HCMC – Vietnam is introducing a series of new economic regulations this December, covering settlement of bad debt, operations of debt management companies, rules on opening offshore foreign-currency accounts, and tighter financial safety standards for securities firms.
New rules on collateral recovery
Government Decree 304/2025, effective December 1, sets stricter conditions for seizing collateral, especially assets that are a borrower’s sole residence or essential work tools.
In such cases, lenders must set aside a compensation amount equivalent to six to twelve months of minimum wage. The measure aims to improve transparency in bad debt handling and reduce credit risk in the banking system.
Updated framework for debt management companies
Circular 31/2025, also in effect from December 1, clarifies the scope of activities for debt management companies owned by credit institutions. These cover bad debt resolution, collateral management, and debt trading.
Credit institutions are allowed to buy debt only when their non-performing loan ratio is below 3%. They must also establish internal procedures and submit them to the State Bank of Vietnam for oversight. Existing companies have 12 months to meet compliance requirements.
Offshore foreign-currency accounts permitted under specific conditions
From December 15, Circular 39 allows organizations to open foreign-currency accounts abroad under 12 specific cases. These fall into three groups: credit institutions, economic organizations, and other entities.
Most eligible cases relate to overseas branches or representative offices, foreign borrowing arrangements, or contractual obligations with international partners.
Modernized regulations on charter capital and treasury shares
Also taking effect on December 15, Circular 96/2025 abolishes Circular 19/2003 to update the legal framework governing charter capital and treasury shares. The revision aligns regulations with current laws and aims to increase transparency in corporate financial management.
Stricter financial safety standards for securities firms
Circular 102/2025, effective December 15, revises financial safety indicators for securities companies. It introduces a mechanism for calculating market risk and adjusts deductions and collateral assessments.
Firms will have six months to address any shortfall if their available capital ratio falls below 180%. The new rules are intended to strengthen risk management and support market stability.
