HCMC – Private banks that acquire underperforming financial institutions will be permitted to raise their foreign ownership limit from the current 30% to a maximum of 49% of their charter capital starting May 2025.

This policy does not apply to credit institutions in which the State holds more than 50% of charter capital. The Government has issued Decree No. 69/2025/ND-CP, which amends and supplements certain provisions of Decree No. 01/2014/NĐ-CP on foreign investors purchasing shares in Vietnamese credit institutions. Set to take effect on May 19, the decree allows total foreign ownership in a commercial bank that has compulsorily acquired a weak bank to exceed 30% but not surpass 50% of its charter capital. If foreign investors exceed the permitted threshold, they must reduce their ownership within six months to comply with the limits. During this period, they are not allowed to purchase additional shares until total foreign ownership falls below the prescribed cap. In addition to the foreign ownership increase, credit institutions that acquire weak banks will benefit from several preferential policies, including refinancing loans at preferential interest rates, reduced required reserve ratios, and expanded credit limits under the amended Law on Credit Institutions. To date, the State Bank of Vietnam (SBV) has completed the compulsory transfer of four underperforming banks: CB, OceanBank, DongA Bank, and GPBank, assigning them to Vietcombank, MB, HDBank, and VPBank, respectively.