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.
Nature of measure:
Type:
-
Entry and establishment (Ownership and control)
Industry:
-
Services (Financial and insurance activities)
Inward FDI:
No
Outward FDI:
No
Sources:
