Viet Nam

Viet Nam

Raises foreign ownership cap for commercial banks undergoing restructuring or transfer

18 Mar 2025

On 18 March 2025, the Government of Viet Nam issued Decree No. 69/2025/ND-CP, amending several provisions of Decree No. 01/2014/ND-CP concerning foreign investment in Vietnamese financial institutions.

Under the new decree, the general cap on foreign ownership in Vietnamese commercial banks remains at 30 per cent. However, for commercial banks undergoing mandatory restructuring or transfer, foreign investors may own up to 49 per cent of charter capital, provided the bank is not majority State-owned.

The decree also requires foreign investors who exceed the ownership cap after the acquisition, to reduce their stake within six months to ensure compliance with the regulation. In addition, foreign investors are prohibited from purchasing additional shares if the total foreign ownership in a credit institution exceeds the legal threshold, until ownership levels fall back within the permitted limit.

The decree will enter into force on 19 May 2025.

  • Type:
    • Entry and establishment (Ownership and control)
  • Industry:
    • Services (Financial and insurance activities)
  • Sources:
    • Official legislation portal, Nghị định số 69/2025/NĐ-CP của Chính phủ: Sửa đổi, bổ sung một số điều của Nghị định số 01/2014/NĐ-CP ngày 03 tháng 01 năm 2014 của Chính phủ về việc nhà đầu tư nước ngoài mua cổ phần của tổ chức tín , https://datafiles.chinhphu.vn/cpp/files/vbpq/2025/3/69-cp.signed.pdf, 18 Mar 2025