Vietnam Banking Capital Rules 2025: Basel III Standards and New Requirements
HÀ NỘI — From September 15, 2025, commercial banks and foreign bank branches in Vietnam are required to maintain a minimum capital adequacy ratio (CAR) of 8 percent, as outlined in Circular 14/2025/TT-NHNN issued by the State Bank of Vietnam. These changes, known as the Vietnam banking capital rules 2025, represent a major step toward aligning the nation’s financial system with Basel III standards set by the Basel Committee on Banking Supervision.
The updated framework sets clear requirements: banks must ensure a Common Equity Tier 1 (CET1) ratio of 4.5 percent and a Tier 1 Capital ratio of 6 percent. For banks with subsidiaries, consolidated ratios must also be met to maintain compliance.
In addition, the new rules gradually increase the Capital Conservation Buffer (CCB) and the Countercyclical Capital Buffer (CCyB). The CCB will rise from 0.625 percent in the first year to 2.5 percent from year four onward, raising the consolidated CAR requirement from 8.625 percent to 10.5 percent. Similarly, the CET1 ratio (including CCB) will move up to 7 percent, while the Tier 1 Capital ratio will reach 8.5 percent after four years.
One of the most notable provisions in the Vietnam banking capital rules 2025 is that banks can only distribute profits in cash once they have fully met these capital thresholds. This ensures that institutions strengthen their capital base before rewarding shareholders.
To meet these requirements, many banks have already begun raising charter capital through share issuance, profit retention, or debt instruments to supplement Tier 2 capital. By the end of June 2025, the total charter capital across 29 banks had reached VNĐ879.35 trillion, marking a 6.6 percent increase compared to 2024. The top five banks — Vietcombank, VPBank, Techcombank, BIDV, and MB — now account for 41 percent of total charter capital.
The Vietnam banking capital rules 2025 not only reinforce financial stability but also set the stage for sustainable credit growth, stronger risk management, and closer alignment with international banking standards.
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