Methods of Payment

Most U.S. firms exporting to Vietnam conduct business using various methods of payment, such as letters of credit (L/C’s), drafts, and wire transfers. Vietnamese companies often resist the use of confirmed L/Cs because of the additional cost and collateral requirements from banks. Local companies with acceptable credit risk, including major private enterprises and State-Owned Enterprises (SOEs), can usually obtain credit facilities, including import financing from both domestic and foreign banks. For these importers, confirmation of L/C’s opened by their foreign bank may not be required, and faster payment can be expected. At present, L/C’s up to 60, 90, or 120 days are most common. Foreign banks have greater capacity, but costs will be lower if the L/C is opened by one of the four state-owned banks or the 31 private joint stock commercial banks.  

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

Banking Systems  

The central bank, the State Bank of Vietnam (SBV), is the main financial regulatory agency. The SBV supervises the banking sector, including one policy bank, the  Vietnam Bank for Social Policies, four majority state-owned commercial banks (Vietcombank, BIDV, Vietinbank, and Agribank), 31 joint-stock (private) banks, four joint-venture banks, 52 representative offices of foreign banks, 49 branches of foreign banks, 16 financial companies, 10 financial leasing companies, and 9 wholly owned foreign banks. The SBV is not an independent body like the U.S. Federal Reserve, and it continues to operate under government oversight.

The International Monetary Fund, the World Bank, and other international donors, including the United States, are assisting Vietnam with the implementation of financial reforms to help ensure stability and promote the effectiveness of the banking system in Vietnam. The reform programs focus on three main areas:  

Restructuring and strengthening joint-stock banks and state-owned commercial banks (SOCBs), including equitization and improved governance;

Enhancing the regulatory framework, transparency, and risk management to align with international standards (notably Basel II and moving toward Basel III compliance);

Promoting digital transformation and modernization of the interbank market, as well as the adoption of international accounting standards and external audits.

The SBV has recently restructured its organizational apparatus to streamline operations and improve efficiency, as stipulated in Decree No. 26/2025/ND-CP issued in February 2025. The SBV is also intensifying inspections and supervision of banks under its jurisdiction, with a focus on digital transformation and financial inclusion.

In 2025, Vietnam raised the foreign ownership cap in certain domestic banks from 30% to 49%, particularly for banks undergoing restructuring, to attract foreign investment and strengthen the sector. This policy aims to boost capital, technology transfer, and governance in the banking industry.

Vietnam’s banking sector continues to expand rapidly, driven by strong digitalization, stable financial indicators, and increased international integration. In Q1 2025, credit growth reached 6.2% year-on-year, and the non-performing loan (NPL) ratio remained below 2%, reflecting improved credit quality. The sector’s outlook remains stable, with projected credit growth of 15–16% for 2025.

Financial inclusion is improving, but a significant portion of the population remains underbanked. As of 2025, about 70–75% of adults have access to at least basic banking services, while 25–30% remain unbanked, reflecting ongoing potential for retail banking expansion.

Foreign Exchange Controls

Vietnam maintains exchange control mechanisms designed to limit foreign currency outflows. However, the Law on Investment allows foreign investors to purchase foreign currency at authorized banks to finance current and capital transactions and other allowed transactions. The regulatory environment is evolving, with new policies under consideration to further liberalize foreign exchange as part of Vietnam’s strategy to establish itself as an international financial center.  

While foreign exchange shortages were a concern in the past, especially during periods of trade deficits, the situation has stabilized. The availability of foreign exchange has improved in recent years due to a strong current account surplus–reaching 6.6% of GDP in 2024–and robust foreign direct investment inflows.  

Foreign businesses can remit in hard currencies all profits, shared profits, losses from joint ventures, income from legally owned capital, properties, and services and technology transfers. Foreigners also can remit royalties and fees paid for the supply of technologies and services, principal and interest on loans obtained for business operations, investment capital, and other assets under their legitimate ownership, provided all tax and financial obligations to the Vietnamese government have been fulfilled. As of 2025, the SBV’s monetary policy endeavors to maintain overall financial stability. While the SBV limits capital flows, the Government of Vietnam allows for exchange rate adjustments in the 2–3% range (and potentially up to 5%), depending on economic conditions and external shocks.

U.S. Banks & Local Correspondent Banks

There are five U.S. banks and financial institutions operating in Vietnam. Citibank and Far East National Bank have branches, Wells Fargo and Visa International have representative offices, and JP Morgan Chase has both a branch and a representative office.

Most state-owned banks–Vietcombank, Vietinbank, Bank for Agriculture, and the Bank for Investment and Development of Vietnam (BIDV)–have active relationships with U.S. banks. Several joint-stock banks also have correspondent relationships, such as the Asian Commercial Bank (ACB), East Asia Bank (EAB), Vietnam Export-Import Bank ( Eximbank– no relation to the U.S. EXIM Bank), the Maritime Bank (MSB), Saigon Commercial  Bank (SCB), Saigon Thuong Tin Commercial Bank (Sacombank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), and the Vietnam Bank for Prosperity (VP Bank).

Vietnam’s banking sector continues to gradually open to foreign participation. In May 2025, the government raised the foreign ownership cap for certain private banks involved in restructuring distressed institutions from 30% to 49%, further encouraging international partnerships and capital inflows. This move is expected to strengthen the sector and expand opportunities for U.S. and other foreign banks seeking deeper engagement in Vietnam.

For additional information, visit the U.S. Department of State Investment Climate Statements website.