As we said in our last report “after Vietnam secured arguably the best US tariff deal amongst all ASEAN nations we now wait to measure the true economic impact …” and it seems we already have some data available to quantify that impact. In the short-term Vietnam will indeed take a sizeable hit … but not for long.
Capital Adequacy Standards
Aligning Vietnam’s banking system with Basel III standards, back on 30th August the State Bank of Vietnam (SBV) introduced Circular 14/2025/TT-NHNN, and began implementing it on 15th September. This mandates that all commercial banks, foreign bank branches, both as standalone institutions or as consolidated banking groups, must ensure a minimum Capital Adequacy Ratio (CAR) of 8%. Tier 1 capital cannot be less than 4.5%, with total Tier 1 capital needing to meet 6%. Two buffers were also introduced; a Counter-Cyclical Capital Buffer (CCyB) and a Capital Conservation Buffer (CCB) to be phased in gradually over four years commencing at 0.625% and culmin...
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