The Government has just issued Decree No. 69/2025/ND-CP, amending and supplementing a number of articles of Decree No. 01/2014/ND-CP on foreign investors buying shares at credit institutions (CIs) of Vietnam.
The Decree takes effect from May 19, 2025.
Regarding the share ownership ratio for foreign investors, Decree No. 69/2025/ND-CP amends and supplements Clause 5, Article 7 of Decree 01/2014/ND-CP as follows:
- The total equity ownership of foreign investors does not exceed 30% of the charter capital of a Vietnamese commercial bank, except for the cases specified in Clauses 6 and 6a of this Article or during the implementation period specified in Clause 9, Article 14 of this Decree.
- The total equity ownership of foreign investors does not exceed 50% of the charter capital of a non-bank credit institution in Vietnam, except for the cases specified in Clause 6 of this Article.
Meanwhile, Clause 6, Article 7 of Decree 01/2014/ND-CP is also amended and supplemented:
- In special cases to ensure the safety of the credit institution system, the Prime Minister decides on the share ownership ratio of a foreign institution, a foreign strategic investor, the total share ownership of foreign investors in a weak joint stock credit institution, facing difficulties exceeding the limit prescribed in Clauses 2, 3, 5 of this Article for each specific case.
At the same time, Decree No. 69/2025/ND-CP also adds Clause 6a after Clause 6, Article 7 of Decree 01/2014/ND-CP:
- The total equity ownership of foreign investors in commercial banks receiving compulsory transfers (excluding commercial banks with more than 50% of charter capital held by the State) is allowed to exceed 30% but not exceed 49% of the charter capital of commercial banks receiving compulsory transfers according to the approved compulsory transfer plan and implemented within the period of the compulsory transfer plan.
Previously, Decree No. 01/2014/ND-CP of 2014 of the Government stipulated:
- The total equity ownership of foreign investors does not exceed 30% of the charter capital of a Vietnamese commercial bank.
- The total ownership of shares of foreign investors in a Vietnamese non-bank credit institution shall comply with the provisions of law for public companies and listed companies.
