Decree 94/2025: Framework for Controlled Testing Mechanisms in Banking in Vietnam

On April 9, 2025, the Government promulgated Decree No. 94/2025/ND-CP, which provides regulations on the Regulatory Sandbox Mechanism in the Banking Sector. This Decree shall take effect from July 1, 2025. This marks a breakthrough initiative aimed at promoting innovation and modernization within the Vietnamese banking industry. It seeks to create a flexible legal framework that allows fintech solutions, such as credit scoring, Open APIs, and peer-to-peer (P2P) lending, to be tested under strict regulatory supervision. Below are some key highlights from Decree 94/2025: framework for controlled testing mechanisms in banking in Vietnam, as updated by Viet An Law Firm.

Eligible fintech solutions for participation in the Regulatory Sandbox

Decree No. 94/2025/ND-CP provides for the Regulatory Sandbox Mechanism in the banking sector (hereinafter referred to as the “Sandbox Mechanism”) with respect to the deployment of new products, services, and business models through the application of technological solutions.

The financial technology solutions (Fintech solutions) eligible to participate in the Sandbox Mechanism include:

• Credit scoring: a solution that applies the information technology system of credit institutions, foreign bank branches, or Fintech companies to assess the creditworthiness of an individual or organization, thereby supporting the credit decision-making process of the credit institution or foreign bank branch.
• Data sharing via Open Application Programming Interface (Open API): a standardized set of APIs that can be utilized by the computer systems of multiple credit institutions, foreign bank branches, Fintech companies, and other third parties to send service requests to the credit institution or foreign bank branch systems sharing the Open API.
• P2P (Peer-to-peer) lending: a solution applying information technology provided by peer-to-peer lending companies to connect information and facilitate contract conclusion on a digital platform between the borrower and lender. The currency used in the peer-to-peer lending solution is the Vietnamese Dong.

The objectives of the Regulatory Sandbox Mechanism are to:

• Promote innovation and modernization in the banking sector, thereby realizing the goal of financial inclusion for individuals and businesses in a transparent, convenient, safe, efficient manner with low costs.
• Establish a testing environment to evaluate the risks, costs, and benefits of Fintech solutions; support the development of Fintech solutions suitable for market demands, legal frameworks, and regulatory requirements; and limit risks to customers when using Fintech solutions provided by organizations participating in the Regulatory Sandbox.
• Use the practical results of Fintech solution testing as a basis for competent state agencies to study, develop, and perfect relevant legal frameworks and regulatory provisions if necessary.

Timeframe and scope of fintech solution testing

Pursuant to Article 6 of Decree No. 94/2025/ND-CP regulating the Regulatory Sandbox Mechanism in the banking sector, the timeframe and scope for testing Fintech solutions are as follows:

Time

The testing period for Fintech solutions is up to 2 years, depending on the specific solution and sector, counted from the date the State Bank of Vietnam issues the Certificate of participation in the Regulatory Sandbox Mechanism. The testing period may be extended as prescribed.

The validity of the Certificate of participation in the Regulatory Sandbox Mechanism shall not exceed the validity period (if any) of the establishment license or business registration certificate of the participating organization.

Space

The implementation of testing Fintech solutions is limited to the territory of Vietnam, and cross-border testing is not permitted.

Scope of Testing

Organizations participating in the Regulatory Sandbox Mechanism are only allowed to provide Fintech solutions within the scope specified in the Certificate of Participation.

Depending on the Fintech solution and specific proposals submitted by the organization in the Registration dossier for participation, and the opinions of relevant ministries and the State Bank, the scope of testing for the Fintech solution shall be determined in the Certificate of participation.

Notably, Decree 94/2025/ND-CP also imposes important restrictions on peer-to-peer lending activities. Peer-to-peer lending companies are only permitted to offer this solution within the licensed testing scope, are prohibited from self-guaranteeing customer loans, and are not allowed to provide peer-to-peer lending solutions to pawnshop companies.

This regulatory sandbox mechanism facilitates the development of innovative financial models while protecting consumers and the financial system from potential risks.

Registration and issuance of certificates for participation in the regulatory sandbox mechanism for credit scoring and data sharing via Open Application Programming Interface (Open API)

According to Section 1, Chapter II of Decree 94/2025/ND-CP, the provisions on registration and issuance of certificates for participation in the regulatory sandbox mechanism for credit scoring and data sharing via Open API are as follows:

Conditions for Participation in the Regulatory Sandbox Mechanism

For Credit Institutions

Credit institutions that are not under special control according to the Law on Credit Institutions, and foreign bank branches, may be considered for the issuance of Certificates of Participation in the Regulatory Sandbox Mechanism when the Fintech solution meets the following criteria:

• The solution contains technical and operational content for which current legal regulations have not provided specific and clear guidance for implementation and application.
• The solution is innovative, bringing benefits and added value to service users in Vietnam, especially solutions supporting and promoting the goal of financial inclusion.
• The solution has designed and established a risk management framework to minimize negative impacts on the banking system and banking-monetary-foreign exchange operations; has developed plans to handle and mitigate risks arising during the testing process; and has established plans to protect consumer rights.
• The solution has been fully reviewed and evaluated by the participating organization in the Regulatory Sandbox Mechanism in terms of operations, functions, utility, and effectiveness;
• The solution is feasible to be commercialized in the market after completing the testing process.

For Fintech Companies

A Fintech company is an organization that is not a credit institution or a foreign bank branch, and has a legal establishment license or business registration within the territory of Vietnam; independently provides Fintech solutions or cooperates with credit institutions or foreign bank branches to offer Fintech solutions to the market.
A Fintech company may be considered for issuance of a Certificate of Participation in the Regulatory Sandbox Mechanism when its Fintech solution meets the criteria stipulated in Clause 1, Article 8 of Decree 94/2025/ND-CP and satisfies the following conditions:

It is a legal entity established and operating legally in Vietnam; it is not in the process of division, separation, merger, consolidation, transformation, dissolution, or bankruptcy as prescribed by law;

The legal representative, General Director (Director) must hold at least a university degree in one of the fields of economics, business administration, law, information technology, and have at least 2 years of experience as a manager or executive in an organization within the finance and banking sector; and must not belong to any prohibited subjects as stipulated by law.

Application dossier components

The application dossier for participation in the Regulatory Sandbox Mechanism regarding credit scoring and data sharing via Open API includes documents as prescribed in Article 9 of Decree 94/2025/ND-CP.

Procedures for registering to participate in the Regulatory Sandbox Mechanism

• Submit the application dossier directly or via postal service to the One-Stop Department of the State Bank of Vietnam.
• Within 5 working days: The State Bank of Vietnam shall acknowledge receipt of the complete application dossier or request additional documents.
• Within 90 days from the date of acknowledgment, The State Bank of Vietnam shall coordinate with relevant Ministries to appraise the dossier.
• After the appraisal period ends: The State Bank of Vietnam shall issue the Certificate of Participation in the Regulatory Sandbox Mechanism.

Registration and issuance of certificate of participation in the regulatory sandbox mechanism for Peer-to-Peer Lending

According to Section 2, Chapter II of Decree 94/2025/ND-CP on the regulatory sandbox mechanism in the banking sector, the provisions on registration and issuance of the certificate of participation in the regulatory sandbox mechanism for peer-to-peer lending are as follows:

Conditions for participation in the Regulatory Sandbox Mechanism

The peer-to-peer lending solution will be considered for issuance of the Certificate of Participation in the Regulatory Sandbox Mechanism when the solution meets the criteria prescribed in Clause 1, Article 8 of Decree 94/2025/ND-CP and the following additional criteria:

• Measures are in place to identify and manage the maximum outstanding debt of a single borrower within the peer-to-peer lending solution provided by the company; to report and retrieve real-time information about borrowers from the Vietnam National Credit Information Center to ensure compliance with the regulations on maximum outstanding debt for a single borrower within the peer-to-peer lending solution provided by the company and the maximum outstanding debt for a single borrower across all peer-to-peer lending solutions participating in the Regulatory Sandbox;
• Disbursement, repayment of loans, interest, and fees for customer transactions on the peer-to-peer lending platform must be conducted through the customer’s payment account at a credit institution, foreign bank branch, or the customer’s e-wallet at a payment intermediary service provider;
• Measures are in place to ensure that the contract term between the borrower and lender using the peer-to-peer lending solution participating in the Regulatory Sandbox does not exceed two years.

A Fintech company registering to pilot a peer-to-peer lending solution will be considered for issuance of the Certificate of Participation in the Regulatory Sandbox if the solution meets the criteria prescribed in Clause 1, Article 11 of Decree 94/2025/ND-CP and the following specific conditions:

• It is a legally established and operating enterprise in Vietnam; it is not a foreign-invested enterprise; it is not undergoing division, separation, merger, consolidation, transformation, dissolution, or bankruptcy under applicable laws;
• The legal representative or CEO (Director) of the company is a Vietnamese citizen; has no criminal record; has not been administratively sanctioned in the fields of finance, banking, or cybersecurity; is not concurrently an owner or manager of businesses operating in financial services, banking, pawnshops, or multi-level marketing;
• The legal representative or CEO (Director) must hold a university degree or higher in economics, business administration, law, or information technology and have at least 2 years of management experience in finance or banking, and must not be subject to any legal prohibitions.
• Meets standards on human resources, infrastructure, and technical requirements for the digital platform deploying the peer-to-peer lending solution, ensuring minimum requirements are satisfied.

Application dossier components

The application dossier for participation in the Regulatory Sandbox Mechanism for peer-to-peer lending includes documents as prescribed in Article 12 of Decree 94/2025/ND-CP. Please contact legal consulting services for detailed guidance on dossier preparation.

Procedure for registration to participate in the Regulatory Sandbox

The procedure for registration to participate in the regulatory sandbox is similar to the procedure for registration to participate in the regulatory sandbox for credit scoring and data sharing via Open API.

The above is an update on some notable contents of Decree 94/2025: framework for controlled testing mechanisms in banking in Vietnam. If you have any related questions or need in-depth consulting services, please contact Viet An Law Firm for the best support!