Conditions for credit institutions and branches of foreign banks to implement the guarantee for organizations being non-residents:
- Being licensed by the State bank to business in and supply foreign currency services in international and domestic market, including guarantee operation in foreign currency;
- Not being fined for administrative violation on foreign currency management during 6 months before considering guarantee;
- Having internal regulation and risk administration in guarantee for non-resident persons; and
- Not violating regulation on report to the State bank on guarantee for non-resident persons.
Cases in which institutions and branches of foreign banks are permitted to implement the guarantee for organizations being non-residents:
- The guaranteed is enterprise established and operated overseas having contributed capital from Vietnamese enterprises under the form of overseas direct investment; or
- The party receiving the guarantee is resident; or
- The guaranteed makes a deposit of 100% of guarantee value; or
- Having a written consent of the SBV.
Guaranteed obligations. The credit institutions and branches of foreign banks may make guarantee for lawful obligations, for examples: obligation of paying principals, interest of loan and other expenditures relating to loan; obligation of payment for purchasing materials, goods, machines, equipment and expenditures of performing project or plan on investment, manufacture, business or life seivices; obligation of payment for tax, charge, other finance obligation for State, etc.
Use of language. Documents relating to guarantee transaction are made in Vietnamese. Foreign language may also be used in such documents provided that, in case of any difference between the Vietnamese and the foreign language version, the Vietnamese shall prevail.