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New Regulations on Foreign Investors’ Activities in Buying Treasury Stocks of Banks
One of the notable points in this Decree is the provision that foreign investors are only allowed to purchase treasury stocks if those stocks were bought by the credit institution before January 1, 2021.
Specifically, Decree No. 69/2025/ND-CP stipulates the following: Foreign investors can buy shares when a credit institution offers or issues shares to increase its charter capital or sells treasury stocks that the institution purchased before January 1, 2021.
The Bank Subject to Mandatory Transfer will have its Foreign Ownership Limit Increased to 49%
Regarding the ratio of share ownership for foreign investors, Decree No. 69/2025/ND-CP amends and supplements Clause 5, Article 7 of Decree 01/2014/ND-CP as follows: “5. The total ownership ratio of shares by foreign investors shall not exceed 30% of the charter capital of a Vietnamese commercial bank, except for cases prescribed in Clauses 6, 6a of this Article or during the implementation period prescribed in Clause 9, Article 14 of this Decree. The total ownership ratio of shares by foreign investors shall not exceed 50% of the charter capital of a non-bank Vietnamese credit institution, except for cases prescribed in Clause 6 of this Article.”
Meanwhile, Clause 6, Article 7 of Decree 01/2014/ND-CP is also amended and supplemented as follows: “6. In special cases to ensure the safety of the credit institution system, the Prime Minister shall decide on the ratio of ownership of shares by a foreign organization or a foreign strategic investor, the total ownership ratio of shares by foreign investors at a weak or struggling credit institution exceeding the limits prescribed in Clauses 2, 3, and 5 of this Article for each specific case.”
At the same time, Decree No. 69/2025/ND-CP also supplements Clause 6a after Clause 6, Article 7 of Decree 01/2014/ND-CP: “6a. The total ownership ratio of shares by foreign investors at a commercial bank subject to mandatory transfer (excluding commercial banks in which the State holds more than 50% of the charter capital) may exceed 30% but must not exceed 49% of the charter capital of the commercial bank subject to mandatory transfer according to the approved mandatory transfer scheme and within the time limit of the mandatory transfer scheme.”
Supplementing the Obligations of Foreign Investors
Regarding the obligations of foreign investors, Decree No. 69/2025/ND-CP supplements the following provisions: When a foreign investor purchases additional shares corresponding to the ratio of common shares of each shareholder in the credit institution, and the limit on the ratio of share ownership by foreign investors prescribed in Article 7 of this Decree is exceeded, the following shall apply:
If a foreign investor or a foreign investor and related persons exceed the limit prescribed in Article 7 of this Decree, within a maximum of six months from the time of exceeding the limit, the foreign investor must reduce the ratio of share ownership to ensure compliance with the limit prescribed in Article 7 of this Decree.
If the total ownership ratio of shares by foreign investors exceeds the limit prescribed in Article 7 of this Decree, the foreign investor shall not be allowed to purchase additional shares of that credit institution until the total ownership ratio of shares by foreign investors complies with the provisions of Article 7 of this Decree.
From the end of the time limit for implementing the mandatory transfer scheme, the foreign investor shall not be allowed to purchase additional shares of the commercial bank subject to mandatory transfer (except in cases where the commercial bank subject to mandatory transfer offers to sell shares to existing shareholders or the foreign investor sells the shares it owns of the commercial bank subject to mandatory transfer to another foreign investor by agreement) until the total ownership ratio of shares by foreign investors at that commercial bank is lower than 30% of the charter capital.
Mạnh Đức
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