Vietnam PM urges banks to implement Basel III

Vietnamese Prime Minister Phạm Minh Chính has instructed the State Bank of Vietnam (SBV) to consider commercial banks’ proposals on adopting Basel III international banking standards. The directive is part of efforts to support the government’s double-digit economic growth target. Chính also urged banks to reduce costs, adopt technology, and simplify administrative processes. Banks are encouraged to lower lending interest rates to support businesses. The SBV will explore banks’ recommendations on sandbox applications to foster innovation. While the Ministry of Finance proposed applying Basel III at financial centres by January 2026, the SBV suggested a phased implementation aligned with local banks’ readiness. Vietnam’s banking sector is gradually shifting to Basel III standards to enhance capital quality and mitigate systemic risks.