“letter of credit (L/C)” means any irrevocable undertaking of an issuing bank to pay the beneficiary on the basis of the received set of documents under a complying presentation.
In 2025, key considerations for Letters of Credit (LC) include:
- Ensuring compliance with Regulations and Practice for Documentary Credits, which governs LC transactions.
- Verifying all required documents are accurate and submitted within specified timeframes.
- Maintaining clarity in terms and conditions to avoid disputes between parties.
Some transactions use LC as buy and sales contracts appropriate for transactions with long-term period.
“issuance of L/C” means an issuing bank extending credit to a customer through issuance of an L/C to a beneficiary at the customer’s request. The customer must accept the debt and fully pay the principal, interest and fees as agreed in case the bank must make payment to the beneficiary using its own funds or request another bank to make payment on the customer's behalf.
Any L/C operation provided by a bank to a customer shall be bound by an agreement between the bank and the customer. Upon performing an L/C operation, the bank must comply with the regulations enshrined in this Circular and relevant regulations of law on credit extension. Other contents regarding L/C operations, the bank shall comply with international commercial practice for L/C.
The performance of L/C operations in a foreign currency by a bank must fall within the scope of foreign exchange operations on the domestic and international markets specified in operating license of that bank and comply with regulations of law on scope of foreign exchange operations, conditions and procedures for granting approval of foreign exchange operations of CIs and FBBs, and regulations of law on trading and provision of foreign exchange services on the domestic and international markets by banks.

“letter of credit (L/C)” means any irrevocable undertaking of an issuing bank to pay the beneficiary on the basis of the received set of documents under a complying presentation.
In 2025, key considerations for Letters of Credit (LC) include:
- Ensuring compliance with Regulations and Practice for Documentary Credits, which governs LC transactions.
- Verifying all required documents are accurate and submitted within specified timeframes.
- Maintaining clarity in terms and conditions to avoid disputes between parties.
Some transactions use LC as buy and sales contracts appropriate for transactions with long-term period.
“issuance of L/C” means an issuing bank extending credit to a customer through issuance of an L/C to a beneficiary at the customer’s request. The customer must accept the debt and fully pay the principal, interest and fees as agreed in case the bank must make payment to the beneficiary using its own funds or request another bank to make payment on the customer's behalf.

Any L/C operation provided by a bank to a customer shall be bound by an agreement between the bank and the customer. Upon performing an L/C operation, the bank must comply with the regulations enshrined in this Circular and relevant regulations of law on credit extension. Other contents regarding L/C operations, the bank shall comply with international commercial practice for L/C.
The performance of L/C operations in a foreign currency by a bank must fall within the scope of foreign exchange operations on the domestic and international markets specified in operating license of that bank and comply with regulations of law on scope of foreign exchange operations, conditions and procedures for granting approval of foreign exchange operations of CIs and FBBs, and regulations of law on trading and provision of foreign exchange services on the domestic and international markets by banks.