Foreign investors will be allowed to own up to 49 percent of the charter capital in Vietnamese commercial banks involved in mandatory transfers, starting from May 19, 2025, under Decree No. 69/2025/ND-CP recently issued by the government. The change applies to banks like MB, HDBank, and VPBank, which are participating in state-mandated acquisition and restructuring of weaker banks, VietnamBiz has reported.
VietnamBiz goes on to note that:
- The current cap on foreign ownership in Vietnamese commercial banks is 30 percent, but this will be lifted to 49 percent for banks receiving mandatory transfers.
- The new ceiling applies only during the implementation of the approved compulsory transfer (CGBB) plan and does not apply to state-owned banks holding more than 50 percent state capital.
- The amendment supplements Article 7 of Decree 01/2014/ND-CP, creating room for foreign capital in strategic cases aimed at strengthening the banking system.
- In special cases, the Prime Minister may still approve higher foreign ownership beyond existing limits to ensure systemic stability.
The move is part of Vietnam’s broader effort to restructure its banking sector. For banks like MB, HDBank, and VPBank, the increased foreign room could attract new capital, partnerships, and technical expertise during a critical transformation period.
See also: Banking in Vietnam: Industry Overview