Vietnam’s SBV flags risks in lifting foreign ownership limits on banks

The State Bank of Vietnam (SBV) has raised concerns over a proposal by the Ministry of Planning and Investment (MPI) to remove foreign ownership caps and investment conditions for banks in the country’s planned international financial centres. The central bank warned that the move could pose risks and potentially breach Vietnam’s trade and investment commitments. The draft resolution also outlines the introduction of a digital banking model and the adoption of Basel III standards from 2026, though the SBV insists the timeline should align with the existing framework for commercial banks. Officials see the financial centres as key to attracting global investment, leveraging Vietnam’s strong GDP growth, expanding stock market, and stable political environment to enhance financial market integration.