Directive No. 04/2002/CT-NHNN on the legal affairs work of the State Bank of Vietnam in 2002

DIRECTIVE

OF THE GOVERNOR OF THE STATE BANK NO. 04/2002/CT-NHNN
APRIL 1, 2002 ON LEGAL WORK OF THE STATE BANK IN 2002
In recent times, the legal work of the State Bank has achieved encouraging results; activities in drafting and promulgating regulatory legal documents (RLDs), disseminating and educating laws, inspecting the implementation of laws, reviewing and systematizing RLDs, and providing legal advice have been organized and implemented in a coordinated manner. These activities have played a positive role in the implementation of state management in the banking sector, ensuring effective and consistent implementation of the State Bank's macro-management and guidance activities, contributing significantly to the overall success of the banking industry.

However, the understanding and evaluation of the role of legal work are still insufficient; the implementation of legal work in some cases is limited and has not kept up with practical requirements or management needs. In the work of drafting RLDs, some RLDs have not been issued fully, promptly, and on schedule; the review and assessment of the implementation of RLDs have not been given adequate attention and have not been carried out regularly; some difficulties and obstacles encountered during the implementation of RLDs have not been reflected in a timely manner. Additionally, the lack of information and full understanding of international laws and practices also greatly affects the implementation of various aspects of legal work. These limitations and inadequacies pose challenges for managing banking activities in the future as well as in the process of economic integration at the international level.

In 2002, the focus of the legal work of the State Bank must closely align with the State Bank's management tasks, truly creating effective measures and tools to support the State Bank's management and operation through laws. In addition, legal work must contribute to enhancing the legal awareness of State Bank staff. To fulfill these requirements, the Governor of the State Bank instructs the Departments and Bureaus under the State Bank (Departments and Bureaus), and the provincial branches of the State Bank directly under the central government (State Bank branches) to implement the following contents well:

1. Enhancing capacity in drafting regulatory legal documents to serve state management by the State Bank:

The issuance of regulatory legal documents by the Governor of the State Bank must be timely, closely aligned with practical requirements, feasible, consistent with current legal provisions, and gradually approach international practices. To accomplish this task well, the Governor of the State Bank requires:

- Departments and Bureaus are responsible for implementing the content and progress of drafting regulatory legal documents according to the annual legislative program that has been registered; focusing on drafting regulatory legal documents guiding the Law on the State Bank and the Law on Credit Institutions to ensure compliance with planned schedules. In case the annual legislative program is not followed, Departments and Bureaus must notify the Legal Department so that the Legal Department can report to the Governor.

- Departments and Bureaus primarily responsible for drafting regulatory legal documents must organize surveys and assessments of practical situations, refer to and study relevant provisions and international practices in the banking sector, ensuring consistency with current legal provisions; strictly follow the regulations in the process of drafting and issuing regulatory legal documents, particularly paying attention to soliciting opinions from related units; ensuring compliance with deadlines for reviewing, submitting, signing, and issuing regulatory legal documents.

- The International Relations Department should seek technical assistance from international financial organizations such as the IMF, ADB, and WB for projects aimed at enhancing legal drafting capabilities to suit Vietnam's conditions and international regulations and practices. - The Office of the State Bank, in collaboration with the Banking Information Technology Bureau, should build and update the database of regulatory legal documents in the banking sector on the State Bank's website (SBV.Net) to meet the need for information acquisition and facilitate management activities of the State Bank.

2. Organizing regular and synchronized reviews and systematization of regulatory legal documents.

The review and systematization of regulatory legal documents must be conducted regularly to collect and systematize legal provisions related to the banking sector accurately, comprehensively, and consistently, facilitating the search and application of legal provisions. The review and systematization of regulatory legal documents can be carried out annually or by topic, suitable for different management objects.

- In 2002, the State Bank will continue to conduct a comprehensive review and assessment of the four-year implementation of the Law on the State Bank and the Law on Credit Institutions, preparing proposals for amending and supplementing the two laws to be submitted to the Government and the National Assembly in the near future.

- Departments, Bureaus, and State Bank branches, while performing their inspection, supervision, and management functions of banking activities, if they discover difficulties and obstacles related to the implementation of regulatory legal documents, should report to the Governor to take appropriate adjustment measures.

- The Legal Department should cooperate with other Departments and Bureaus to concentrate on effectively carrying out the review and systematization of Vietnamese legal provisions concerning the banking sector with those in international treaties to which Vietnam is a party, especially provisions related to the banking sector in the Vietnam-U.S. Bilateral Trade Agreement.

3. Diversifying forms of legal dissemination and education.

- The Legal Affairs Department shall coordinate with relevant Departments and Bureaus to effectively carry out the work of reviewing and systematizing Vietnamese legal provisions on banking with those in international treaties to which Vietnam is a party, particularly the provisions related to the banking sector in the Bilateral Trade Agreement between Vietnam and the United States.

3. Diversify forms of legal education and publicity.

The objectives of legal education and propaganda work are to help banking sector officials correctly and promptly grasp the Party's and State's policies and guidelines, directional guidance, and legal regulations concerning the banking sector. Legal education and propaganda work contribute to enhancing the legal awareness of officials and civil servants, thereby better serving management activities and compliance with legal regulations within the banking sector.

In 2002, continue to propagate and implement the documents of the Ninth National Congress of the Communist Party of Vietnam; the Resolution of the National Assembly on amending and supplementing the 1992 Constitution, laws on state administrative organization (amended); focus on propagating to support the election of National Assembly deputies; disseminate and implement laws on enterprises, international economic integration, and the Vietnam-U.S. Bilateral Trade Agreement. The Governor of the State Bank of Vietnam requests:

- The Legal Affairs Department shall carry out legal education and propaganda work for State Bank of Vietnam officials and civil servants. Heads of Departments, Bureaus, and Branch Directors of the State Bank of Vietnam are responsible for implementing legal education and propaganda work as well as supervising compliance with legal regulations within their units regarding thrift practices, waste prevention, anti-corruption measures, and democratic regulations in agencies...

- Party organizations and mass organizations such as the Youth Union, Trade Union, and Women's Office under the State Bank of Vietnam shall continue to implement legal education and propaganda work through various forms, diversifying legal education and propaganda activities to reach members.

- The Legal Affairs Department and relevant Departments and Bureaus shall cooperate with the Banking Times, Banking Magazine, and the Propaganda-Journalism Center to promptly publish new legal documents in the banking sector's media channels, widely publicize the Vietnam-U.S. Bilateral Trade Agreement related to the banking sector.

4. Enhance the quality of legal advisory work.

Further enhance the role of legal advisory work to ensure effective advisory functions for the leadership of the State Bank of Vietnam in managing and regulating banking activities through legal means, while also safeguarding the interests of the Vietnamese banking system when participating in the process of international economic integration. In 2002, the Governor of the State Bank of Vietnam requests:

- Departments and Bureaus under the State Bank of Vietnam and its branches have the responsibility to exchange and provide timely, accurate information reflecting any disputes or issues to coordinate in handling and resolving them to protect the legitimate rights and interests of the State and banking sector officials.

- Units assigned the task of negotiating and signing international treaties, contracts, or agreements with domestic and foreign partners must carefully study relevant legal provisions and international practices; the Legal Affairs Department should focus on providing legal advice to the Governor of the State Bank of Vietnam in this matter.

5. Coordinate training and capacity building to improve the qualifications of legal affairs staff.

To ensure the effective implementation of legal affairs work at the State Bank of Vietnam, greater attention should be given to the training and capacity building of legal affairs staff. The Organization and Training Department shall cooperate with the Legal Affairs Department to develop plans and programs for training and enhancing economic and legal knowledge for legal affairs staff to promptly grasp relevant international regulations and practices concerning banking activities, serving legal affairs in external activities, protecting the rights of the State Bank of Vietnam, and meeting the demands of international economic integration in the future.

Heads of Departments, Bureaus, and units under the State Bank of Vietnam, and Branch Directors of the State Bank of Vietnam are responsible for strictly implementing this Directive. If any difficulties arise during implementation, units shall report to the Governor of the State Bank of Vietnam for consideration and resolution.