In the evening of January 17, 2024, Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) attended the Seminar on "Potentials and opportunities for investing in Vietnam's financial market", which was co-organized by the Ministry of Planning and Investment, the Swiss Banking Association, VinaCapital Investment Fund. The Seminar was chaired by Prime Minister Pham Minh Chinh, and also attended by leaders of the Ministries, agencies, local authorities, together with experts and leaders of a lot of international and Vietnamese financial institutions and commercial banks.
At the Seminar, when discussing about the regulations on foreign ownership at Vietnamese credit institutions, as well as the management of investment capital flows in and out of Vietnamese territory, Governor Nguyen Thi Hong shared that according to the regulations, the share ownership ratio of a foreign investor must not exceed 5% of the charter capital of a Vietnamese credit institution. This ratio for a foreign organization is 15%, and for a strategic investor it is 20%. Also, the total share ownership of all foreign investors at a credit institution must not exceed 30%. In special cases, to restructure a poor-performing credit institution and ensure the safety of the credit system, the Government may determine specifically the share ownership ratio of a foreign strategic investor or investment organization, as well as the total share ownership of all foreign investors at that credit institution.
Participants at the Seminar on "Potentials and opportunities for investing in Vietnam's financial market"
Regarding the regulations on the forex management, the SBV Governor said that in Vietnam, the current transactions between residents and non-residents can be made freely; the capital flows in and out of Vietnamese territory in the forms of direct and indirect investment are done in compliance with the regulations on foreign investment in Vietnam and Vietnamese investment overseas. Accordingly, the SBV has issued various guiding documents on the forex management of these transactions.
Regarding the establishment of an international financial center in Vietnam, the SBV Governor mentioned a number of issues that need the attention and experience sharing from the relevant sides, such as: (i) First, it is necessary to clearly specify the scope and operations of the financial institutions in the international financial center in order to develop appropriate management mechanisms and policies; (ii) Second, those mechanisms need to ensure full compliance with Vietnam's international commitments in the finance and banking sector. The SBV Governor further emphasized that this is a matter that needs to be thoroughly studied, and needs governance solutions from many Ministries and agencies. The SBV Governor expressed her hope that, in the coming time, the relevant sides would maintain the communication channels and continue to conduct comprehensive researches on the related contents; ensure the consistency with the economic conditions and situation in Vietnam.
The Prime Minister speaks at the Seminar
Toward the end of the Seminar, Prime Minister Pham Minh Chinh expressed high acknowledgement for the interest of the banks and the investment funds in the financial center plan in Vietnam. The Prime Minister agreed with the proposal of establishing a Working Group to study and advise the Government on the development of a financial center in Vietnam. This Working Group would be co-led by Dr. Philipp Rösler, former German Vice Chancellor, former member of the WEF Managing Board, and Honorary Consul of Vietnam in Switzerland, together with Mr. Nguyen Chi Dzung, Minister of Planning and Investment, and Mr. Phan Van Mai, Chairman of Ho Chi Minh City People's Committee.
Prime Minister Pham Minh Chinh, SBV Governor Nguyen Thi Hong, and representatives of Vietnamese commercial banks attending WEF 2024 in Davos take a group photo
Le Hang