Decree on foreign investment in Vietnamese financial institutions amended
The Vietnamese Government has issued a new decree stipulating that foreign investors could only buy treasury stocks which were purchased by credit institutions before January 1, 2021.
Decree No. 69/2025/ND-CP amends several provisions of Decree No. 01/2014/ND-CP regarding foreign investment in Vietnamese financial institutions. The changes specifically address purchase methods, ownership limits, and investor obligations.
Accordingly, total foreign ownership in Vietnamese commercial banks is capped at 30%, with some exceptions, while that in non-bank credit institutions is no more than 50%.
In special cases involving weak or troubled financial institutions, the Prime Minister will decide on ownership percentage of a foreign organisation or a strategic foreign investor. The new decree also allows foreign ownership in commercial banks undergoing mandatory transfers to exceed 30% but not surpass 49% of charter capital, provided the bank is not majority state-owned.
If foreign investors surpass the regulated thresholds, they must reduce their ownership percentage within six months to comply with the limits.
When the total foreign ownership in a credit institution exceeds the legal threshold, foreign investors cannot purchase additional shares until total foreign ownership falls below the prescribed limits.
The decree will take effect on May 19, 2025.
Majority of credit institutions forecast profit growth in 2024
A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).
