With the long experiences and prestige in banking business in Vietnam, over the past years, Bank for Foreign Trade of Vietnam has become the most reliable partner of enterprises in all economic sectors providing various kinds of guarantees with simple and convenient procedures, competitive fees and highly skilful staff.
Types of guarantees:
- guaranty for loan borrowing
+ guaranty for domestic loan
+ guaranty for foreign loan
- guaranty for payment and standby credit;
- bid bond
- performance bond
- guaranty for product quality
- guaranty for repayment
- guaranty for warranty
- guaranty for maintenance
- guaranty for withholding amount of money
- other kinds of guaranty
Manners of guaranty:
- Guaranty is issued in letter/ telegraphic (telex, swift)
- Guaranty is issued in form of counter-guaranty or on the basis of counter-guaranty of other credit institutions.
- Advice of guaranty
- Confirmation of guaranty, or guaranty confirmation on drafts.
- Other manners of guaranty in accordance with the laws.
Requirements of guaranty
I- General requirements:
1- The customer shall have legally civil competence, civil behaviour and civil obligation in accordance with laws;
2- The customer shall have legal security for the guaranty in line with requirements of the bank;
II- Specified requirements:
1- In case of guaranty for loan borrowing, guaranty for payment/ standby credit and medium and long term guaranty: apart form the general requirements, the customer shall meet the following requirements:
- having creditworthiness in credit, guaranty and payment relations with credit institutions;
- having feasible and effective investment projects, manufacture/business plan;
- meeting requirements for borrowers as stipulated in Vietcombank Guideline on regulation on customer lending.
- In case of foreign loan, the customer shall follow regulations of the law on management and repayment of foreign loan.
2- Bid bond, performance bond, guaranty for product quality, guaranty for repayment, guaranty for warranty, guaranty for maintenance, guaranty for withholding amount of money and other kinds of guaranty: apart from general requirements, the Bank shall consider: the credit worthiness, financial ability, skill and experience, security or deposit for guaranty before deciding to issue guarantee.
3- For guaranty for drafts: the customer shall meet requirements of laws on commercial papers;
4- Customers as foreign economic organisations shall be allowed to invest, do business or bid in Vietnam in accordance with Vietnamese laws.
5- Customer has 100% cash-cover for the guaranty value and necessary costs, only general requirements are applied.
Security for guaranty:
Pursuant to the manufacture and business, financial ability and prestige of the customer, the Bank and the customer shall agree to apply or not apply security for loan. Kinds of security for loan include: cash-cover, mortgage, collateral, guaranty of the third party and other kinds as stipulated by the laws.
Fees of guaranty:
The fees shall be agreed by both parties, the maximum shall not exceed 2% per year of guaranteed amount, the minimum is VND 300.000. In addition, some other reasonable fees shall be paid under the written agreement between the two parties.
File of Application for guaranty: File of Application for guaranty of the customer includes:
I- General File:
1- Application for a guaranty (in form)
2- Documents showing legal competence, civil behaviour of the customer (residency register/ ID card... for customer as individual; enterprise’s legal file for customer as enterprise), authorisation of the representative (for customer as enterprise). The borrower or customer has been guaranteed successfully by the bank shall not provide the documents as stipulated in this part- except for changes such as: authorised capital supplement, changes in address, representative, line of business...then the customer shall lodge with documents related to such changes to the Bank for completing the file.
3- Documents concerning application for guaranty (if any).
II- Specified File:
1- In case of guaranty for loan borrowing, guaranty for payment/ standby credit and medium and long term guaranty: apart form the documents stipulated in General File, it is needed to supply: documents concerning projects, manufacture/business plan, deal to be guaranteed.
· For guaranty for repayment of foreign loan: apart from documents as mentioned above, it is needed to supply the followings:
- Documents allowing borrowing and making payment for foreign loan of the SBV in accordance with existing laws on Management of foreign loans and repayment.
- Plan of borrowing for foreign loan repayment has been approved by the relevant offices and SBV.
- Documents/papers showing the feasibility of the Plan of borrowing for foreign loan repayment.
- Contracts/agreements concerning borrowing for foreign loan repayment.
2- In case of Guaranty on the basis of counter-guaranty of another bank.
The file includes: telegraph/letter of the issuer of counter-guaranty (to be tested telex or singed by authorised signature) requesting to issue a guaranty; documents on modification of the guaranty (if any).
- Regulation on guaranty of the State Bank of Vietnam attached with Decision No. 283/2000/QD-NHNN14 dated 25Aug2000.
For further information, please contact:
- Guarantee Department-Operations Center,
Bank for Foreign Trade of Vietnam