Financing adjustments set for May implementation: Key measures detailed
Fresh Take:
Capital City Rules: What You Need to Know
Sayonara, Silicon Valley? New Investment Limits for Foreigners in Vietnamese Banks
Starting May 19, 2025, foreign investors better brace themselves for some changes. Decree 69, issued by the Government on March 18, has some guidelines that could potentially shake up the investment scene in Vietnam's financial sector.
This regulation aligns with the 2019 Law on Securities, which mandates that public companies must cancel their treasury shares instead of keeping them for resale. After January 1, 2021, foreign investors can only buy shares that were previously owned by Vietnamese credit institutions (CIs).
When it comes to ownership ratios, foreigners can't hold more than 30% of a Vietnamese commercial bank's charter capital, and the cap is set at 50% for non-bank CIs. However, in special situations like weak institutions or those undergoing compulsory transfers, the foreign ownership ratio can be temporarily increased to 49%, subject to an approved transfer plan. If foreign ownership exceeds the limit, investors have six months to bring it down, or else they'll face restrictions on purchasing additional shares.
Apartment Rentals in Hanoi: Pay Up or Move Out
Looking to rent an apartment in Hanoi? Be ready to open up your wallet a bit more! The city's People's Committee has set new fees for apartment management services, effective May 1, 2021.
For elevators-less apartments, the fee ranges from 700 to 5,000 VND per square meter per month. Meanwhile, those with elevators need to cough up between 1,200 to 16,500 VND per square meter per month. Keep in mind that these fees don't include premium services such as saunas, swimming pools, or cable TV.
Exemptions apply to old apartments that haven't been renovated, social housing for students and workers, and situations where the price is agreed upon through meetings or contracts.
State Bank's Money Factory: Rules and Regulations
Wondering how the State Bank of Vietnam prints money? Well, you're in luck! Decision 06, signed by Deputy Prime Minister Hò̀ Đức Phớc on March 26, sets the rules for money printing and minting orders between the State Bank and domestic printing and minting facilities, effective May 19, 2021.
The ordering process will be based on technical-economic norms issued by the State Bank, the annual printing and minting plan, and the unit prices set by the authorities. After receiving an order, the printing and minting facility will propose a pricing plan, which will be reviewed by the State Bank. Based on the review, the Ministry of Finance will issue a maximum price for the order, and the State Bank will set the unit price for each product, ensuring it doesn't surpass the approved overall maximum price.
Bank notes are counted at a commercial bank. - Photo thoibaonganhang.vn
Must-haves for printing and minting facilities include legal establishment, adherence to banking regulations, financial capacity, suitable infrastructure, up-to-date technical equipment, advanced technology, and a well-trained workforce. Security and safety throughout the printing and minting process are also non-negotiables.
- The government's Decree 69, effective from May 19, 2025, imposes new investment limits on foreigners in Vietnamese banks.
- After January 1, 2021, foreign investors can only buy shares in Vietnam that were previously owned by Vietnamese credit institutions.
- Foreigners are restricted from holding more than 30% of a Vietnamese commercial bank's charter capital, and the cap is set at 50% for non-bank credit institutions.
- The government's 2019 Law on Securities mandates that public companies must cancel their treasury shares instead of keeping them for resale.
- In the housing sector, new fees for apartment management services in Hanoi, effective May 1, 2021, range from 700 to 16,500 VND per square meter per month.
- In the finance industry, the State Bank of Vietnam has issued Decision 06, which sets rules for money printing and minting orders between the State Bank and domestic printing and minting facilities, effective May 19, 2021.
- To qualify as a printing and minting facility, they must adhere to banking regulations, have adequate financial capacity, suitable infrastructure, advanced technology, a well-trained workforce, and prioritise security and safety throughout the process.
