Recently, the State Bank of Vietnam (SBV) has received requests for supplementing the License with details regarding the operation of discounting documents without draft of some credit institutions (CIs), foreign bank branches (FBBs). In this regard, the SBV provides its opinion as follows:

1. For CIs, FBBs whose License already has details of “international payment” shall be permitted to agree on application of the Incoterms issued by International Chamber of Commerce (UCP 600, UCR 522…) to perform discount of documents without draft.

2. For CIs, FBBs whose License has not detail of “international payment” yet, it is required to supplement the License with this detail for the purpose of performing discount of documents without draft.

The State Bank of Vietnam hereby notifies CIs, FBB for information and implementation.

Authorized by the Governor of the State Bank For the Director of Banking Inspection and Supervision Agency