Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
On 1 April 2023, Circular No. 11/2022/TT-NHNN issued in 2022 by the State Bank of Vietnam (SBV) regarding bank guarantee operations came into effect. Among its provisions, the Circular’s Article 9 permits credit institutions, foreign bank branches, and customers to conduct bank guarantee transactions using electronic means.
When issuing e-guarantees, institutions and banks must conform to AML legal regulations and SBV guidelines on management of risks associated with e-banking operations and other relevant legislative documents. Each institution or bank may decide on methods, forms and technologies to be used throughout the entire e-guarantee process, subject to meeting specified requirements.
The Circular is comprised 37 articles contained within four chapters (General Provisions; Specific Provisions; Reporting and Implementation Organization; and Implementation).
Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
On 15 Feb 2023, DCSA members pledged to issue 50% of bills of lading (B/Ls) electronically by 2028 and 100% by 2030, aiming to cut costs and boost global trade.
