HANOI: The State Bank of Vietnam (SBV) is concerned that a Planning and Investment Ministry (MPI) proposal to remove the foreign ownership cap and foreign investment conditions of banks or credit institutions headquartered in the country’s international financial centres, could pose risks.
The concern was raised after the MPI made public a draft resolution on the establishment of international financial centres in Vietnam, asking for comments.
Under the draft, the MPI proposed that banks or credit institutions headquartered in Vietnam’s international financial centres not be subject to foreign ownership restrictions or foreign investment conditions when providing services in the centres or cross-border services.
However, the SBV believes that this proposal needs further review to limit risks.
The SBV explained that the foreign ownership ratio and foreign investment conditions when providing services in the centres are directly related to Vietnam’s trade and investment commitments.
The SBV said the draft regulation needs to be further considered to limit the risk of violating obligations in Vietnam’s trade and investment protection agreements.
Under the draft resolution, the MPI also proposed that the formation of a digital banking model of commercial banks be implemented in the centres from Jan 1, 2026.
In addition, the MPI said the roadmap for applying international banking standards Basel III would also start in the financial centres from Jan 1, 2026.
However, the SBV believes that the roadmap for applying Basel III at the centres needs to be consistent with the mechanisms of applying for commercial banks and branches of foreign banks in the country. — Viet Nam News/ANN
