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| Foreign ownership caps in Vietnamese commercial banks are set at 30% in Decree No. 69/2025/ND-CP, with certain exceptions. (Photo: VNA) |
The Vietnamese government has implemented a new decree, Decree No. 69/2025/ND-CP, which amends the rules regarding foreign investment in the country’s financial institutions. Specifically, it outlines regulations on purchase methods, ownership limits, and investor obligations.
According to the decree, foreign ownership in Vietnamese commercial banks is generally limited to 30%. However, there are exceptions to this rule, and in certain cases, the Prime Minister will decide on the ownership percentage for foreign organizations or strategic investors.
Additionally, the decree permits foreign ownership in commercial banks undergoing mandatory transfers to go beyond the 30% mark but not exceed 49% of the charter capital, on the condition that the bank is not majority state-owned.
In the event that foreign investors surpass the regulated ownership thresholds, they are required to reduce their ownership percentage within six months to comply with the limits set forth in the decree.
Furthermore, when the total foreign ownership in a credit institution surpasses the legal threshold, foreign investors are prohibited from purchasing additional shares until the total foreign ownership falls below the prescribed limits.
These new regulations will come into effect on May 19, 2025, and are expected to have a significant impact on the Vietnamese financial sector.
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