THE STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 07/2006/TT-NHNN
Hanoi, September 7, 2006
 
CIRCULAR
PROVIDING GUIDANCE ON PURCHASE AND SUBLEASING ACTIVITY IN FORM OF FINANCE LEASING IN ACCORDANCE WITH THE PROVISIONS OF THE DECREE NO. 16/2001/ND-CP DATED 02/5/2001 AND THE DECREE NO. 65/2005/ND-CP DATED 19/5/2005 OF THE GOVERNMENT
Pursuant to Article 42 of the Decree No.16/2001/ND-CP dated 02/5/2001 of the Government on the organization and operation of finance leasing companies, Article 3 of the Decree No. 65/2005/ND-CP dated 19/5/2005 of the Government providing for the amendment, supplement of several articles of the Decree No.16/2001/ND-CP dated 02/5/2001 of the Government on the organization and operation of finance leasing companies, the State Bank of Vietnam would like to provide guidance on some contents concerning the purchase and subleasing activity in form of finance leasing in accordance with the provisions in these Decrees as follows:
1. Interpretation
In this Circular, the following terms shall be construed as follows:
1.1. “Purchase and subleasing in form of finance leasing” (hereinafter referred to as purchase and subleasing) means a finance leasing company purchases assets that belong to the lessee’s ownership and leases those very assets to the lessee in form of finance leasing so that the lessee continues to use and serve its activities. In a purchase and subleasing transaction, the lessee shall be concurrently the supplier of leasing assets.
1.2. “Purchaser and sublessor” (hereinafter referred to as the lessor) is finance leasing companies that are permitted to establish and operate in Vietnam.
1.3. “Seller and sublessee” (hereinafter referred to as the lessee) is organizations and individuals provided for in point 1.1 paragraph 1, Circular No. 06/2005/TT-NHNN dated 12/10/2005 of the Governor of the State Bank providing guidance on the implementation of several contents in the Decree No.16/2001/ND-CP dated 02/5/2001 of the Government on the organization and operation of finance leasing companies and the Decree No. 65/2005/ND-CP dated 19/5/2005 of the Government providing for the amendment, supplement of several articles of the Decree No.16/2001/ND-CP dated 02/5/2001 of the Government on the organization and operation of finance leasing companies. The lessee shall directly sell its assets to the finance leasing company and sublease those assets in form of finance leasing for continuous use and serving its activities.
1.4. “Assets to be purchased and subleased’ (hereinafter referred to as leasing assets) are machines, equipments, transport means and other movable assets that the lessee sells to the lessor and then subleases in form of finance leasing for continuous use and serving its activities.
1.5. “Purchasing price of leasing assets” means the amount payable by the lessor to the lessee when it purchases leasing assets. The purchasing price of leasing assets shall be determined in line with provisions of applicable laws on assets trading.
1.6. “Contract of assets purchase” is a written agreement between the lessor and the lessee about the leasing assets trading.
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