- PPP Law of Vietnam Admits Letter of Guarantee (L/G) Issued by Insurer2020-07-07
“Letter of Guarantee (L/G) Issued by Insurer” is newly added to the Law on Public-Private Partnership Investment (PPP)
Payment Guarantee issued by insurers is inserted in the newly enacted PPP Law as one of the lawful methods for submitting tender guarantee and/or contract performance guarantee. Companies now have a wider range of options in terms of offering collateral. Only cash or bank guarantee had been acknowledged as legally qualified collateral in Vietnam.
Article 35 Tender guarantee
1. Tender Guarantee means an investor implements one of the measures of paying a deposit, escrow deposit or lodging a letter of guarantee from a credit institution, foreign bank branch or insurer lawfully operating in Vietnam prior to the time of tender closing in order to guarantee the responsibilities of the investor participating in the tendering.
Article 48 Guarantee for performance of the PPP project contract
1. Contract performance guarantee means the selected investor provides a deposit or escrow deposit or lodges a letter of guarantee from a credit institution, foreign bank branch or insurer lawfully operating in Vietnam to ensure discharge of the responsibility of the investor to perform the contract.
Article: "National Assembly passes Law on PPP Investment", June 18, 2020What`s New - PPP Law.pdf