Vietnam's central bank required to consider proposals on Basel III application

By Vietnam News Agency
Wed, April 2, 2025 | 12:10 am GMT+7

Prime Minister Pham Minh Chinh has directed the State Bank of Vietnam (SBV) to consider commercial banks’ proposals on implementing Basel III international banking standards.

The Ministry of Finance drafts Basel III standards to be applied in international financial centers from January 1, 2026. Photo courtesy of vnbusiness.vn.

The Ministry of Finance drafts Basel III standards to be applied in international financial centers from January 1, 2026. Photo courtesy of vnbusiness.vn.

The direction is under the newly-issued Prime Minister's Directive 09/CT-TTg on the tasks and solutions of state-owned enterprises (SOEs) to contribute to the Government’s double-digit economic growth target.

Under the directive, the PM has also asked the SBV to study and implement banks’ recommendations on sandboxing applications with the spirit of creating space for creativity and evaluating effectiveness.

The SBV must also direct commercial banks to continue to reduce costs, increase the application of technology, simplify administrative procedures and review and restructure the organizational apparatus.

Commercial banks must be willing to share part of their profits by reducing lending interest rates in the spirit of ‘harmonized benefits and shared risks’, the PM noted.

He has required banks to promote credit more promptly and more effectively, especially for projects and sectors that are economic growth drivers, including digital transformation and green growth, while ensuring the safety of banking operations.

In addition, it is necessary to continue researching and implementing preferential credit packages to develop social housing and create favourable conditions for young people under 35 years old to buy social housing.

As for the application of Basel III standards, the Ministry of Finance has previously made public a draft resolution on the establishment of international financial centers in Vietnam, asking for comments. Under the draft, the ministry expects Basel III will be applied in the centers from January 1, 2026.

However, the SBV responded that there is no practical basis for applying Basel III international standards in the centers from the proposed date.

The SBV believes that the roadmap for applying Basel III at the financial centers needs to be consistent with the roadmap applied to commercial banks and branches of foreign banks in the country.

The central bank suggests that in case of a need for immediate application, the ministry should clearly stipulate that the roadmap for applying the Basel III banking standards for foreign investors will be implemented in the financial centres from January 1, 2026 and this is considered a condition for granting an establishment licence in the centers.

Late last year the SBV also proposed adjusting the minimum capital adequacy ratio of banks from the current 8% to 10.5% to update regulations according to Basel III standards and to suit the specific operations of Vietnamese banks.

In Vietnam, the banking system is moving towards applying Basel III standards to improve capital quality and liquidity, which helps create a foundation for a stable banking system that can recover from crises while minimizing systemic risks.

Comments (0)
  • Read More
Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Over $15.6 billion in investment capital was committed for the northern port city of Hai Phong on Tuesday, a record high.

Industries - Tue, July 15, 2025 | 11:12 pm GMT+7

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda Vietnam (HVN) reported a 10% year-on-year increase in motorcycle sales to nearly 2.3 million units in fiscal year 2025, which ended on March 31, according to the company’s annual report.

Companies - Tue, July 15, 2025 | 5:42 pm GMT+7

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

VN-Index, which represents the Ho Chi Minh Stock Exchange, dropped by 9.77 points to 1,460.8 on Tuesday, ending its seven-session gaining streak.

Finance - Tue, July 15, 2025 | 5:13 pm GMT+7

UPS eyes opportunities in Vietnam's free trade zone, airport projects

UPS eyes opportunities in Vietnam's free trade zone, airport projects

Leading global shipping and logistics firm UPS is eyeing business opportunities at the Danang city-based free trade zone and the Long Thanh International Airport in Dong Nai province.

Economy - Tue, July 15, 2025 | 3:58 pm GMT+7

Vietnam PM asks Marubeni to expand investment in gas-fired, offshore wind power

Vietnam PM asks Marubeni to expand investment in gas-fired, offshore wind power

Marubeni should expand its activities in Vietnam in the fields of gas-fired and offshore wind power, export of electricity to ASEAN countries, and development of AI and big data, said Prime Minister Pham Minh Chinh.

Economy - Tue, July 15, 2025 | 12:21 pm GMT+7

Vietnam’s wood pellet industry needs production standardization to meet global demand: experts

Vietnam’s wood pellet industry needs production standardization to meet global demand: experts

Businesses should invest in developing dedicated raw material zones to reduce the Vietnamese wood pellet industry’s reliance on secondary supply sources and ensure compliance with legality and sustainability standards, said an expert.

Economy - Tue, July 15, 2025 | 9:18 am GMT+7

Riding out tariff turbulence, investment funds in Vietnam report strong growth gains

Riding out tariff turbulence, investment funds in Vietnam report strong growth gains

Many equity funds in Vietnam have posted strong growth returns, with gains exceeding 30% since the market’s April 10 trough in 2025, data collected by The Investor shows.

Finance - Tue, July 15, 2025 | 9:00 am GMT+7

Singapore supports businesses, workers amid US tariff pressures

Singapore supports businesses, workers amid US tariff pressures

The Singapore Economic Resilience Taskforce (SERT) has announced measures to help Singapore companies adapt to a new U.S. tariff.

Southeast Asia - Mon, July 14, 2025 | 10:11 pm GMT+7

Malaysia makes efforts to minimize US tariff’s impacts

Malaysia makes efforts to minimize US tariff’s impacts

Malaysia’s top export to the U.S. - electronics and electrical products - will face the biggest brunt of a 25% tariff hike that the U.S. has imposed on the country, said head of School of Business under the Monash University Malaysia Prof Nafis Alam.

Southeast Asia - Mon, July 14, 2025 | 10:08 pm GMT+7

Thailand faces $6.14 bln export loss if US tariff is 25-36%: forecast

Thailand faces $6.14 bln export loss if US tariff is 25-36%: forecast

Thailand could lose up to THB200 billion ($6.14 billion) in export value this year if the U.S. imposes new tariffs ranging from 25-36% on Thai goods, according to a forecast from the University of the Thai Chamber of Commerce (UTCC).

Southeast Asia - Mon, July 14, 2025 | 10:06 pm GMT+7

Southern Vietnam province Tay Ninh okays many high-tech agri projects

Southern Vietnam province Tay Ninh okays many high-tech agri projects

Tay Ninh authorities recently granted in-principle approvals to a string of high-tech agricultural projects, paving the way for significant development opportunities in the southern province.

Industries - Mon, July 14, 2025 | 10:00 pm GMT+7

Construction ministry backs $1.95 bln port project in southern Vietnam

Construction ministry backs $1.95 bln port project in southern Vietnam

Geleximco Group's Cai Mep Ha container and general port project aligns with the national master plan and the master plan for Vietnam’s seaport system, according to the Ministry of Construction.

Infrastructure - Mon, July 14, 2025 | 5:09 pm GMT+7

Electric vehicles in Vietnam: 7 years of development and double-digit growth prospect

Electric vehicles in Vietnam: 7 years of development and double-digit growth prospect

The shift toward greener mobility has been underway in Vietnam and the local electric vehicle (EV) market is expected to see double-digit growth thanks to favorable policies, infrastructure development, automakers’ efforts, and a young consumer base.

Economy - Mon, July 14, 2025 | 4:46 pm GMT+7

HCMC apartment prices continue to rise as supply hits 10-year low in H1

HCMC apartment prices continue to rise as supply hits 10-year low in H1

The apartment market in former Ho Chi Minh City continued to see rising prices since the total supply in the first six months of 2025 hit the lowest since 2015, according to real estate consultancy firm DKRA.

Real Estate - Mon, July 14, 2025 | 4:03 pm GMT+7

Buyer secures Sunshine Group’s Hanoi shophouse at 15% lower than market price via livestream

Buyer secures Sunshine Group’s Hanoi shophouse at 15% lower than market price via livestream

A buyer successfully secured a shophouse at property major Sunshine Group’s Noble Palace Tay Thang Long project in Hanoi for VND11 billion ($421,295), VND2.5 billion or 15% below market value, during a bidding livestream on the NobleGo platform held last Friday evening.

Companies - Mon, July 14, 2025 | 1:37 pm GMT+7

Vietnam’s major rice exporter Vinafood 1 tasked with developing mega agri-logistics hub

Vietnam’s major rice exporter Vinafood 1 tasked with developing mega agri-logistics hub

Vinafood 1, Vietnam's top rice exporter, has been asked to develop an integrated hub for agricultural trade, logistics, warehousing, exports, customs, banking, irradiation, and research and development activities.

Industries - Mon, July 14, 2025 | 12:19 pm GMT+7