The State Bank of Vietnam published an update on Vietnam’s National Assembly approving amendments to the Law on Credit Institutions, including changes to the framework for the State Bank of Vietnam’s special lending and for the seizure of collateral backing non-performing loans (NPLs). The amended law is set to take effect on 15 October 2025. The amendments provide that the Government will issue implementing guidance for the law and highlight the State Bank of Vietnam’s inspection, supervisory and enforcement mechanisms, as well as responsibilities for credit institutions, foreign bank branches and debt trading and recovery entities in collateral seizure. The special lending provisions are refined so that State Bank of Vietnam special loans apply to credit institutions facing mass withdrawals, severe liquidity stress or needing support to implement a recovery plan or a compulsory transfer plan, with the State Bank of Vietnam to seek approval from the competent authority before deciding on such lending when needs arise. On collateral seizure, conditions include that the collateral is not subject to a court case that has been accepted but not yet resolved or is under adjudication; for real estate collateral, a seizure notice must be posted at the commune-level People’s Committee before seizure. The amendments also add that seized collateral must meet Government-specified conditions and require relevant entities to publicly disclose information and adopt internal procedures governing seizure steps. To support implementation, the Government intends to develop a decree on conditions for NPL collateral that may be seized and will direct the State Bank of Vietnam and other agencies to issue further guidance and organise execution of the law.

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