Credit Institutions legalises State and Party stances and policies on the development of creditors’ systems and operations. It is a good revision of and update on a similar law approved in 1997.
The Law on Credit Institutions will come into force on January 1, 2011.
The Law of the State Bank of Vietnam , which will also come into effect on January 1, 2011, gives the SBV a mandate for stepping in creditors’ operations. The central bank is authorised to apply special treatments on credit institutions seriously violating monetary and banking rules or facing financial problems which possibly destabilise the banking system.
The SBV has also been given a broader authority to lending in special cases. It means lending is not only available for creditors “in the brink of losing payment capacity” but also for those creditors which are operational normally but “at risks of losing payment capacity due to other serious incidents.”
It is aimed at ensuring early intervention and reducing risks for the banking system.
The Law on Non-Farm Land Use Taxes strengthens State management on land. It also encourages institutions and individuals to use land in a thrift and effective way, thus controlling speculation of land and stimulating a healthy real estate market.
The law is to come into force on January 1, 2012.