On 1 September 2017, the Government of Vietnam issued new regulations on the registration and provision of information on asset based security measures (“registration of security measures”) known as Decree No. 102/2017/ND-CP (“Decree No. 102”). Decree No. 102 came into effect on 15 October 2017.
The objective of Decree No. 102 is to provide more clarity on the administrative procedures connected with the registration of security measures and to ultimately simplify the registration process for applicants.
Applicants will be happy to note that because Decree No. 102 standardises the process of registration of security measures, the Vietnamese security registration authorities may no longer request additional documentation other than those required by law.
The following security measures are subject to compulsory registration:
Other security transactions may be registered as requested by the relevant parties.
Below are some of the key highlights of Decree No. 102:
Security measures subject to compulsory registration under Decree No. 102 shall become valid at the time when the Registry enters the details of the registration into the register.
Conversely, where registration of security measures is optional, the registration becomes valid as soon as the details are entered into the database.
Applicants shall lodge an application for modification of registered secured measures in the following cases:
Note that where the collateral is an off-the plan property on land (including off-the-plan housing) which has already formed, the procedures for modification shall be initiated concurrently with those for certifying property ownership to the land use right certificate.
There shall be no change to the effective time of registration of a property mortgage arising out of a contract for sale and purchase of a residential house for the following modifications:
Security measures may be registered by any one of the following methods:
If you have any questions or require any additional information, please contact Trang Hoang or the ZICO Law Partner you usually deal with.
This alert is for general information only and is not a substitute for legal advice.