Last November, the State Bank has gathered opinions on the Draft replacing Decree No. 101/2012/ND-CP on non-cash payments (“the Draft”)[1], in which a noteworthy point is the regulation on the maximum capital contribution ratio of foreign investors in the field of intermediary payment services. Specifically, foreign investors may only own, directly or indirectly, no more than 49% of the charter capital of an intermediary payment service provider[2]. Such approach clearly demonstrates the State Bank’s intention to ensure the management right and sovereignty of Vietnam in the field of intermediary payment services, which is quite sensitive and may affect the national monetary policy, while showing its desire to create a business environment to safeguard the nation’s benefits and support the domestic business community.
Having received various opinions, the State Bank, in its latest announcement, has reassured technology investors, whereby the Draft to be submitted to the Government in June is expected to completely abolish the regulation on maximum ownership ratio of foreign investors in intermediary payment services providers. In the upcoming time, this new “open” approach is reckoned to exert a positive impact on the operation of fintech businesses in general since the intermediary payment sector currently accounts for the majority of market share of these businesses. Particularly, foreign investments will thereby be enabled to penetrate the Vietnamese market, hoping to catch the wave of technology development, and elevate fintech businesses, as well as giving wings to start-ups in this area. In the context where businessness are aiming for self-improvement of competitiveness in both regional and international markets, consumers would also benefit from the habit of using intermediary payment services. In addition, the State’s management of the intermediary payment services can still be guaranteed through specific regulations on security, infrastructure and technical conditions to prevent potential risks in payment activities relating to monetary security and yet still allow the ability to attract foreign investments.
[1] Drafted and published for the first time by the State Bank on November 6, 2019. Details at: https://www.sbv.gov.vn/webcenter/portal/vi/menu/fm/ddnhnn/lykdtvbqppl/ctlykdtvbqppl?leftWidth=20%25&dID=407000&showFooter=false&expired=true&showHeader=false&dDocName=SBV402149&rightWidth=0%25¢erWidth=80%25&_afrLoop=36198659834650095#%40%3F_afrLoop%3D36198659834650095%26centerWidth%3D80%2525%26dDocName%3DSBV402149%26dID%3D407000%26expired%3Dtrue%26leftWidth%3D20%2525%26rightWidth%3D0%2525%26showFooter%3Dfalse %26showHeader%3Dfalse%26_adf.ctrl-state%3D13c9jgqa82_51
[2] Article 29.2 of the Draft.
