State Bank of Vietnam plans to amend capital adequacy rules towards Advanced Basel II as it develops an international financial centre framework

At a seminar on international experience and the banking system’s role in an international financial centre (IFC), the State Bank of Vietnam highlighted the regulatory trade-offs involved in establishing an IFC in Vietnam and flagged upcoming work to align bank supervision more closely with international standards, including a review and amendment of its circular on capital adequacy ratios to comply with Advanced Basel II. Discussion focused on designing a legal framework that allows an IFC to operate effectively while preserving macroeconomic stability and financial-system safety. The central bank’s supervisory arm pointed to constraints from Vietnam’s relatively tight legal framework, including rules on capital transactions despite capital-flow liberalisation being a common IFC condition, and noted the need to manage safety risks as IFC banking activity shifts toward newer, internationally aligned services rather than traditional banking. Other participants reiterated that there is no single best IFC model and referenced plans centred on Ho Chi Minh City and Da Nang, alongside proposals to broaden financial products and test new markets such as commodities, foreign exchange and digital assets. The organiser will compile feedback from the event and submit a consolidated report to State Bank of Vietnam leadership as reference material for IFC-related policymaking.