Directive No. 07/2001/CT-NHNN on expanding effective credit for enterprises in export processing zones and industrial parks.

DIRECTIVE

On expanding effective credit for enterprises

in export processing zones and industrial parks

In recent years, provinces and cities have attracted many foreign-invested enterprises and domestic enterprises to invest in production, business, and service projects in export processing zones and industrial parks, mainly located in key economic regions (Ho Chi Minh City, Hanoi, Hai Phong, Da Nang, Dong Nai, Binh Duong, etc.). The investment, production, and business activities of these enterprises have contributed to economic growth and job creation for workers.                       

Enterprises in export processing zones and industrial parks have a large demand for credit capital, but the relationship between credit organizations and enterprises is still limited; this situation is due to many reasons, primarily including: credit organizations are still limited in marketing capabilities and transaction styles, not actively approaching, lacking accurate information about enterprise operations; difficulties and obstacles in issuing land use right certificates and securing loans with the value of land use rights; localities and relevant ministries and sectors have not coordinated to study and promptly address issues related to mechanisms and policies concerning bank loans for enterprises.           

To expand banking credit commensurate with the needs, potential, and effectiveness of investment, production, and business activities of enterprises in export processing zones and industrial parks, the Governor of the State Bank of Vietnam requests credit organizations and provincial branches of the State Bank of Vietnam where there are export processing zones and industrial parks to implement the following actions:

1Credit organizations should urgently implement measures to expand effective credit for enterprises in export processing zones and industrial parks:          

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Training and improving the professional skills, management and business operation capabilities, applying modern credit techniques and banking services according to international practices for enterprises in export processing zones and industrial parks

b. Proactively and regularly approach enterprises to gather information on investment, production, business activities, credit capital needs, and provide specific explanations and guidance on credit mechanism regulations that enterprises are unclear about; evaluate and draw lessons from loan disbursement to enterprises at local branches. Based on this, credit organizations should balance their own capabilities to expand the scale of credit capital and diversify credit forms for enterprises (loans, guarantees, financial leasing, discounting, etc.).

ofExpanding the network of transactions in export processing zones and industrial parks to promptly address credit needs and provide high-quality banking services to enterprises.         

For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;Credit organizations shall consider and be responsible for decisions regarding lending to enterprises in export processing zones and industrial parks, including accepting guarantees from foreign individuals or organizations to lend to enterprises in these zones based on systematically studying current credit mechanisms, aligning with the actual needs of enterprises to comply with the mechanisms, identify and propose solutions to authorities to resolve issues in credit relations with enterprises; overcome the situation of incorrectly or rigidly applying government and State Bank regulations; some points regarding loan security are as follows:           

Accepting guarantees from foreign organizations or individuals to lend to enterprises: carried out according to the provisions of international treaties to which the Socialist Republic of Vietnam is a party; or, accepting letter of guarantee (L/G) from reputable financial institutions or banks in the international capital market; or, securing by assets, the parties involved shall carry out the guarantee according to point 3, section 1, section 2, chapter II of Circular No. 06/2000/TT-NHNN dated April 4, 2001 issued by the Governor of the State Bank of Vietnam.                      

Considering lending without asset collateral to foreign-invested enterprises suffering losses: carried out according to point 2.2, section II of Circular No. 10/2000/TT-NHNN dated August 31, 2000 issued by the Governor of the State Bank of Vietnam; accordingly, foreign-invested enterprises suffering losses within three years since starting operations in Vietnam may be considered for unsecured loans by credit organizations.      

Regarding the pledging or mortgaging of collateral by guarantors: carried out according to section 2 of Circular No. 06/2000/TT-NHNN dated April 4, 2000 issued by the Governor of the State Bank of Vietnam. Accordingly, guarantees accepted by credit organizations for customers' loans must be secured by assets, and the procedures for pledging or mortgaging assets or not pledging or mortgaging assets to secure the fulfillment of guarantee obligations are agreed upon between the credit organization and the guarantor.

Regarding holding collateral and documents on collateral: carried out according to point 2 of Joint Circular No. 12/2000/TTLT-NHNN-BTP-BTC-TCĐC dated November 22, 2000; for movable property with ownership certificates, enterprises hand over the original to the credit organization to hold and agree that the enterprise can retain and use the pledged property; for movable property such as machinery and equipment not installed or fixed to buildings or construction works, other properties not attached to land without ownership certificates currently being used for production and business, enterprises must provide proof of lawful ownership or management and use for state-owned enterprises, hand over the original to the credit organization to hold and agree that the enterprise can retain and use the pledged property.   

- The act of the Company constructing and operating industrial zones pledging and guaranteeing its assets with revenues from land lease contracts and service provision to enterprises within such zones: this is a property right arising from economic contracts, financial institutions accepting pledges and guarantees of these property rights according to point 1.1, section 2, chapter II of Circular No. 06/2000/TT-NHNN dated April 4, 2000 issued by the Governor of the State Bank of Vietnam.

- The certification by a notary public or authentication by the People's Committee at the competent level for loan guarantee contracts: carried out in accordance with point 7.1, section 2, chapter II of Circular No. 06/2000/TT-NHNN dated April 4, 2000; accordingly, certification or authentication for loan guarantee contracts is agreed upon by the parties; however, in cases where laws require certification or authentication, the parties must comply.

- Regarding the requirement of financial institutions for the Management Board of industrial zones to confirm documents for enterprises' loan procedures: current laws on lending and loan guarantees do not stipulate this procedure, causing inconvenience to enterprises; financial institutions should not request enterprises to implement it.

đCooperate with state agencies and local development funds to resolve difficulties related to mortgage procedures for land use rights and attached assets, and provide guarantees for projects borrowing capital under national policies promoting exports and domestic investment.     

2. Branches of the State Bank of Vietnam in provinces and cities with industrial zones and export processing zones:

a. Proactively and regularly coordinate with commercial bank branches and local state agencies to study actual situations, identify difficulties and obstacles related to credit relations with enterprises in industrial zones and export processing zones, to advise provincial and municipal People's Committees on solutions; simultaneously report and propose to the State Bank of Vietnam measures to address credit mechanism obstacles.

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. Conduct research and apply the experience of the State Bank of Vietnam Ho Chi Minh City branch in coordinating with local state agencies to support banking activities for enterprises in industrial zones and export processing zones.

3. Regarding difficulties in the loan guarantee mechanism and the handling of collateral for loans of enterprises in industrial zones and export processing zones: The State Bank of Vietnam is currently studying to submit to the Government for consideration to amend and supplement Decree No. 178/1999/NĐ-CP dated December 29, 1999 on loan guarantees of financial institutions in a manner consistent with actual conditions and newly issued legal documents, creating favorable conditions for financial institutions to fully and properly exercise their rights and responsibilities in providing credit to customers.     

4. This Directive takes effect from the date of signature.          

5. Heads of functional units under the State Bank of Vietnam, Directors of State Bank of Vietnam branches in provinces and cities, Chairmen of Credit Institutions Councils and General Directors (Directors) of credit institutions shall implement this Directive./.