Circular No. 19/2025/TT-NHNN on the network operation of microfinance

                   

CIRCULAR

Regulations on the network of operations of microfinance organizations

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12;

The Governor of the State Bank of Vietnam hereby promulgates this Circular amending and supplementing certain provisions of Circular No. 16/2021/TT-NHNN dated November 10, 2021 issued by the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling corporate bonds.

Pursuant to the Enterprise Law No. 76/2025/QH15;

Decree No. Government Decree No. 26/2025/NĐ-CP stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Credit Institution System Safety Department;

The Governor of the State Bank of Vietnam issues this Circular regulating the network of operations of microfinance organizations microfinance organizations.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates on:

1. Establishment, opening for operation, cessation of operation, dissolution of branches, transaction offices, representative offices, and non-business units of microfinance organizations.

2. Changing the name, location of the headquarters of branches, transaction offices, representative offices, and non-business units of microfinance organizations; changing the managing branch of transaction offices of microfinance organizations.

3. Notifying information about establishment, change of location, cessation of operation, dissolution of branches, transaction offices, representative offices, and related information to the business registration authority.

4. Opening, cessation of operation at transaction points of microfinance organizations.

Article 2. Applicability

1. Microfinance organization.

2. Organizations and individuals related to the network of operations of microfinance organizations.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. The network of operations of microfinance organizations includes branches, transaction offices, representative offices, and non-business units within the country.

2. A branch is a dependent unit of a microfinance organization, having a seal, and carrying out one or more activities according to internal regulations of the microfinance organization and laws.

3. A transaction office is a type of branch, a dependent unit of a microfinance organization, managed by a branch of the microfinance organization, having a seal, located at the operational area of the managing branch, with the task of performing one or more functions of the microfinance organization according to internal regulations of the microfinance organization and laws.

4. A transaction point is a subordinate part of a branch or transaction office of a microfinance organization, without a seal, and carrying out one or more activities as prescribed in Clause 2 of Article 5 of this Circular.

5. A representative office is a dependent unit of a microfinance organization, having a seal, performing the function of representation by proxy of the microfinance organization. A representative office shall not carry out business activities.

6. A non-business unit is a dependent unit of a microfinance organization, having a seal, carrying out one or more support activities for the business operations of the microfinance organization as prescribed in Article 6 of this Circular.

7. The request date is the day, month, year recorded on the document requesting the establishment of branches, transaction offices, representative offices, and non-business units of microfinance organizations.

8. Rural areas are administrative units' territorial boundaries excluding urban wards.

9. Head refers to the Branch Manager; Transaction Office Manager or equivalent positions (hereinafter referred to as Transaction Office Manager), Representative Office Director or equivalent position.

10. Information about the head includes full name, gender, date of birth, nationality, type of legal document, number of legal document, issuance date, issuing place, permanent address, and contact address.

11. Information about the name of the network unit includes name, foreign language name, abbreviation (if any).

12. Information about the address of the network unit includes address, telephone, fax, email, website (if any).

Article 4. Authority to approve the network of microfinance organizations

1. The authority of the Governor of the State Bank of Vietnam:

a) Approves the establishment of branches of microfinance organizations;

b) Forces the termination of operations and dissolution of branches of microfinance organizations;

c) Approves the contents regarding the operational network of microfinance organizations to implement restructuring plans for microfinance organizations under special supervision that have been approved based on the procedures and formalities stipulated in this Circular.

2. The authority of the Director of the Credit Institution Supervision Department:

a) Approves the establishment of transaction offices, representative offices, and non-profit units of microfinance organizations;

b) Forces the termination of operations and dissolution of transaction offices, representative offices, and non-profit units of microfinance organizations.

3. The authority of the Governor of the State Bank of Vietnam Regional Branch:

a) Approves changes in the location of branch headquarters and transaction offices of microfinance organizations within their jurisdiction, including cases where the change occurs before the commencement of operations;

b) Approves the voluntary termination of operations and dissolution of branches and transaction offices of microfinance organizations.

Article 5. Provisions on Transaction Points

1. Microfinance organizations decide and are responsible for opening and terminating operations at transaction points managed by branches and transaction offices within the scope of their operational area according to the regulations on managing activities at transaction points and the provisions of this Circular. The opening and termination of operations at transaction points must be reported to the People's Committee of the commune where the transaction point operates within five working days from the date the microfinance organization decides to open or terminate operations at the transaction point.

Transaction points must ensure transaction safety and fund transfers. At the end of each business day, transaction points must transfer all documents, vouchers, and funds to the branch or transaction office where the transaction point is subordinate for accounting and storage.

2. Branches and transaction offices of microfinance organizations may only carry out one or more of the following activities at transaction points:

a) Studying, understanding, and introducing customers;

b) Advising and guiding the formation of customer savings and loan groups (hereinafter referred to as borrowing groups);

c) Advising and guiding customers about products, services, loan applications; receiving loan applications; disbursing and collecting debts for credit contracts signed between the branch or transaction office and customers;

đ) Paying mandatory savings and voluntary deposits of microfinance customers.

3. Within the first five working days of the first month of each quarter, microfinance organizations or branches of microfinance organizations send a notification letter listing transaction points through postal services or submit it directly to the State Bank of Vietnam Regional Branch where the branch of the microfinance organization is located. The notification letter listing transaction points must include at least the following contents:

a) A list of transaction points operating in the province or city up to the last working day of the previous quarter, including information about the name of the branch or transaction office responsible for managing the transaction point and the location where the transaction point operates;

b) A list of transaction points opened and terminated in the previous quarter.

Article 6. Content of Activities of Public Service Units

The public service unit of microfinance organizations shall carry out one or more support activities for the business operations of microfinance organizations, including:

1. Researching and proposing the application of technology for microfinance organizations.

2. Training and enhancing skills and techniques for managers, leaders of departments and staff of microfinance organizations.

3. Storing databases, collecting, and processing information to serve the business operations of microfinance organizations.

4. Other activities supporting the business operations of microfinance organizations in accordance with the provisions of the law.

Article 7. Operating Area, Branches, and Transaction Offices

1. Microfinance organization branches operate within the administrative area of the province or centrally-administered city where the branch's headquarters is located and provide loans to customers including:

a) Poor households, near-poor households, low-income households, individuals belonging to poor households, individuals belonging to near-poor households, and low-income individuals residing in the province or centrally-administered city where the branch's headquarters is located;

b) Very small enterprises operating in the province or centrally-administered city where the branch's headquarters is located;

c) Members of borrowing groups established within the province or centrally-administered city where the branch's headquarters is located.

2. Transaction offices operate within the operational area of the branch managing them.

3. The name of microfinance organization branches and transaction offices must comply with relevant legal regulations and be set as follows:

a) Branch Name: Full name of the Microfinance Organization - Branch (branch name);

b) Transaction Office Name: Full name of the Microfinance Organization - Branch (name of the branch managing the transaction office) - Transaction Office (transaction office name).

4. In cases where changes in administrative boundaries lead to changes in the operational areas of branches or transaction offices, or changes in the addresses of branch headquarters without resulting in changes in the locations of branch headquarters, microfinance organizations do not need to adjust their operational areas according to the provisions of Clause 1 and Clause 2 of this Article. Microfinance organizations must submit a notification letter to the State Bank Regional Branch (where the microfinance organization's branch or transaction office is located before the change in administrative boundaries takes effect) within five working days from the date the decision on changing administrative boundaries becomes effective.

Article 8. Number of Branches and Transaction Offices

1. The number of branches and transaction offices of microfinance organizations at the time of application for establishment must ensure:

03 billion VND x N + 1.5 billion VND x M1 + 01 billion VND x M2 < C

Where:

- C is the actual value of the charter capital of the microfinance organization determined by adding (subtracting) undistributed cumulative profits (unresolved cumulative losses) reflected in accounting books up to the nearest point in time to the application date.

- N is the number of branches already established and proposed to be established.

- M1 is the number of transaction offices already established and proposed to be established in non-rural areas.

- M2 is the number of transaction offices already established and proposed to be established in rural areas.

2. Determination of the location of branches and transaction offices already established and proposed to be established in the areas specified in Clause 1 of this Article is based on the administrative boundary area where the branch's headquarters is located or planned to be located at the time of application and at the time of approval.

a) Microfinance organizations that have been operating for less than 12 months from the date of opening operations to the application date may establish no more than two branches in one fiscal year;

b) Microfinance organizations that have been operating for 12 months or more from the date of opening operations to the application date may establish no more than three branches in one fiscal year.

4. The number of transaction offices managed by one branch is determined by the microfinance organization in accordance with each branch's management capacity but must ensure that one branch manages no more than five transaction offices.

1. Files must be prepared in Vietnamese. Documents within the file must be original copies or certified copies issued from the original register, notarized copies, or copies presented with the original for comparison. In cases where the person submitting the file submits a copy along with presenting the original for comparison, the person conducting the comparison must sign to confirm on the copy and bear responsibility for the accuracy of the copy compared to the original. Each file must include a list of documents.

2. The request and notification documents of microfinance organizations must be signed by the法定代表人或其授权的代表。如果是授权签署，文件中必须包含符合法律规定的形式的授权书。

3. The files of microfinance organizations shall be submitted to the State Bank of Vietnam (hereinafter referred to as the State Bank) or the State Bank's Branch in the Region through one of the following methods:

a) Submitting online through the National Public Service Portal or the State Bank's Public Service Portal (if available).

When submitting online through the National Public Service Portal or the State Bank of Vietnam's Public Service Portal (if available), electronic files must use digital signatures in accordance with the laws on administrative procedures in the electronic environment. The documents in the electronic file are scanned copies from the original (in PDF format). In case the National Public Service Portal or the State Bank of Vietnam's Public Service Portal encounters technical issues or errors that prevent the reception and exchange of electronic information, the declaration, submission, receipt, result delivery, information exchange, and feedback shall be conducted through postal services or directly at the One-Stop Service Department of the State Bank or the State Bank's Branch in the Region.

b) Submitting directly at the One-Stop Service Desk of the State Bank and the State Bank Regional Branches;

c) Sending through postal services.

Article 10. Regulations on the management of branches, transaction offices, and transaction points

1. Microfinance organizations must establish regulations on the management of branches and transaction offices, and regulations on the operation at transaction points to ensure safe, effective, and compliant operations with the law.

2. The regulations on the management of branches and transaction offices must be issued by the Board of Members of the microfinance organization and must include at least the following contents:

a) Transaction limits for each level of management at branches and transaction offices according to each product or group of products provided to customers;

b) Management, supervision mechanisms, and reporting systems between the headquarters and branches, and between transaction offices and branch-managed transaction offices;

c) Standards and conditions for the positions of Branch Manager and Transaction Office Manager in compliance with the law and ensuring sufficient professional competence and ethical standards to meet job requirements;

d) Provisions regarding cash vaults, fire prevention and extinguishing, money transfer, and document storage to ensure asset security and safety, including specific end-of-day cash reserve levels for branches and transaction offices based on actual operational conditions and security conditions. Excess end-of-day cash reserves beyond the specified limit must be deposited into the microfinance organization's bank account.

3. The regulations on the operation at transaction points must be issued by the General Director (Director) of the microfinance organization and must include at least the following contents:

a) Criteria for selecting transaction points suitable for operational characteristics, ensuring risk control, safety, and effectiveness during operations;

b) Procedures for opening and closing operations at transaction points, including the sequence, procedures, and authority to decide on opening and closing operations at transaction points, including delegation of decision-making authority (if applicable);

c) Scope of operations at transaction points, including specific transaction limits at each transaction point according to each product provided to customers;

d) Procedures for implementing transactions involving deposit and payment, receiving applications, disbursing funds, collecting loan repayments, and the rights and responsibilities of microfinance organization staff at transaction points;

đ) Measures to ensure personnel safety and security and safety in the process of transferring money, documents, and other assets during operations at transaction points.

4. Microfinance organizations must review the regulations stipulated in Clause 2 and Clause 3 of this Article at least once a year and amend and supplement them (if necessary) to ensure they are consistent with operations during each period.

Chapter II

ESTABLISHMENT OF BRANCHES, TRANSACTION OFFICES, REPRESENTATIVE OFFICES, AND ENTERPRISE UNITS

Section 1

CONDITIONS FOR ESTABLISHING BRANCHES, OPERATING UNITS, REPRESENTATIVE OFFICES, AND ENTERPRISE UNITS

1. Microfinance organizations that have been operating for at least twelve months from the date of opening operations to the time of requesting establishment must ensure the following conditions:

a) The actual paid-in capital value at December 31 of the year immediately preceding the year of request for establishment shall not be lower than the statutory capital requirement. The actual value of the paid-in capital is determined based on the audited financial statements of the year immediately preceding the year of request;

b) Operating with profit according to the audited financial statements of the year immediately preceding the year of request for establishment and according to the most recent financial statements up to the time of request;

c) Not being subject to measures by competent authorities prohibiting expansion of operational territory at the time of request;

d) Complying with regulations on safety ratios in microfinance organization operations as reported up to the most recent reporting period at the time of request;

đ) Properly and fully implementing regulations on asset classification, provisioning levels, risk reserve accrual methods, and the use of reserves to address risks in operations as prescribed by law for three consecutive months immediately preceding the time of request;

e) Non-performing loan ratio, as defined by the State Bank of Vietnam regarding asset classification, at December 31 of the year immediately preceding the year of request for establishment and at the end of the month immediately preceding the time of request, shall not exceed 03% or another ratio as decided by the Governor of the State Bank of Vietnam during each period; and the ratio of non-performing loan group 5 to total outstanding loans, as defined by the State Bank of Vietnam regarding asset classification, at the end of the month immediately preceding the time of request, shall not exceed 01% or another ratio as decided by the Governor of the State Bank of Vietnam during each period;

g) Tier 1 capital ratio to total assets at the end of the month immediately preceding the month of request shall be at least 10% or another ratio as decided by the Governor of the State Bank of Vietnam during each period;

h) Adhering to legal provisions on the number and structure of the Board of Members, Supervisory Board; not lacking a General Director (Director) at the time of request;

i) Having an internal control system and internal audit department ensuring compliance with Article 57, Article 58 of the Law on Credit Organizations and related legal provisions at the time of request;

k) Not having been administratively penalized for organizational, management, and operational violations (except for internal regulation violations); lending; safety ratios; asset classification, risk reserve accruals, and usage for risk resolution under laws on administrative penalties in the monetary and banking sectors within twelve months prior to the time of request;

l) Ensuring the establishment proposal complies with the contents stipulated in Clause 3, Article 14 of this Circular;

m) Ensuring the number of branches as prescribed in Article 8 of this Circular;

n) At the time of request, units within the network of the microfinance organization approved for establishment in the year immediately preceding the year of request have commenced operations.

2. Microfinance organizations that have been operating for less than twelve months from the date of opening operations to the time of requesting establishment must ensure the following conditions:

a) The actual paid-in capital value in the month immediately preceding the time of request shall not be lower than the statutory capital requirement;

b) Operating with profit up to the month immediately preceding the time of request;

c) Properly and fully implementing regulations on asset classification, provisioning levels, risk reserve accrual methods, and the use of reserves to address risks in operations as prescribed by law for three consecutive months immediately preceding the time of request (in cases where the microfinance organization has been operating for more than three months) or in the months immediately preceding the time of request (in cases where the microfinance organization has been operating for less than three months);

d) Non-performing loan ratio, as defined by the State Bank of Vietnam regarding asset classification, at the end of the month immediately preceding the time of request, shall not exceed 03% or another ratio as decided by the Governor of the State Bank of Vietnam during each period; and the ratio of non-performing loan group 5 to total outstanding loans, as defined by the State Bank of Vietnam regarding asset classification, at the end of the month immediately preceding the time of request, shall not exceed 01% or another ratio as decided by the Governor of the State Bank of Vietnam during each period;

đ) The provisions at points c, d, g, h, i, k, l, m, n of Clause 1 of this Article.

Article 12. Conditions for establishing a transaction office

2. Meeting the requirements regarding the number of transaction offices to be established as prescribed in Article 8 of this Circular.

3. The branch that intends to manage the transaction office must meet the following conditions:

a) Have a minimum operating period of twelve months from the opening date to the application date;

b) The non-performing loan ratio according to the State Bank's regulations on asset classification at December 31 of the preceding year and at the end of the month immediately preceding the application date shall not exceed 03% or another ratio as decided by the Governor of the State Bank during each period; and the ratio of group 5 loans to total outstanding loans according to the State Bank's regulations on asset classification at the end of the month immediately preceding the application date shall not exceed 01% or another ratio as decided by the Governor of the State Bank during each period;

c) Not having been administratively fined in the field of currency and banking through monetary penalties within the last 12 months prior to the application date.

Article 13. Conditions for establishing a representative office, a public service unit

1. Having operated for at least 12 months from the opening date to the application date.

Section 2

DOCUMENTS AND PROCEDURES FOR APPLICATION TO ESTABLISH A BRANCH, TRANSACTION OFFICE, REPRESENTATIVE OFFICE, PUBLIC SERVICE UNIT

1. A document from the microfinance organization requesting the State Bank to approve the establishment of a branch, transaction office, representative office, public service unit in accordance with the model prescribed in the Appendix attached to this Circular.

2. Resolution or Decision of the Board of Members on the establishment of a branch, transaction office, representative office, public service unit.

3. Proposal for establishing a branch, transaction office, which must include at least the following contents:

a) Full name in Vietnamese, abbreviated name in Vietnamese; proposed headquarter address (information up to commune level), activities of the branch, transaction office of the microfinance organization;

b) Organizational structure of the branch, transaction office; proposed key personnel (Branch Manager, Transaction Office Manager, accountant and other key positions as prescribed internally by the microfinance organization);

c) Name, headquarters address of the branch expected to manage the transaction office (in the case of establishing a transaction office);

d) Agreement document or Memorandum of Understanding between the microfinance organization and political-social organizations or local authorities regarding cooperation in lending through borrowing groups;

đ) Proposed business plan for the first three years of operation, including at least:

(i) Business environment analysis (opportunities, challenges);

(ii) Target customers and products to be provided;

(iii) Projected balance sheet, income statement, basis for formulating the plan and explanation of the feasibility of implementing the plan each year.

4. Proposal for establishing a representative office, public service unit, which must include at least the following contents:

a) Full name in Vietnamese, abbreviated name in Vietnamese; proposed headquarters address, activities of the representative office, public service unit of the microfinance organization;

b) Reason for establishment;

c) Proposed key personnel (Head of the representative office, public service unit, accountant and other key positions as prescribed internally by the microfinance organization);

d) Planned activities for the first year of operation.

5. Other documents proving compliance with the conditions for establishing a branch, transaction office, representative office, public service unit as prescribed in this Circular.

Article 15. Procedure for Approval to Establish Branches of Microfinance Organizations

1. Microfinance organizations shall prepare one set of documents in accordance with Article 14 of this Circular and submit it to the State Bank.

2. Within seven working days from the date of receipt of the documents specified in Clause 1 of this Article, the State Bank shall send a document to the microfinance organization confirming that the documents are complete and valid. In cases where the documents are incomplete or invalid, the State Bank shall send a document requesting the microfinance organization to supplement and perfect the documents.

The microfinance organization shall supplement and perfect the documents within a maximum period of sixty days from the date on which the State Bank sends a document requesting supplementation and perfection of the documents. If the documents are not supplemented and perfected within this period, the microfinance organization must resubmit the documents in accordance with Clause 1 of this Article for the State Bank to consider and approve.

3. Within seven working days from the date of receipt of complete and valid documents, the State Bank shall send a document to solicit opinions of the People's Committee of the province/city directly under the Central Government (hereinafter referred to as the Provincial People's Committee) and the State Bank branch in the region where the microfinance organization plans to establish its branch regarding the necessity of establishing or adding branches of the microfinance organization in the area.

6. Within twelve months from the date of issuance of the approval document by the State Bank as stipulated in Clause 5 of this Article, the microfinance organization must commence operations of the branch. If operations are not commenced beyond this period, the approval document shall become automatically void.

Article 16. Procedure for Approval to Establish Transaction Rooms, Representative Offices, and Non-Profit Units of Microfinance Organizations

1. Microfinance organizations shall prepare one set of documents corresponding to each type of network in accordance with Article 14 of this Circular and submit it to the Credit Institution Management and Supervision Department.

2. Within seven working days from the date of receipt of the documents specified in Clause 1 of this Article, the Credit Institution Management and Supervision Department shall send a document to the microfinance organization confirming that the documents are complete and valid; in cases where the documents are incomplete or invalid, the Credit Institution Management and Supervision Department shall send a document requesting the microfinance organization to supplement and perfect the documents.

The microfinance organization shall supplement and perfect the documents within a maximum period of sixty days from the date on which the Credit Institution Management and Supervision Department sends a document requesting supplementation and perfection of the documents. If the documents are not supplemented and perfected within this period, the microfinance organization must resubmit the documents in accordance with Clause 1 of this Article for the Credit Institution Management and Supervision Department to consider and approve.

3. Within seven working days from the date of receipt of complete and valid documents, the Credit Institution Management and Supervision Department shall send a document soliciting opinions of the State Bank branch in the region where the microfinance organization plans to establish its transaction room regarding:

a) The necessity of establishing or adding transaction rooms;

b) The areas planned to open transaction rooms;

5. Within twelve months from the date of issuance of the approval document for the establishment of transaction rooms, representative offices, or non-profit units by the Credit Institution Management and Supervision Department as stipulated in Clause 4 of this Article, the microfinance organization must commence operations of the transaction rooms, representative offices, or non-profit units. If operations are not commenced beyond this period, the approval document shall become automatically void.

Section 3

OPENING OF OPERATIONS AND ANNOUNCEMENT OF INFORMATION ON ESTABLISHMENT

Article 17. Commencement of Operations

a) Having published information in accordance with Article 18 of this Circular;

b) Possessing or legally using the headquarters of the branch or transaction office. The headquarters must meet safety conditions for assets and be suitable for the operational requirements of the branch or transaction office;

c) The branch headquarters must have a cash storage facility that meets technical standards as prescribed by the State Bank. Transaction offices must have a secure safe in accordance with internal regulations of the microfinance organization;

d) Having an information technology system connecting the main headquarters with branches and transaction offices, and between managing branches and transaction offices, ensuring security, confidentiality, and reporting and statistical requirements;

đ) Having sufficient key personnel, including: Branch Manager, Transaction Office Manager, accounting staff, and other key positions as prescribed by the internal regulations of the microfinance organization. These Managers may not concurrently hold positions as Managers of other branches or transaction offices, and the Branch Manager may not concurrently hold the position of Transaction Office Manager;

e) The Branch Manager must meet the qualifications and conditions as prescribed by the Governor of the State Bank and the internal regulations of the microfinance organization. The Transaction Office Manager must meet the qualifications and conditions for the Branch Manager as prescribed by the Governor of the State Bank and the internal regulations of the microfinance organization;

g) Having a regulation on branch and transaction office management that meets the requirements stipulated in Clause 2, Article 10 of this Circular;

2. Microfinance organizations shall commence operations of representative offices and non-profit units upon meeting the following requirements:

a) Possessing or legally using the headquarters of the representative office or non-profit unit;

b) Having key personnel as prescribed by the internal regulations of the microfinance organization;

a) Regulation on branch and transaction office management as prescribed in Article 10 of this Circular in the case of commencing a branch or transaction office;

b) A notification document containing the following information:

(i) The planned commencement date;

(ii) Compliance with the commencement operation requirements stipulated in Clause 1 and Clause 2 of this Article;

(iii) Information about the head, name, and address of the branch, transaction office, representative office, or non-profit unit;

Article 18. Publicizing Information on the Establishment of Branches, Transaction Offices, Representative Offices, and Non-Profit Units

a) The number, date, and content of approval in the State Bank's approval document regarding the establishment of branches, transaction offices, representative offices, or non-profit units;

b) Name, location, expected date of commencement of operations, and other relevant information (if necessary).

2. Microfinance organizations must publicize the information specified in Clause 1 of this Article on:

a) The electronic information website of the microfinance organization (if available), and the headquarters of the branch, transaction office, representative office, or non-profit unit related to the microfinance organization;

b) The State Bank of Vietnam's electronic portal;

c) One printed newspaper in three consecutive issues or on one online newspaper in Vietnam.

Chapter III ALTERATION OF THE NAME, LOCATION OF BRANCH HEADQUARTERS AND TRANSACTION ROOMS; CHANGE IN BRANCH MANAGEMENT OF TRANSACTION ROOMS

Article 19. Alteration of Branch and Transaction Room Names

1. Microfinance organizations decide to change the names of branches and transaction rooms in accordance with the provisions of the law and this Circular.

2. Microfinance organizations must notify the State Bank of Vietnam branch in the region where the branch headquarters or transaction room is located about the change in information regarding the name of domestic branches and transaction rooms within five working days from the date of the decision to change.

Article 20. Alteration of Location of Branch Headquarters and Transaction Rooms

2. Microfinance organizations are not allowed to change the location of branch headquarters and transaction rooms from rural areas to non-rural areas except in cases of administrative boundary changes. The determination of whether a branch or transaction room is located in a rural area is based on the administrative boundary at the time of the request for location change and at the time of approval.

3. Documents for Requesting Alteration of Location of Branch Headquarters and Transaction Rooms:

a) A document from the microfinance organization requesting approval for the alteration of the location of branch headquarters and transaction rooms, which must minimally include the following contents: current location, proposed new location, reasons for relocation, plan to ensure continuity of operations during the relocation process;

b) Resolution or Decision of the Board of Members regarding the alteration of the location of branch headquarters and transaction rooms.

4. Procedure for Approving Alteration of Location of Branch Headquarters and Transaction Rooms:

a) The microfinance organization prepares one set of documents in accordance with Clause 3 of this Article and submits it to the State Bank of Vietnam branch in the region where the branch headquarters or transaction room is located. If the documents are incomplete or invalid, within five working days from the date of receipt of the documents, the State Bank of Vietnam branch in the region will issue a document requesting the microfinance organization to supplement and complete the documents.

The microfinance organization must supplement and complete the documents within a maximum period of thirty days from the date the State Bank of Vietnam branch in the region issues a document requesting supplementation and completion of the documents. If the documents are not supplemented and completed within this period, the microfinance organization must return the documents in accordance with Clause 3 of this Article for the State Bank of Vietnam branch in the region to review and approve;

Article 21. Changing the name, location of the representative office headquarters, and public service unit

1. Microfinance organizations decide to change the name, location of the representative office headquarters, and public service unit in accordance with the provisions of the law.

2. Microfinance organizations must notify the State Bank branch in the region where the representative office headquarters and public service unit are located about the change in name and location within five working days from the date of the decision to change the name and location of the representative office headquarters and public service unit.

In case the location of the representative office headquarters and public service unit changes to a different province or centrally governed city, microfinance organizations must notify the State Bank branch in the region where the previous representative office headquarters and public service unit were located, as well as the new location, in writing before the change.

Article 22. Changing the branch managing the transaction office

1. Microfinance organizations decide on changing the branch managing the transaction room. The branch expected to manage the transaction room must meet the conditions stipulated in Clause 3, Article 12 of this Circular.

2. Within five working days from the date of the decision to change the branch managing the transaction room, microfinance organizations must notify the State Bank branch in the region where the branch receiving management of the transaction room is located, detailing how the conditions for the branch managing the transaction room comply with the provisions of Clause 3, Article 12 of this Circular.

3. Within five working days from the date of receipt of the notification from the microfinance organization regarding the change in the branch managing the transaction room, the State Bank branch in the region where the branch receiving management of the transaction room is located must inspect and require the microfinance organization not to change the branch managing the transaction room if the branch receiving management does not meet the conditions stipulated in this Circular.

Article 23. Announcing Information on Changed Contents

1. Within seven working days from the date of receipt of the approval document from the State Bank branch in the region according to point b, Clause 4, Article 20 of this Circular, the microfinance organization must publish the following information:

a) The number, date, and content of the approval document from the State Bank regarding the change in the location of the branch headquarters and transaction room;

b) Name, location, expected date of operation at the new location, and other information (if necessary).

2. Microfinance organizations must publicize the information specified in Clause 1 of this Article on:

a) The electronic information website of the microfinance organization (if available), the headquarters of the branch, and the transaction room related to the microfinance organization;

b) The State Bank of Vietnam's electronic portal;

c) One printed newspaper in three consecutive issues or on one online newspaper in Vietnam.

3. Within seven working days from the date of implementation of the change as prescribed in Clause 4, Article 7, Article 19, Article 21, and Article 22 of this Circular, the microfinance organization must publish the decision of the microfinance organization regarding these changes on the electronic information website of the microfinance organization (if available) and the headquarters of the branch and transaction room related to the microfinance organization.

Chapter IV

TERMINATION OF OPERATIONS AND LIQUIDATION OF BRANCHES, TRANSACTION ROOMS, REPRESENTATIVE OFFICES, AND PUBLIC SERVICE UNITS

Article 24. Termination of operations and liquidation of branches, transaction rooms, representative offices, and public service units

1. Branches, transaction offices, representative offices, and affiliated units shall terminate operations and be dissolved in the following cases:

a) Automatic termination of operations and liquidation;

b) Voluntary termination of operations and liquidation;

c) Compulsory termination of operations and liquidation.

2. Microfinance organizations are responsible for:

a) Settling assets, rights, obligations, and related interests of branches, transaction rooms, representative offices, and public service units that cease operations and are liquidated in accordance with the law;

b) Storing documents, records, and files of branches, transaction offices, representative offices, and affiliated units that have ceased operations and been dissolved, as well as documents related to the termination of operations and dissolution;

c) Implementing legal procedures to terminate operations and dissolve branches, transaction offices, representative offices, and affiliated units in accordance with the provisions of the law.

Article 25. Automatic cessation of operations and dissolution of branches, representative offices, transaction rooms, and affiliated units

Clause 1. Branches, representative offices, transaction rooms, and affiliated units shall automatically cease operations and be dissolved when the microfinance organization ceases operations and dissolves.

Clause 2. The procedures for automatic cessation of operations and dissolution of branches, representative offices, transaction rooms, and affiliated units shall be carried out in accordance with the provisions of the law on the cessation of operations and dissolution of microfinance organizations.

Article 26. Voluntary cessation of operations and dissolution of branches, representative offices, transaction rooms, and affiliated units

1. Documents for voluntary termination of operations and dissolution of branches, transaction offices:

Point a) A document from the microfinance organization proposing the cessation of operations and dissolution of branches and transaction rooms, specifying the reasons for cessation of operations and dissolution, the name and address of the branch or transaction room to be ceased and dissolved, and the commitment to resolve assets, rights, obligations, and related interests of the branch or transaction room to be ceased and dissolved;

Point b) Resolution or Decision of the Board of Members of the microfinance organization regarding the cessation of operations and dissolution of branches and transaction rooms;

Point c) Plan for resolving assets, rights, obligations, and related interests of branches and transaction rooms to be ceased and dissolved.

Clause 2. Procedure for approval of voluntary cessation of operations and dissolution of branches and transaction rooms:

Point a) The microfinance organization shall prepare one set of documents in accordance with Clause 1 of this Article and submit it to the State Bank of Vietnam Regional Branch where the branch or transaction room is located;

Clause 3. Within forty-five days from the date of receiving the approval document from the State Bank of Vietnam Regional Branch regarding the cessation of operations and dissolution of branches and transaction rooms, the microfinance organization must carry out legal procedures in accordance with the law to cease operations and dissolve branches and transaction rooms and submit a report in writing to the State Bank of Vietnam Regional Branch regarding the results of implementation and the date of cessation of operations and dissolution.

Clause 4. The microfinance organization decides on the voluntary cessation of operations and dissolution of representative offices and affiliated units. Within five working days from the date of decision to voluntarily cease operations and dissolve representative offices and affiliated units, the microfinance organization shall submit a written report to the State Bank of Vietnam Regional Branch where the representative office or affiliated unit is located, specifying the reasons, the date of cessation of operations and dissolution.

Article 27. Compulsory cessation of operations and dissolution of branches, representative offices, transaction rooms, and affiliated units

Clause 1. Branches, representative offices, transaction rooms, and affiliated units of microfinance organizations shall be compulsorily ceased and dissolved in the following cases:

Point a) Evidence proving that the application documents for establishing branches, representative offices, transaction rooms, and affiliated units contain false information leading to incorrect assessment of compliance with establishment conditions;

b) Changing the location of the branch headquarters or transaction room without written approval;

c) Operating outside the scope of activities permitted by law.

Clause 2. When discovering any of the cases stipulated in Clause 1 of this Article, the State Bank Inspectorate, or the State Bank Regional Branch where the branch, representative office, transaction room, or affiliated unit of the microfinance organization is located, shall submit a document to the Governor of the State Bank (for the case of cessation and dissolution of branches) or send it to the Credit Institution Management and Supervision Department (for the case of cessation and dissolution of transaction rooms, representative offices, and affiliated units) requesting the cessation of operations and dissolution of branches, transaction rooms, representative offices, and affiliated units of the microfinance organization, specifying the reasons for the request.

Clause 3. Within twenty days from the date of receipt of the document requesting the cessation of operations and dissolution of branches, transaction rooms, representative offices, and affiliated units in accordance with Clause 2 of this Article or during the supervision process when discovering the cases stipulated in Clause 1 of this Article, the Credit Institution Management and Supervision Department shall issue a document (for the case of cessation of operations of transaction rooms, representative offices, and affiliated units) or submit a document to the Governor of the State Bank (for the case of cessation of operations of branches) requiring the microfinance organization to cease operations and dissolve branches, transaction rooms, representative offices, and affiliated units.

Clause 4. Within ninety days from the date the State Bank issues a document requiring the microfinance organization to cease operations and dissolve branches, transaction rooms, representative offices, and affiliated units, the microfinance organization must complete the cessation of operations and dissolution of branches, transaction rooms, representative offices, and affiliated units and submit a report in writing to the State Bank (for the case of cessation of operations of branches) or the State Bank Regional Branch (for the case of cessation of operations of transaction rooms, representative offices, and affiliated units) regarding the results of implementation and the date of cessation of operations and dissolution.

Clause 5. Within twenty-four months from the date the State Bank issues a document requiring the microfinance organization to compulsorily cease operations and dissolve branches, the microfinance organization must have a plan to handle transaction points managed by such branches to ensure compliance with the provisions of this Circular.

Article 28. Announcing information on cessation of operations, dissolution of branches, transaction offices, representative offices, and public service units

1. Within seven working days from the date of cessation of operations or dissolution of branches, transaction offices, representative offices, and public service units (except for cases of automatic cessation of operations or dissolution pursuant to Article 25 of this Circular), microfinance organizations must announce the following information:

a) The name and address of the branch, transaction room, representative office, or service unit terminating operations and dissolving;

b) The date of cessation of operations or dissolution;

c) The responsibilities of the microfinance organization regarding assets, rights, obligations, and related interests of the branches, transaction offices, representative offices, and public service units that have ceased operations or been dissolved.

2. Microfinance organizations must announce the information stipulated in Clause 1 of this Article on:

a) The electronic information website of the microfinance organization (if available), the headquarters of the branch, and the transaction room related to the microfinance organization;

b) The State Bank of Vietnam's electronic portal;

c) One printed newspaper in three consecutive issues or on one online newspaper in Vietnam.

Chapter V

NOTIFICATION TO BUSINESS REGISTRATION AUTHORITIES

Article 29. Microfinance organizations provide information to the State Bank to notify the business registration authority

1. Within five working days from the date of decision to change the head, microfinance organizations are responsible for submitting a written report to the State Bank branch in the region where the branch, transaction office, or representative office is located.

2. Within five working days from the date of change in information about the head as prescribed in Clause 10 of Article 3 of this Circular, or changes in the address of branches, transaction offices, or representative offices as prescribed in Clause 12 of Article 3 of this Circular, microfinance organizations must send a written notification to the State Bank branch in the region where the branch, transaction office, or representative office is located.

Article 30. Notifying information to the business registration authority

1. Within five working days from the date of receipt of the document from the microfinance organization as prescribed in Clause 3 of Article 17 of this Circular, the State Bank branch in the region is responsible for issuing a written notice containing information about the head, the name, and the address of the branch, transaction office, or representative office along with the approval document for establishing the branch, transaction office, or representative office to the provincial business registration authority where the microfinance organization's branch, transaction office, or representative office is located.

2. Within five working days from the date of receipt of the document from the microfinance organization as prescribed in Clause 4 of Article 7, Clause 5 of Article 20, and Clause 2 of Article 21 of this Circular, the State Bank branch in the region is responsible for issuing a written notice regarding the change in the address of the branch, transaction office, or representative office along with the approval document for changing the location of the branch, transaction office to the provincial business registration authority where the microfinance organization's branch, transaction office is located.

3. Within five working days from the date of receipt of the document from the microfinance organization as prescribed in Article 19, Clause 2 of Article 21, and Article 29 of this Circular, the State Bank branch in the region is responsible for issuing a written notice regarding the change in information about the head and the name of the branch, transaction office, or representative office to the provincial business registration authority.

4. Within five working days from the date of receipt of the document from the microfinance organization as prescribed in Clause 3 and Clause 4 of Article 26, and Clause 4 of Article 27 of this Circular, the State Bank branch in the region is responsible for issuing a written notice accompanied by the report of the microfinance organization to the provincial business registration authority where the microfinance organization's branch, transaction office, or representative office is located.

Chapter VI

RESPONSIBILITIES OF UNITS

Article 31. Responsibilities of Microfinance Organizations

1. Shall be responsible under the law for the completeness and accuracy of the information and documents provided in the application dossier.

2. Timely notify the State Bank of Vietnam, the State Bank of Vietnam branch in the region where the branch, transaction office, representative office, or affiliated unit is located, of any changes related to meeting the conditions and requirements set forth in this Circular during the time the State Bank of Vietnam, the State Bank of Vietnam branch in the region where the branch, transaction office, or representative office is located, is reviewing the microfinance organization's application.

3. Submit a document to the State Bank of Vietnam to publish information as prescribed in point b, Clause 2, Article 18, point b, Clause 2, Article 23, and point b, Clause 2, Article 28 of this Circular.

4. Shall be responsible for the organization and operation of branches and transaction offices. Report to the State Bank of Vietnam branch in the region where the branch or transaction office is located on the handling of issues arising from the organization and operation of branches and transaction offices within its jurisdiction.

5. Regularly manage and supervise the activities of branches and transaction offices.

6. Implement other contents as prescribed in this Circular.

Article 32. Responsibilities of the State Bank of Vietnam Regional Branch

1. Shall be responsible to the Governor of the State Bank of Vietnam when implementing matters within their authority as prescribed in this Circular.

2. Receive applications, approve or disapprove according to the provisions of Articles 20 and 26 of this Circular for cases within the authority of the Director of the State Bank of Vietnam Regional Branch as stipulated in Clause 3, Article 4 of this Circular.

3. Manage, inspect, audit, and supervise the activities of branches, transaction offices, representative offices, and affiliated units of microfinance organizations within its jurisdiction, including inspections and audits according to plans or when it deems necessary to ensure compliance with requirements for opening operations, changing locations of branches and transaction offices after the microfinance organization has opened operations or changed the location of its branches and transaction offices.

4. Handle issues arising from the organization and operation of branches, transaction offices, representative offices, and affiliated units of microfinance organizations within its jurisdiction.

5. Within five working days from the date the State Bank of Vietnam Regional Branch issues a document approving according to its authority as stipulated in Clause 3, Article 4 of this Circular or from the date of receiving notifications or reports from microfinance organizations as prescribed in this Circular, the State Bank of Vietnam Regional Branch shall send a document to the State Bank of Vietnam informing about the following contents:

a) The opening of branches, transaction offices, representative offices, and affiliated units;

b) Changes in name and location of branch, transaction office, representative office, and affiliated unit headquarters;

c) Changes in the management of transaction offices;

d) Voluntary cessation of operations and dissolution of branches, transaction offices, representative offices, and affiliated units.

6. Implement other contents as prescribed in this Circular.

Article 33. Responsibilities of Units under the State Bank

1. Responsibilities of the Credit Institution Management and Supervision Department:

a) Be responsible before the Governor of the State Bank of Vietnam when implementing matters within their authority as prescribed in this Circular;

b) Serve as the focal point for receiving, examining, and submitting to the Governor of the State Bank of Vietnam for approval or disapproval according to the provisions of Articles 15 and 27 of this Circular for cases within the authority of the Governor of the State Bank of Vietnam as stipulated in Clause 1, Article 4 of this Circular;

c) Receive applications, approve or disapprove according to the provisions of Articles 16 and 27 of this Circular for cases within the authority of the Director of the Credit Institution Management and Supervision Department as stipulated in Clause 2, Article 4 of this Circular;

d) Serve as the focal point for examining and submitting to the Governor of the State Bank of Vietnam for handling issues arising from the establishment, cessation of operations, and dissolution of branches, transaction offices, representative offices, and affiliated units of microfinance organizations;

đ) Provide the approval document for establishing branches, transaction offices, and representative offices as prescribed in Articles 15 and 16 of this Circular to the State Bank of Vietnam Regional Branch where the microfinance organization intends to establish its branches, transaction offices, or representative offices to inform the business registration agency;

g) Receive reports and notifications from the State Bank of Vietnam Regional Branch and microfinance organizations as prescribed in Clause 4, Article 27, and Clause 5, Article 32 of this Circular.

2. Responsibilities of the unit managing the Electronic Information Portal: Within three working days from the date of receiving the request document from the microfinance organization, publish relevant information on the State Bank of Vietnam's Electronic Information Portal regarding the network of operations of the microfinance organization as prescribed in Articles 18, 23, and 28 of this Circular.

Chapter VII

IMPLEMENTING PROVISIONS

Article 34. Transitional Provisions

1. Microfinance organizations are not required to adjust the number of branches and transaction offices established before the effective date of this Circular. In case of newly establishing units within the network, they must comply with the provisions of this Circular.

2. Branch Directors and Transaction Office Directors of microfinance organizations appointed before the effective date of this Circular who do not meet the standards and conditions to hold such positions as prescribed by the Governor of the State Bank of Vietnam may continue to hold their positions until the end of their appointment term.

3. Branches and transaction offices that do not meet the requirements stipulated in point đ, Clause 1, Article 17 of this Circular must take measures to ensure compliance with the provisions of this Circular within six months from the effective date of this Circular.

Article 35. Effective Date

1. This Circular takes effect from September 15, 2025.

2. Circular No. 19/2019/TT-NHNN dated November 5, 2019, of the Governor of the State Bank of Vietnam concerning the network of operations of microfinance organizations shall cease to be effective from the date this Circular takes effect.

Article 36. Implementation Organization

The heads of units under the State Bank of Vietnam and microfinance organizations are responsible for implementing this Circular./.