Major Regulatory Updates in Vietnam Effective May 2025 for Businesses

Major regulatory updates in Vietnam, effective May 2025, cover foreign ownership in finance, fuel price control, statistical reform, and economic classification.

Vietnam will implement several impactful policy changes beginning May 2025, marking a step towards the country’s broader economic reform and regulatory modernization agenda.

These updates address foreign ownership in financial institutions, statistical classification of economic units, and fuel price and supply controls. Legislative instruments involved include Decree 69/2025/ND-CP, Circular 07/2025/TT-BKHDT, and Circular 18/2025/TT-BCT, each aligning with national strategies to bolster transparency, investment stability, and supply chain resilience.

Decree 69/2025/ND-CP: Expanding foreign participation in financial institutions

Decree 69/2025/ND-CP amends provisions of Decree 01/2014/ND-CP, governing foreign investment in credit institutions. Effective May 19, 2025, it offers a new structure to foreign ownership limits (FOL).

Standard caps

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The most prominent change is in the treatment of FOL. While the standard caps remain at 30 percent for commercial banks and 50 percent for non-bank credit institutions, an exception has been carved out for institutions undergoing compulsory transfers. In these strategic cases, typically involving distressed entities classified under special control by the State Bank of Vietnam (SBV), foreign investors may own up to 49 percent, provided they receive approval from the Prime Minister.

Ownership concentration prevention

The decree imposes clear boundaries to prevent ownership concentration. Foreign investors acquiring more than the allowed percentage must reduce their holdings within six months to align with regulatory limits. Furthermore, only treasury shares repurchased before January 1, 2021, are eligible for sale to foreign investors, in accordance with Decree 155/2020/ND-CP.

More precise definitions

In terms of definitions, Decree 69 brings precision. Foreign individuals are now defined strictly as those holding foreign citizenship, while foreign organizations refer to legal entities established under non-Vietnamese law. Notably, investment vehicles such as closed-end funds with foreign ownership exceeding 49 percent are excluded from the definition of foreign organizations for the purpose of FOL computation.

These reforms are aligned with Article 185.1(n) of the 2024 Credit Institutions Law and are expected to benefit “acquiring banks” such as Military Bank, HDBank, and VPBank, which recently took over distressed institutions under SBV’s restructuring plan.

Circular 07/2025/TT-BKHDT: Unified statistical classification system

Issued by the Ministry of Planning and Investment, Circular 07/2025/TT-BKHDT takes effect May 1, 2025. It introduces a systematic two-tier classification of economic units:

• Level 1 includes four categories: State-owned, Collective, Private, and Foreign Direct Investment (FDI) economies; and
• Level 2 consists of 17 subtypes, each coded with two digits aligned with their Level 1 category.

The classification of a business is determined by three key criteria: its legal entity status, the structure of capital ownership, and its functional and operational attributes. To maintain statistical integrity and avoid overlaps, each economic unit is permitted to be classified under only one category. This one-to-one classification method ensures clarity in government reporting and simplifies compliance for businesses.

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The circular mandates universal adoption. All organizations, businesses, and individuals involved in the collection, use, or analysis of economic data must apply the new framework. This includes government agencies, statistical departments, financial auditors, and investors using national economic data for planning and evaluation purposes.

By enforcing uniformity in classification, the policy will enhance Vietnam’s ability to monitor economic trends, design evidence-based policy, and provide investors with more reliable sectoral data. As a result, businesses operating in Vietnam should update internal systems and reporting structures to align with this classification, especially those involved in strategic planning, market analytics, and compliance.

Circular 18/2025/TT-BCT: Modernizing petroleum trade and pricing regulation

Circular 18/2025/TT-BCT, issued by the Ministry of Industry and Trade (MOIT) on March 13, 2025, is set to take effect in May 2025 and marks a significant overhaul of Vietnam’s regulatory approach to petroleum trading. The circular refines the mechanisms for pricing transparency, reporting, and national supply assurance. Major regulatory adjustments include:

Base price calculation

MOIT will now officially calculate and publish base prices for petroleum products, such as diesel, biopetrol, kerosene, and mazut, based on a comprehensive cost input structure. These inputs include import prices, logistics costs, tax rates, and a reasonable profit margin. The Ministry of Finance will review and provide feedback on the cost components before final prices are published.

Quarterly reporting obligations

Petroleum traders using or leasing storage must report usage data quarterly to MOIT and provincial Departments of Industry and Trade by the 10th of the first month of the next quarter. They include information on inventory levels, storage usage, and any lease arrangements. Failure to comply may result in administrative sanctions or the suspension of trading licenses; and

Online certification system

Traders can now apply for or update eligibility certificates for petroleum distribution and retail via online or postal systems.

To ensure energy security, MOIT will also impose annual procurement or import quotas for petroleum distributors. Companies are required to submit their planned supply volumes by November 30 each year. MOIT will then issue national supply allocations by December 31. If the national supply forecast shifts significantly, MOIT is authorized to adjust or redistribute quotas and mandate specific import schedules. Traders must comply or risk having their trading eligibility revoked.

Implications for investors and businesses

Each of these regulations has practical consequences for businesses operating in Vietnam:

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• Foreign investors in finance must reassess ownership strategies and conduct detailed compliance audits. Mergers & Acquisitions (M&A) involving distressed banks may offer expanded FOL options but require close alignment with SBV and government policies;
• Energy distributors need compliance teams to manage quarterly reporting and certification updates. Investment in digital infrastructure will be crucial for aligning with the new reporting framework; and
• Market analysts and planners benefit from the statistical reclassification, which provides more accurate data segmentation for performance tracking and forecasting.

By clearly outlining ownership boundaries, certification procedures, and classification structures, the reforms reduce administrative ambiguity and provide strategic clarity for businesses.

In brief

The policy changes taking effect in Vietnam from May 2025 represent a deliberate and strategic advancement in economic governance. Decree 69 introduces a flexible yet disciplined approach to foreign participation in finance. Circular 07 establishes a modern, codified statistical system, while Circular 18 strengthens control over the fuel supply chain and price transparency.

Collectively, these measures aim to support Vietnam’s objectives of economic liberalization, administrative modernization, and global investment integration. Businesses, particularly those in finance, energy, and statistical research, should update their internal policies, compliance programs, and strategic plans to align with this new regulatory environment.

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