Vietnam Issues Rules on Small-sized Financial Organisations

Vietnam Issues Rules on Small-sized Financial Organisations

Vietnam's social, political and trade organisations, charitable and social funds, and non-Governmental organisations are now allowed to establish small-sized financial organisations following a Prime Minister's decree issued on March 9.

The decree, which will take effect in 15 days, specifies that other domestic and foreign organisations and individuals can contribute capital to the above-mentioned financial organisations.

The decree, coded 28/2005/ND-CP, also contains detailed regulations on the licensing management and operation of small-sized financial organisations.

Accordingly, those small-sized financial organisations are allowed to provide simple financial services such as small-scaled depositing, lending, money transferring and insurance.