1. What This Document Is
The Government of Vietnam adopted Government Decree 316/2026/NĐ-CP on August 11, 2026. The document amends and supplements the effective Government Decree 135/2025/NĐ-CP, which regulates the financial regime of the banking sector.
The act was signed by Deputy Prime Minister Nguyễn Văn Thắng pursuant to laws on credit institutions, management of state capital, enterprises, and accounting. The official effective date for the regulations is set for October 1, 2026.
2. Who Is Affected
The new rules apply to a broad list of participants in Vietnam's financial market. The scope of regulation covers commercial banks, non-bank credit institutions, and foreign bank branches.
The decree also extends to credit institutions with state participation, including institutions with 100 percent state ownership of charter capital. Specific provisions regulate cooperative banks, microfinance institutions, and people's credit funds.
3. Key Changes and Requirements
Regarding revenues, Clause 1 of Article 1 establishes the accounting treatment for trading securities. Commercial banks, non-bank credit institutions, and foreign bank branches must recognize revenues from such operations in compliance with accounting legislation.
Significant changes affect the distribution of after-tax profits. Deductions to the financial reserve fund are set at 10 percent, with the maximum balance of this fund not exceeding 25 percent of charter capital. No more than 40 percent of profit can be allocated to the investment development fund, while the aggregate volume of allocations to the charter capital reserve fund and the investment development fund cannot exceed 50 percent pursuant to Article 25 of the Law on Management and Investment of State Capital in Enterprises. The maximum balance of the investment development fund is limited to the amount of the institution's charter capital.
The establishment of bonus and welfare funds is strictly linked to efficiency ratings. Category A institutions may allocate up to 3 months of actual salary for these purposes, category B up to 2 months, and category C up to 1 month. If a credit institution has not undergone an efficiency evaluation, allocations to bonus and welfare funds are not permitted at all.
Special conditions are established for share-based dividend distributions by institutions with state capital. The State Bank of Vietnam coordinates with the Ministry of Finance before submitting a proposal to the Prime Minister. Share dividend payments are permitted only for effectively performing entities that achieved a rating of category B or higher for two consecutive years, provided that their non-performing loan ratio remains strictly below 3 percent.
4. What Is Replaced and the Transition Period
Government Decree 316/2026/NĐ-CP takes effect on October 1, 2026, and amends Articles 13, 22, 23, 24, 25, 27, and 29 of Government Decree 135/2025/NĐ-CP.
Article 2 of the new act sets out a special transitional regime for undistributed profit. If profit for fiscal year 2024 was not distributed before October 1, 2026, its distribution must strictly follow the rules and norms of Decree 316/2026/NĐ-CP.
5. Fund Management and Financial Planning
Article 27 defines in detail the purposes of the created funds. The capital supplementary reserve fund serves to increase charter or allocated capital, while the financial reserve covers operating losses and property damage remaining after insurance payouts and compensation from liable parties.
Credit institutions and foreign bank branches must approve internal regulations on managing and utilizing funds established from net profit. Profitable organizations that have fully paid enterprise income tax are entitled to make provisional fund allocations directly during the fiscal year.
For wholly state-owned institutions, Article 29 sets strict planning deadlines. By July 31, they submit their financial plan for the upcoming year to the Ministry of Finance and the State Bank of Vietnam, and by March 1 of the planning year, they submit updated estimates for subsequent monitoring and categorization.