This Circular provides for the custody and use of valuable papers at the State Bank of Vietnam (hereinafter referred to as the State Bank).

1. Units affiliated to the State Bank.

2. Deposit Insurance of Vietnam (DIV), credit institutions, foreign bank branches and other organizations as decided by the Governor of the State Bank (hereinafter referred to as members).

1. Valuable papers are instruments evidencing the debt obligation of the issuer to the holder of the valuable papers within a specified term, with stipulated interest payment conditions and other conditions. Valuable papers include: valuable book-entry papers (in the form of accounting entries or electronic data) and certificated valuable papers (in the form of physical certificates).

2. Custody of valuable papers at the State Bank means the activity of accepting valuable papers for custody, safekeeping, transferring and exercising rights related to the ownership of valuable papers by members who directly hold valuable papers in custody at the State Bank or hold valuable papers in custody through the State Bank's client account at the Vietnam Securities Depository and Clearing Corporation (hereinafter referred to as VSDC), for the purpose of protecting the rights and interests related to the valuable papers of the owner and performing certain operations at the State Bank.

3. Transfer of valuable papers between parties in a transaction using valuable papers means the book transfer in respect of book-entry valuable papers or the physical handover, counting and recording in the accounting system in respect of certificated valuable papers. Transfer of valuable papers may or may not include the transfer of ownership of the valuable papers.

4. Proprietary account means an account opened by VSDC for a depository member of VSDC or an organization that directly opens an account at VSDC to manage valuable papers owned by that depository member or organization.

5. Client account means an account opened by VSDC for a customer of a depository member of VSDC to manage valuable papers owned by that customer.

6. State Bank's valuable papers accounts include the State Bank's valuable papers account under its management and the State Bank's valuable papers account held in custody at VSDC.

The State Bank's valuable papers account under its management is an internal account of the State Bank used to hold valuable papers owned by the State Bank in custody.

The State Bank's valuable papers account held in custody at VSDC is a proprietary account opened by VSDC at the request of the State Bank to hold in custody valuable papers owned by the State Bank.

7. State Bank's client account at VSDC means a client account opened by VSDC at the request of the State Bank to hold in custody valuable papers owned by members for the purpose of performing certain operations at the State Bank.

8. Members' custody accounts are accounts opened by the State Bank to monitor the custody of valuable papers of members. Members' custody accounts include: the account for valuable papers held directly in custody at the State Bank and the account for valuable papers held in custody through the State Bank's client account at VSDC.

The account for valuable papers held directly in custody at the State Bank is an account opened by the State Bank at the request of a member to hold in custody valuable papers issued by the State Bank and special bonds and bonds issued directly to credit institutions selling bad debts for the purpose of purchasing bad debts at market value by the Vietnam Asset Management Company (VAMC).

The account for valuable papers held in custody through the State Bank's client account at VSDC is an account opened by VSDC at the request of the State Bank to hold valuable papers of members at VSDC in custody.

9. Collateral account (for pledged valuable papers) is an internal account of the State Bank opened for a member to manage valuable papers subject to the member's pledge and margin deposit request when participating in certain money market operations.

10. Interbank credit collateral account is an internal account of the State Bank opened for a member to block valuable papers in secured lending transactions involving pledge of valuable papers between members on the interbank market.

1. Types of valuable papers include:

a) State Bank bills;

b) Government bonds;

c) Treasury bills (T-bills);

d) Bonds for with 100% of principal and interest at maturity is guaranteed by the Government;

dd) Local government bonds used in State Bank transactions as decided by the Governor of the State Bank from time to time;

e) Special bonds and bonds issued directly to credit institutions selling bad debts for the purpose of purchasing bad debts at market value by the Vietnam Asset Management Company (VAMC);

g) Bonds issued by commercial banks in which the State holds more than 50% of charter capital;

h) Bonds issued by credit institutions not under special control (except for commercial banks referred to in point g of this clause) and bonds issued by other enterprises;

i) Other types of valuable papers as decided by the Governor of the State Bank from time to time.

2. Conditions for valuable papers:

a) Legally owned by the member;

b) Of a type of valuable papers as prescribed in clause 1 of this Article;

c) The record date or the date for determining the list of holders for the purpose of receiving principal and interest in accordance with applicable laws or the issuer's regulations has not yet been reached;

d) Certificated valuable papers held in custody at the State Bank must be intact, not torn, damaged, discolored, faded in pattern, text or numbers, and must not be creased, dirty, stained or altered.

3. Face value of valuable papers:

The face value of valuable papers held in custody at the State Bank is VND 100,000 (one hundred thousand Vietnamese dong) or a multiple thereof.

For special valuable papers directly managed by the State Bank and foreign currency-denominated valuable papers, the face value shall be in accordance with applicable laws for each type of valuable papers.

4. Codes of valuable papers:

Valuable papers held in custody at the State Bank are managed under a coding system established by VSDC and the State Bank (Transaction Office). The State Bank manages valuable papers uniformly under the International Securities Identification Number (ISIN) system where necessary.

1. Valuable papers are used in money market operations including:

a) Open market operations (OMO);

b) Refinancing operations:

- Secured lending by the State Bank to credit institutions and foreign bank branches on the basis of pledge of valuable papers;

- Discounting of valuable papers by the State Bank in respect of credit institutions and foreign bank branches;

- Other forms of refinancing as provided by the State Bank;

c) Pledge of valuable papers to establish overdraft facilities and overnight credit limits in the Interbank Electronic Payment System (IBPS);

d) Pledge and margin deposit of valuable papers to establish net debit caps in the Interbank Electronic Payment System (IBPS);

dd) Pledge and margin deposit of valuable papers to establish aggregate settlement limits;

e) Pledge and margin deposit of valuable papers to establish electronic clearing limits through the Electronic Clearing System;

g) Pledge and margin deposit of valuable papers for other operations as decided by the Governor of the State Bank from time to time.

2. Valuable papers are used in special loans by the State Bank to credit institutions.

3. Transactions in valuable papers held in custody at the State Bank between members include:

a) Secured lending involving pledge of valuable papers between members;

b) Purchase and sale of valuable papers between members.

4. The State Bank shall receive applications and supporting documents for processing requests to use valuable papers held in custody at the State Bank no later than 3:30 p.m. on a working day. Requests received after this time shall be processed on the next working day. Where it is necessary to extend the document reception time, the State Bank shall coordinate with the member to agree on the reception time for that working day.

1. Application documents

To hold valuable papers in custody at the State Bank, members referred to in clause 2 Article 2 of this Circular shall prepare and submit directly or by postal service to the head office of the State Bank (single window division) or submit online via the National Public Service Portal one application comprising:

a) An application for opening a custody account for valuable papers using Form No. 01a in the Appendix attached to this Circular, together with a specimen seal and signature registration form for the custody account for valuable papers at the State Bank using Form No. 01b in the Appendix attached to this Circular;

b) Documents evidencing the lawful establishment and operation of the member opening the custody account for valuable papers, including: charter; establishment and operation license, enterprise registration certificate or equivalent documents as required by law;

c) Documents evidencing the legal representative capacity of the legal representative of the member opening the account (a State Bank written approval of the proposed personnel list, a written appointment or decision of appointment), together with a valid national identity card, citizen identity card or passport of such person;

d) Written appointment or decision of appointment and a valid national identity card, citizen identity card or passport of the chief accountant or acting chief accountant and the person authorized to verify transaction documents with the State Bank;

dd) Where the legal representative or the chief accountant authorizes another person (including sub-delegation, if any), the member opening the custody account must provide the written appointment or decision of appointment of the authorized person and the power of attorney (reference content as per Form No. 07 in the Appendix attached to this Circular), together with a valid national identity card, citizen identity card or passport of the authorized person. A task-specific power of attorney granted by the chief accountant must bear the confirming signature of the legal representative of the member opening the custody account for valuable papers at the State Bank.

2. Form and validity of documents in the application for opening a custody account for valuable papers

a) In case of direct submission or submission by postal service:

The application components referred to in point a clause 1 of this Article shall be originals signed and sealed by the legal representative of the member opening the custody account for valuable papers; the application components referred to in points b, c, d and dd of clause 1 of this Article shall be copies certified from the original register, notarized copies, copies presented together with the originals for comparison, or electronically certified copies made from the originals. Where documents in the application are in a foreign language, they must be translated into Vietnamese and notarized or certified in accordance with applicable law.

b) In case of online submission via the National Public Service Portal:

The member shall complete an electronic application as required by the online public service system.

The application for opening a custody account for valuable papers using Form No. 01a referred to in point a clause 1 of this Article must be prepared as a data message and digitally signed by the legal representative of the member in accordance with applicable laws on electronic transactions.

The specimen seal and signature registration form using Form No. 01b referred to in point a clause 1 of this Article and the application components referred to in points b, c, d and dd of clause 1 of this Article shall be submitted as valid electronic copies.

A valid electronic copy means a data message created or converted from a paper document in accordance with applicable laws on electronic transactions, which ensures the integrity of information and can be accessed and used for reference when necessary.

3. Use of information and data to replace application components

Members are not required to provide the documents referred to in points b, c, d and dd of clause 1 of this Article where the member has already provided them to the State Bank (Transaction Office) when opening and using a payment account at the State Bank.

The State Bank shall use information already available in the National Enterprise Registration Database to replace the enterprise registration certificate component; use information in the National Population Database and the National Database on Exit and Entry of Vietnamese Citizens to replace the national identity card, citizen identity card or valid passport component; and shall also use information in sector-specific databases and information systems managed by the State Bank to replace application components relating to the establishment, organization, personnel and operations of the member that have been issued, approved or managed by the State Bank in accordance with applicable law.

4. Within 2 working days from the date of receipt of a complete and valid application for opening a custody account for valuable papers from a member, the State Bank (Transaction Office) shall open the custody account for valuable papers.

Where a member's application for opening a custody account for valuable papers is incomplete or invalid, the State Bank (Transaction Office) shall notify the member to complete the application; where the State Bank (Transaction Office) refuses to open the custody account for valuable papers, it shall notify the member of the reasons.

5. The State Bank (Transaction Office) shall notify the member of the opening of the custody account for valuable papers through online means; where the member so requests, the State Bank (Transaction Office) shall send a paper notification by postal service or deliver it in person at the State Bank's single window division.

1. Where there are changes to information on a member's custody account for valuable papers relating to the documents in the account opening application referred to in clause 1 Article 6 of this Circular, within 15 working days from the date of the change, the member must notify the State Bank (Transaction Office) and submit the relevant application documents and legal papers, including:

a) A notification of changes to information on the custody account for valuable papers opened at the State Bank using Form No. 01c in the Appendix attached to this Circular;

b) A specimen seal and signature registration form for the custody account for valuable papers at the State Bank using Form No. 01b in the Appendix attached to this Circular;

c) The documents referred to in points b, c, d and dd of clause 1 Article 6.

2. The documents referred to in points a and b of clause 1 of this Article shall be originally signed and sealed by the legal representative of the member opening the custody account for valuable papers. The documents referred to in point c of clause 1 of this Article shall be copies certified from the original register, notarized copies, copies presented together with the originals for comparison, or electronically certified copies made from the originals. Where documents in the application for updating account information are in a foreign language, they must be translated into Vietnamese and notarized or certified in accordance with applicable law.

3. The State Bank shall use information already available in the National Enterprise Registration Database to replace the enterprise registration certificate component; use information in the National Population Database and the National Database on Exit and Entry of Vietnamese Citizens to replace the national identity card, citizen identity card or valid passport component; and shall also use information in sector-specific databases and information systems managed by the State Bank to replace application components relating to the establishment, organization, personnel and operations of the member that have been issued, approved or managed by the State Bank in accordance with applicable law.

1. Book-entry valuable papers held directly in custody at the State Bank

a) Where a member holds in custody valuable papers on the list of valuable papers currently managed at the State Bank:

The member shall send to the State Bank (Transaction Office) an application for custody of valuable papers using Form No. 02a in the Appendix attached to this Circular and any relevant supporting documents (if applicable). Within 1 working day from the date of receipt of the member's application for custody of valuable papers, the State Bank (Transaction Office) shall transfer the valuable papers into the member's custody account held directly at the State Bank.

b) Where a member is successful in the tender for purchase of valuable papers in trading sessions organized by the State Bank, the State Bank (Transaction Office) shall transfer the tendered valuable papers into the member's custody account held directly at the State Bank.

2. Book-entry valuable papers held in custody at VSDC

a) Where a member wishes to hold valuable papers in custody at the State Bank, the member shall transfer the valuable papers from its custody account at VSDC to the State Bank's client account at VSDC. Upon receipt of VSDC's notification of the transfer of the members’ valuable papers held in custody, the State Bank shall make accounting entries for such changes in the members' custody account;

b) Where a member is successful in the tender for purchase of valuable papers in trading sessions in which the State Bank acts as the issuance agent, or where the State Bank sells valuable papers, the State Bank shall send the tender information to VSDC for VSDC to record the custody of the valuable papers.

3. Certificated valuable papers

a) Valuable papers issued by the State Bank:

The member shall send to the State Bank (Transaction Office) an application for custody of valuable papers using Form No. 02a in the Appendix attached to this Circular together with all certificated valuable papers. Within 1 working day from the date of completion of receipt, counting and verification of the validity and legality of the valuable papers, the State Bank (Transaction Office) shall complete the procedures for holding the valuable papers in custody in the member's custody account held directly at the State Bank.

b) Valuable papers not issued by the State Bank:

The member shall complete the procedures for holding certificated valuable papers in custody in its custody account at VSDC in accordance with applicable laws on registration and custody of securities and VSDC's regulations.

After completing the custody of the valuable papers in its custody account at VSDC, the member shall follow the procedures for transferring the valuable papers into the State Bank's client account at VSDC as applicable to book-entry valuable papers under point a clause 2 of this Article.

1. For valuable papers held directly in custody at the State Bank, the State Bank (Transaction Office) shall transfer ownership of valuable papers on the transaction date, in accordance with the following principles:

a) Where the State Bank is the purchasing party or the party receiving valuable papers upon enforcement of collateral, the valuable papers shall be transferred from the member's custody account held directly at the State Bank or from the member's collateral account to the State Bank's valuable papers account;

b) Where the State Bank is the selling party, the valuable papers shall be transferred from the State Bank's valuable papers account to the member's custody account held directly at the State Bank;

c) Upon enforcement of pledge collateral in a secured lending transaction involving pledge of valuable papers between members on the interbank market, the valuable papers shall be transferred from the pledging party's interbank credit collateral account to the pledgee's custody account held directly at the State Bank.

2. For valuable papers held in custody through the State Bank's client account at VSDC, the transfer of ownership of valuable papers shall be performed by VSDC in accordance with applicable securities laws and the agreement between the State Bank (Transaction Office) and VSDC, in accordance with the following principles:

a) Where the State Bank is the purchasing party or the party receiving valuable papers upon enforcement of collateral, the valuable papers shall be transferred from the member's custody account through the State Bank's client account at VSDC to the State Bank's valuable papers account held in custody at VSDC;

b) Where the State Bank is the selling party, the valuable papers shall be transferred from the State Bank's valuable papers account held in custody at VSDC to the member's custody account through the State Bank's client account at VSDC;

c) Upon enforcement of pledge collateral in a secured lending transaction involving pledge of valuable papers between members on the interbank market, the valuable papers shall be transferred from the pledging party to the pledgee within the State Bank's client account at VSDC.

3. The State Bank shall transfer ownership of valuable papers pursuant to the purchase and sale agreement or the tender result notification in open-market operations, on behalf of the member. For discounting operations, pledge and margin deposit of valuable papers, other forms of refinancing on the basis of pledge of valuable papers and purchase and sale of valuable papers between members, the transfer of ownership of valuable papers shall be carried out in accordance with Articles 14, 15, 16, 17 and 18 of this Circular.

4. The State Bank (Transaction Office) shall transfer ownership of valuable papers in the event of a division or merger of a credit institution at the request of the member who is the owner of the valuable papers, on the basis of an application for transfer of ownership of valuable papers using Form No. 05 in the Appendix attached to this Circular, together with the State Bank's written approval of the division or merger of the credit institution and any relevant documents (if applicable).

A credit institution that is split, consolidated, dissolved or declared bankrupt must withdraw its valuable papers in accordance with Article 11 of this Circular and close its custody account for valuable papers at the State Bank in accordance with Article 12 of this Circular before ceasing to exist. The State Bank (Transaction Office) shall transfer ownership of valuable papers pursuant to the application for transfer of ownership of valuable papers using Form No. 05 in the Appendix attached to this Circular and the State Bank's written approval of the split, consolidation or dissolution of the credit institution, or the People's Court's decision declaring the credit institution bankrupt, and any relevant documents (if applicable).

1. Valuable papers held directly in custody at the State Bank

a) Book-entry valuable papers:

Upon maturity of the valuable papers, the State Bank (Transaction Office) shall verify the completion of the member's obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank shall process payment of principal and interest to the member. Where the member has not yet fulfilled its obligations, the provisions of clause 4 of this Article shall apply;

b) Certificated valuable papers:

When certificated valuable papers reach their maturity date, the member shall request withdrawal of the valuable papers in accordance with Article 11 of this Circular. The State Bank (Transaction Office) shall verify the completion of the members’ obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank shall return the valuable papers so that the member can complete payment procedures at the issuer or the issuer's agent. Where the member has not yet fulfilled its obligations, the provisions of clause 4 of this Article shall apply.

2. Valuable papers held in custody at the State Bank's client account at VSDC

a) When interest payment is due on valuable papers paying periodic interest, the State Bank (Transaction Office) shall verify the completion of the member's obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank (Transaction Office) shall confirm its approval of the information in the list of bondholders holding valuable papers in the State Bank's client account at VSDC on VSDC's system, so that VSDC can process interest payment to the member. Where the member has not yet fulfilled its obligations, the provisions of clause 4 of this Article shall apply;

b) When the valuable papers reach their maturity date, the State Bank (Transaction Office) shall verify the completion of the members’ obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank (Transaction Office) shall send VSDC a notification confirming that the relevant valuable papers of the member in the State Bank's client account at VSDC are eligible for principal and interest payment, so that VSDC can process payment to the member. Where the member has not yet fulfilled its obligations, the provisions of clause 4 of this Article shall apply;

c) Payment of principal and interest on valuable papers held in custody at the State Bank's client account at VSDC shall be carried out in accordance with the agreement between the State Bank (Transaction Office) and VSDC.

3. Interest and other income (if any) from valuable papers during the period of transfer of ownership from the selling party to the purchasing party in term transactions on the money market shall be handled in accordance with State Bank regulations.

4. Where a member has not yet fulfilled its obligations to the State Bank:

a) For valuable papers issued by the State Bank and currently held in custody at the State Bank, the State Bank (Transaction Office) shall not release such papers and shall retain the principal and interest of the valuable papers being used for these obligations. The handling of members that have not fulfilled their obligations shall be carried out in accordance with State Bank regulations for each respective operation.

b) For valuable papers currently held in custody through the State Bank's client account at VSDC, the State Bank (Transaction Office) shall notify VSDC that the valuable papers are currently pledged at the State Bank, so that VSDC temporarily retains the principal and interest payments arising from such valuable papers (if any). The handling of members that have not fulfilled their obligations shall be carried out in accordance with State Bank regulations for each respective operation.

1. Valuable papers held directly in custody at the State Bank

Where a member wishes to withdraw certificated valuable papers held directly in custody at the State Bank, the member shall send to the State Bank (Transaction Office) an application for withdrawal of valuable papers using Form No. 03 in the Appendix attached to this Circular.

Within 1 working day from the date of receipt of the member's request, the State Bank (Transaction Office) shall verify the completion of the member's obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank shall make accounting entries to debit the valuable papers from the member's custody account held directly at the State Bank and return the certificated valuable papers to the member. Where the member has not yet fulfilled its obligations, the provisions of clause 3 of this Article shall apply.

2. Valuable papers held in custody at the State Bank's client account at VSDC

Where a member wishes to withdraw valuable papers held in custody at the State Bank's client account at VSDC, the member shall send to the State Bank (Transaction Office) a request to transfer the valuable papers from the member's custody account held through the State Bank's client account at VSDC to the member's custody account at VSDC.

Within 1 working day from the date of receipt of the member's request, the State Bank (Transaction Office) shall verify the completion of the member's obligations to the State Bank in the relevant operations using the valuable papers. Where the member has fulfilled its obligations, the State Bank (Transaction Office) shall request VSDC to transfer the member's valuable papers from the State Bank's client account at VSDC to the member's custody account at VSDC. Where the member has not yet fulfilled its obligations, the provisions of clause 3 of this Article shall apply.

3. Where a member has not yet fulfilled its obligations to the State Bank, the State Bank (Transaction Office) shall not release the valuable papers being used for those obligations. The handling of members that have not fulfilled their obligations shall be carried out in accordance with State Bank regulations for each respective operation.

1. Where a member no longer requires custody of valuable papers at the State Bank, or prior to ceasing to exist due to a split, division, merger, consolidation, dissolution or bankruptcy, the member shall prepare and submit directly or by postal service to the head office of the State Bank (single window division) an application for closure of the valuable papers account using Form No. 04 in the Appendix attached to this Circular.

2. Within 2 working days from the date of receipt of the member's request, the State Bank (Transaction Office) shall close the member's custody account for valuable papers and notify the member.

3. Where a member that has been split, consolidated, dissolved or declared bankrupt fails to complete the procedures for closing its custody account for valuable papers, the State Bank (Transaction Office) shall close the member's account within 15 working days from the date of receipt of the Governor of the State Bank's decision on the split, consolidation or dissolution, or the People's Court's decision declaring the credit institution bankrupt (provided the account has no remaining balance).

1. The State Bank purchases valuable papers outright or under a repurchase agreement

Based on the purchase and sale agreement for the reverse repo transaction, or the tender result notification for the outright purchase transaction, the State Bank (Transaction Office) shall make payment for the valuable papers and complete the procedures for transferring ownership of the tendered valuable papers from the member's custody account to the State Bank's valuable papers account.

For a repo transaction by the State Bank, on the contract maturity date, the member shall make payment to repurchase the valuable papers. Upon receipt of the full repurchase payment from the member, the State Bank (Transaction Office) shall transfer ownership of the valuable papers from the State Bank's valuable papers account to the member's custody account.

2. The State Bank sells valuable papers outright or under a repurchase agreement

Based on the purchase and sale agreement for the repo transaction, or the tender result notification for the outright sale transaction, the member shall make payment for the valuable papers and the State Bank (Transaction Office) shall transfer ownership of the valuable papers from the State Bank's valuable papers account to the member's custody account.

For a reverse repo transaction by the State Bank, on the contract maturity date, the member shall sell back the valuable papers under the contract to the State Bank. Based on valid supporting documents, the State Bank (Transaction Office) shall transfer payment to the member and transfer ownership of the valuable papers from the member's custody account to the State Bank's valuable papers account.

1. Upon receipt of a member's request for discounting of valuable papers, where the State Bank accepts the member's request, the State Bank (Transaction Office) shall transfer ownership of the accepted valuable papers from the member's custody account to the State Bank's valuable papers account.

2. Where the State Bank accepts discounting with a maturity period, the remaining maturity of the valuable papers must be longer than the discounting period.

After the member fulfills its repurchase commitment in respect of the valuable papers discounted by the State Bank, the State Bank (Transaction Office) shall transfer ownership of the valuable papers from the State Bank's valuable papers account to the member's custody account.

1. After the State Bank makes a decision on refinancing or special loans secured by pledge of valuable papers, the member shall transfer the valuable papers to be used as collateral to the State Bank. The State Bank (Transaction Office) shall transfer the valuable papers from the member's custody account to the member's collateral account at the State Bank.

Where disbursement is made at the Transaction Office, after completing the pledge of valuable papers, the Transaction Office shall transfer the loan amount to the member's deposit account at the State Bank.

Where disbursement is made at the Regional branch of the State Bank, after completing the pledge of valuable papers, the Transaction Office shall notify the Regional branch of the State Bank responsible for the loan disbursement.

2. Where a member wishes to pledge, release or substitute valuable papers, based on the application for pledge and margin deposit of valuable papers using Form No. 02c in the Appendix attached to this Circular, the application for release of valuable papers using Form No. 02d in the Appendix attached to this Circular, the application for substitution of collateral using Form No. 02b in the Appendix attached to this Circular, and written documents as required by the regulations on refinancing and special loans, the State Bank (Transaction Office) shall carry out checks and make accounting entries in accordance with the principle that the existing collateral shall be released only after the new collateral has been fully provided. Where a loan has been disbursed and is monitored at the Regional branch of the State Bank, the Transaction Office shall notify the Regional branch after completing the pledge, release or substitution of the valuable papers.

3. Where a member has repaid the full principal and interest, based on the member's release request and written documents as required by the regulations on refinancing and special loans, the State Bank (Transaction Office) shall release the valuable papers and transfer them from the member's collateral account to the member's custody account at the State Bank. Where a loan has been disbursed and is monitored at the Regional branch of the State Bank, the Transaction Office shall notify the Regional branch after completing the release of the valuable papers.

1. Upon receipt of a member's request for pledge and margin deposit of valuable papers using Form No. 02c in the Appendix attached to this Circular for the purpose of establishing overdraft facilities, net debit caps, aggregate settlement limits and electronic clearing limits, the State Bank (Transaction Office) shall verify the validity and legality of the supporting documents and transfer the valuable papers from the member's custody account to the collateral account at the State Bank.

2. The State Bank (Transaction Office) shall release a member's pledged and margined valuable papers where the pledged and margined valuable papers reach their payment maturity date, where the member substitutes them with other valuable papers, or where the member wishes to reduce or no longer needs to maintain overdraft facilities, net debit caps, aggregate settlement limits or electronic clearing limits. The State Bank (Transaction Office) shall release maturing valuable papers or part or all of the pledged and margined valuable papers at the member's request, and shall transfer the valuable papers from the collateral account to the member's custody account.

3. To release pledged and margined valuable papers, the member shall submit to the State Bank (Transaction Office) a request for substitution of collateral using Form No. 02b in the Appendix attached to this Circular or a request for release of pledged and margined valuable papers using Form No. 02d in the Appendix attached to this Circular. The State Bank (Transaction Office) shall verify the completion of the member's obligations to the State Bank in the relevant operations. Where the member has fulfilled its obligations, the State Bank (Transaction Office) shall complete the procedures for releasing the valuable papers for the member.

Where a member has not yet fulfilled its obligations to the State Bank, the State Bank (Transaction Office) shall not release the valuable papers currently pledged and margined for those obligations. The handling of members that have not fulfilled their obligations shall be carried out in accordance with State Bank regulations on the pledge and margin deposit of valuable papers to establish overdraft facilities and overnight credit limits, net debit caps, aggregate settlement limits and electronic clearing limits.

1. Valuable papers used in secured lending transactions involving pledge of valuable papers between members must be valuable papers that have not been used as collateral for the performance of obligations in operations at the State Bank. Such valuable papers must currently be held in custody at the State Bank, either directly or through the State Bank's client account at VSDC.

2. Where a member (the pledging party) wishes to pledge valuable papers to borrow funds from another member (the pledgee), the member shall submit to the State Bank (Transaction Office) 1 application comprising:

a) An application for pledge of valuable papers using Form No. 06a in the Appendix attached to this Circular;

b) The pledge agreement for valuable papers between the pledging party and the pledgee (original).

3. The State Bank (Transaction Office) shall receive the application, complete the procedures for blocking the valuable papers and transfer them from the member's custody account to the pledging party's interbank credit collateral account.

4. During the pledge period, with the pledgee's written consent, the pledging party may request the State Bank (Transaction Office) to extend the pledge period and/or to substitute the blocked valuable papers with other valuable papers currently held in custody at the State Bank. The State Bank shall consider acting on the pledging party's request upon receipt of the pledgee's confirmation.

5. The State Bank shall transfer the valuable papers from the interbank credit collateral account to the member's custody account upon receipt of the pledging party's application for release of valuable papers using Form No. 06b in the Appendix attached to this Circular, together with the pledgee's confirmation of consent to the release.

6. Where the pledging party is unable to repay in full or in part, on time, the principal and interest of the loan to the pledgee, within 5 working days from the date of receipt of the pledgee's written request, the State Bank shall complete the procedures for transferring ownership of the valuable papers from the pledging party to the pledgee pursuant to the pledgee's written request without requiring the pledging party's (owner's) confirmation, provided both parties have agreed on such procedures in the pledge agreement. Where the pledging party and the pledgee have not agreed on the procedures for transferring ownership of the valuable papers from the pledging party to the pledgee in the pledge agreement, the State Bank shall only complete such procedures pursuant to the pledgee's written request bearing the confirmation of the pledging party (owner) and a debt settlement record between the two parties. Where the pledging party fails to fulfill its obligations and does not confirm the use of the collateral in lieu of the repayment obligation, the State Bank shall not release the valuable papers and shall enforce the collateral in accordance with applicable law.

1. Valuable papers held directly in custody at the State Bank

a) Members may purchase and sell valuable papers currently held directly in custody at the State Bank. The selling member shall submit to the State Bank (Transaction Office) an application for transfer of ownership of valuable papers using Form No. 05 in the Appendix attached to this Circular and the purchase and sale agreement between both parties (original). The State Bank (Transaction Office) shall transfer ownership of the valuable papers from the selling member's custody account to the purchasing member. The valuable papers shall continue to be held in custody at the State Bank unless the purchasing member requests otherwise;

b) In the case of a term purchase and sale of valuable papers, the seller under the reverse repo shall submit to the State Bank (Transaction Office) an application for transfer of ownership of valuable papers using Form No. 05 in the Appendix attached to this Circular and the purchase and sale agreement between both parties (original). The State Bank shall transfer ownership of the valuable papers from the seller under the reverse repo to the buyer under the reverse repo.

On the contract maturity date, based on valid payment documents and the application for transfer of ownership of valuable papers using Form No. 05 in the Appendix attached to this Circular submitted by the owner of the valuable papers (buyer under the reverse repo), the State Bank (Transaction Office) shall transfer ownership of the valuable papers from the buyer under the reverse repo to the seller under the reverse repo. In other cases, the State Bank shall transfer ownership of the valuable papers in accordance with the lawful agreement between the parties or applicable law.

2. For valuable papers currently held in custody at VSDC, the member must complete the procedures for withdrawing the valuable papers from the State Bank's client account at VSDC prior to conducting the purchase and sale. The purchase and sale of valuable papers currently held in custody at VSDC shall be carried out in accordance with applicable securities laws.

1. Transaction Office

a) Open and close custody accounts for valuable papers, make accounting entries for custody, withdrawal from custody, payment of principal and interest (in respect of valuable papers issued by the State Bank and currently held in custody at the State Bank), collect interest and custody fees, pledge, margin deposit, release and transfer ownership of valuable papers at the State Bank as required;

b) Devolve authority to members to participate in custody and use of valuable papers at the State Bank;

c) Devolve authority to members to inquire into custody balances and use of valuable papers at the State Bank;

d) Act as the focal point and cooperate with relevant units in resolving difficulties and obstacles in the course of performing custody and use of valuable papers at the State Bank;

dd) Conclude an agreement with VSDC on coordination in processing transactions in valuable papers.

2. Department of Information Technology

a) Act as the focal point and cooperate with the Transaction Office and relevant units in developing, installing and maintaining the relevant software programs and ensuring the transaction network and communication infrastructure for the custody and use of valuable papers at the State Bank;

b) Issue State Bank specialized electronic signatures and access accounts for the custody and use of valuable papers at the State Bank.

3. State Bank Inspectorate

Act as the focal point and cooperate with relevant units in handling administrative violations by members in accordance with this Circular and applicable law.

4. Department of Credit Institution Management and Supervision, and Regional branches of the State Bank

Within their respective authority, notify the Transaction Office when a member is granted an establishment and operation license; when a proposed personnel list is approved for a member; or when a member undergoes a split, division, merger, consolidation, dissolution or bankruptcy.

1. Provide and update fully and promptly the application documents, materials and valuable papers as required by this Circular, and be legally responsible for the accuracy and legality of the data, materials, application documents and valuable papers provided to the State Bank.

2. Fulfill commitments and make full and timely payments to the State Bank and other members under signed agreements.

3. Authorize the State Bank to transfer ownership of valuable papers in money market operations.

4. Comply with the requirements in the State Bank's notifications relating to money market operations.

5. Pay custody fees for valuable papers at the State Bank and service charges arising from the transfer of ownership of valuable papers as prescribed by the Ministry of Finance (if applicable).

1. Credit institutions, foreign bank branches and organizations that are members referred to in clause 2 Article 2 of this Circular that currently have custody accounts for valuable papers at the State Bank may continue to use such accounts to carry out operations as prescribed in this Circular.

2. Transactions relating to valuable papers that were carried out before the effective date of this Circular shall continue to be performed in accordance with the agreements signed between the relevant parties.

1. This Circular comes into force as of July 4, 2026.

2. This Circular annuls Circular No. 16/2022/TT-NHNN dated November 30, 2022 of the Governor of the State Bank of Vietnam on the custody and use of valuable papers at the State Bank of Vietnam.

3. The Chief of Office, the Director of the Transaction Office, the heads of relevant units under the State Bank, Deposit Insurance of Vietnam, credit institutions and foreign bank branches shall implement this Circular./.