Decree on foreign investment in Vietnamese financial institutions amended

Decree on foreign investment in Vietnamese financial institutions amended

Decree No. 69/2025/NĐ-CP amends several provisions of Decree No. 01/2014/NĐ-CP regarding foreign investment in Vietnamese financial institutions.

Total foreign ownership in Vietnamese commercial banks is capped at 30 per cent, with some exceptions, under Decree No. 69/2025/NĐ-CP. — VNA/VNS Photo

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/NĐ-CP amends several provisions of Decree No. 01/2014/NĐ-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 per cent, with some exceptions, while that in non-bank credit institutions is no more than 50 per cent.

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 per cent but not surpass 49 per cent 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. 

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