The State Bank of Vietnam has circulated for comment a draft decree that would create a dedicated framework for licensing and supervising banking operations in Vietnam’s international financial centre, alongside tailored rules on foreign exchange management and anti-money laundering, counter-terrorist financing and proliferation financing. The draft is positioned as a bespoke regime intended to accommodate international financial institutions and related market infrastructure operating in the centre. Key proposals include simplifying licensing from a two-step to a one-step process, with the licensing timeline reduced from 180 days to 120 days after receipt of a complete and valid application. Governance requirements are broadly aligned with the Law on Credit Institutions, while internal rules on organisation and operations would be set in the charter for member commercial banks to reduce administrative procedures. Member commercial banks and member foreign bank branches would be permitted to undertake a wide range of activities including taking deposits, providing credit, account-based payments, foreign exchange transactions, interest rate and commodity price derivatives, and treasury services, and would be able to follow owner or parent-bank policies for certain cross-border business to mitigate legal frictions. For prudential limits and ratios, foreign-owned banks and foreign bank branches applying IAS/IFRS could apply certain owner or parent-bank policies, while domestically owned commercial banks would follow Vietnamese law. Other elements cover a single-presence restriction in the centre with no network expansion, principles for handling non-performing loans and collateral including choice of law for most assets (excluding real estate, which follows the law where the property is located), relaxations to outbound lending approvals and registrations, eased conditions for indirect overseas investment (profitability and no tax arrears in the prior year) without an annual government-approved aggregate cap, and AML measures including allowing parent-bank controls where not inconsistent with Vietnamese law and a USD 1,000 reporting threshold for international electronic funds transfers.
State Bank of Vietnam 2025-08-22
State Bank of Vietnam launches consultation on draft rules for the international financial centre including one-step 120-day bank licensing
The State Bank of Vietnam has issued a draft decree proposing a framework for licensing and supervising banking operations in Vietnam's international financial centre. Key changes include a streamlined one-step licensing process, reduced timelines, and tailored rules on foreign exchange management and anti-money laundering. The draft aims to accommodate international financial institutions, allowing member banks to engage in various activities and follow parent-bank policies for cross-border business.