Vietnamese commercial banks, operating in the country’s International Financial Centre (IFC), are not allowed to purchase and sell bonds issued in foreign currency abroad exceeding 7 per cent of their equity.

 

The rule falls under the newly issued Decree No 329/2025/NĐ-CP regulating the licensing of bank establishment and operation, foreign exchange management, anti-money laundering, anti-terrorism financing and anti-proliferation financing of weapons of mass destruction at the IFC.

 

According to the new decree, to get a licence for buying and selling foreign currency-denominated bonds abroad, domestic commercial banks must have profits for three consecutive years immediately preceding the year of application for a certificate of registration for buying and selling foreign currency-denominated bonds abroad, as shown in independently audited financial statements as per current regulations of the Ministry of Finance.

 

Besides complying with regulations on safe investment ratios and capital sources, the banks must also fully fulfil their financial obligations to the State as stipulated by current tax laws, except for the first year of establishment, to qualify for buying and selling foreign currency-denominated bonds abroad.

 

Bonds bought and sold abroad by domestic commercial banks must be rated by international credit rating agencies, including Standard & Poor's, Moody's and Fitch Ratings.

 

In relation to the IFC, the Government has recently also issued Decree No 330/2025/NĐ-CP regulating the establishment and operation of commodity exchanges within the IFC.

 

Accordingly, to be qualified for establishing a commodity exchange in the IFC, enterprises must be a member of the IFC or a subsidiary of an IFC’s member company with the capital contribution of the member company accounting for at least 49 per cent of the charter capital.

 

In the case of a foreign-invested enterprise, the total capital contribution of foreign investors must not exceed 49 per cent.

 

In addition, the enterprises must have a charter capital of VNĐ1.5 trillion (US$56.8 million) or more; and have the organisational model and operational functions of a commodity exchange, and a draft operating charter that complies with the Government's regulations on trading goods through commodity exchanges.

 

The enterprises are also required to have an information technology system that meets the requirements for safe, stable and secure management and operation.

 

Việt Nam has recently announced the establishment of an IFC in Việt Nam, located in HCM City and Đà Nẵng, describing it as a turning point that will open the country to financial technology integration and green economy transformation. — BIZHUB/VNS

 

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