Vietnam: 86 million bank accounts soon to be closed

Starting September 1, 2025, Vietnam will close over 86 million inactive or non-biometric bank accounts. A sweeping move that fits into the country’s digital transformation… and could directly affect expats, travelers, and freelancers.

Why this decision?

• Vietnam has nearly 200 million bank accounts opened.

• Many are inactive, dormant, or used fraudulently.

• To protect the financial system, the State Bank of Vietnam now mandates biometric authentication (via VNeID or chip-based ID card).

Result: only about 113 million personal accounts and 711,000 organizational accounts will remain active after the clean-up.

The introduction of biometrics and VNeID

To address these risks:

• Banks now require biometric authentication (fingerprint or facial recognition), linked to the VNeID (official digital identity) or chip ID card.

• Only accounts that are verified and compliant will stay open. This requires updating the data through branch visits or mobile apps, or linking the account to VNeID.

Consequence: a digital “spring cleaning”

After this sorting process:

• Of the nearly 200 million accounts, just around 113 million personal accounts and 711,000 business/organization accounts will remain.

• Roughly 86 million accounts, or 43 %, will be closed for inactivity, fraud risk, or lack of biometric authentication.

What to expect in Vietnam

• The banking sector aims to clean up its client database, boost trust, and prepare the ground for a digital expansion (e-payments, online services…).

• As of July 2025, fraud and loss cases reportedly dropped by more than 50 %, according to the State Bank.

• Individuals and businesses must comply to keep access to their accounts and online services.

Is Vietnam becoming a regional pioneer?

These policies make Vietnam one of Asia’s most advanced countries in integrating biometrics and digital identity into retail banking, similar to recent moves in Thailand.

Another step toward a “cashless” society

• Cashless payments are surging: in 2024, the value of digital transactions exceeded 26 times Vietnam’s GDP.

• A digital VAT (effective July 2025) encourages non-cash payments.

• Since biometrics started, fraud victims have dropped by 57 %.

In short, Vietnam is pushing hard toward a cashless society.

Who is affected?

• Accounts that were never used or are dormant.

• Accounts opened with outdated or invalid documents.

• Accounts lacking biometric authentication.

If you’re an expat, long-term traveler, or digital nomad, now’s the time to check your account status.

Expats, digital nomads, long-term travelers: beware!

• Non-residents and foreign residents must complete biometric verification. This often requires going to a branch with a valid passport or ID, depending on the account type.

• Check your account status in the banking app or contact your bank ASAP. If unsure, proactively update your ID and complete biometric verification in branch or via official channels.

Summary

Neglecting these obligations risks immediate account block or permanent closure, cutting off access to funds and banking services—even for foreigners.

What to do to avoid surprises

1. Contact your bank to check if your account is compliant.

2. Update your personal information and complete biometric authentication.

3. Activate your account by making a recent transaction (even nominal).

4. Have a backup plan: open a new account (local or international), or use e-wallets to maintain financial access if needed.

Steps to take now

• Contact your bank (phone, email, or branch) to verify compliance and requirements for biometric verification.

• Update your documents: valid ID (passport, residency card, visa), current address, phone number, and personal status.

• Complete biometric verification: visit a branch for facial or fingerprint scans, or use your bank’s mobile app if supported—this is crucial for compliance.

• Make a transaction: a small transfer or payment signals that the account is active and reduces risk of automatic closure.

Prepare a Plan B

• Consider alternatives: open a new account with another local bank, an international neobank (Wise, Revolut, etc.), or use e-wallets (MoMo, ZaloPay, ShopeePay…) to keep managing funds and transferring money if needed.

Practical tips for expats and travelers

• Test if your banking app still works after September 1.

• If you rely on a local account for salary or rent, update your details immediately.

• Use widely adopted e-wallets (MoMo, ZaloPay, VNPay)—convenient and growing fast.

• Always maintain an international fallback (Wise, Revolut, etc.) for emergencies.

What happens to money in closed accounts?

• If a closed account has a positive balance, the bank is legally required to return the funds to the account holder or heirs. If the owner doesn’t respond, funds are handled according to legal procedures, which can take months.

• Dormant accounts may accrue fees until the balance reaches zero, at which point they’re formally closed.

Vietnamese bank accounts: heading toward an IBAN?

Since the announcement of over 86 million inactive accounts getting closed as of September 2025, a frequent question from expats and travelers is: will Vietnamese banks adopt an IBAN like in Europe?

1. What is an IBAN?
   The International Bank Account Number (IBAN) is used in the SEPA zone and elsewhere to identify accounts in transfers. It includes country code, account number, and sometimes bank code.

2. How does it work in Vietnam today?
   Vietnam does not use IBANs. Transfers rely on:

   • A local account number

   • A SWIFT code for international transfers

   • Bank-specified details
     Example: to transfer from France to Vietnam, you need the SWIFT code (e.g., BIDVVNVX for BIDV) plus your account number.

3. Does the new law change anything?
   No, biometric account closures do not introduce an IBAN. They aim to standardize services, digitize payment methods, and secure transactions—but there’s no IBAN rollout scheduled for 2025.

4. Towards international compatibility?
   Even without IBANs, Vietnam is pushing for banking interoperability:

   • Card payments (Visa, Mastercard) are expanding

   • E-wallets (MoMo, ZaloPay, VNPay) are booming

   • Potential future alignment with SEPA-like standards might pave the way for an “Asian IBAN” or regional norm.

Practical advice for expats:

1. Always note your SWIFT code and account number.

2. Request a “bank confirmation letter” from your bank detailing account information.

3. Compare international transfer fees (BNP, Société Générale, ING, etc.).

4. Use low-cost options like Wise or Revolut to reduce fees.

Conclusion

No, this new law does not grant Vietnamese accounts an IBAN.
However, it paves the way for a more modern, secure, and globally compatible banking system.
For expats, this means staying informed, keeping records, and being ready for international transfers with the right codes.

❓ FAQ – Everything you need to know about opening and managing a bank account in Vietnam

How does opening a bank account in Vietnam work?

Opening a bank account requires documents such as a passport, visa, and sometimes a work contract. Each banking institution applies its own rules for accepting or rejecting an account opening request.

Which banks let you open an account with no fees?

Some local banks offer accounts with no management fees for residents. For French expats, online banks like Boursorama Banque, Monabanq, Fortuneo, Hello Bank, or BforBank also provide free bank accounts with a debit card.

Can I open a joint account in Vietnam?

Yes, a joint account can be opened in some banks, but the conditions depend on the Bank of Vietnam and in France on the Banque de France. Both account holders must provide shared documentation.

What types of bank cards are available?

The most common bank cards are debit cards, Visa Premier, and credit cards. These allow you to withdraw money, pay in stores, or set up direct debits.

Are checkbooks still used in Vietnam?

Checkbooks and cheques are rarely used in Vietnam today. However, in French institutions like the Banque Postale or the Banque de France, checks remain an official payment method for accounts domiciled in Europe.

How do I get an RIB or account statement?

An RIB (bank account details) is usually provided when you open an account. An account statement can be received on paper or downloaded from the bank’s online portal.

What is the “right to an account”?

The right to an account ensures that anyone residing in France, even if refused by a bank, can obtain a deposit account through the Banque de France. This includes basic services such as direct debits and the ability to withdraw cash.

What savings accounts are available?

Expats and residents can subscribe to a savings account or savings plan. Banks such as Banque Postale, LCL, ING Direct, or online players like Fortuneo or Boursorama Banque offer different savings products.

How does banking mobility work?

Banking mobility allows you to automatically transfer your direct debits and domiciliation to a new bank account, without having to contact each service provider individually. Banks such as Hello Bank, BforBank, and Monabanq simplify this process.

What if I’m blacklisted as a customer (interdit bancaire)?

If you are declared banking banned (interdit bancaire), you can still open a deposit account thanks to the right to an account. You’ll get a payment card (usually a debit card with systematic authorization) but no checkbook.

How do I withdraw money with my bank card?

With a debit card, a Visa Premier, or a credit card, you can withdraw money from ATMs throughout Vietnam. Fees may apply depending on the bank (BNP, LCL, ING Direct, etc.) and the transfer zone (SEPA or outside SEPA).

How do checking accounts work in Vietnam?

A checking-account in Vietnam works much like elsewhere: it allows you to deposit funds, make withdrawals, and manage your account balance. However, most Vietnamese banks still emphasize savings accounts more than current accounts.

Can I access ATMs easily in Vietnam?

Yes, ATMs are widely available in cities. You can withdraw money in Vietnamese dong, but international cards may incur withdrawal fees depending on the financial institution.

Does online-banking exist in Vietnam?

Most banks provide online-banking and mobile banking apps. Through these services, you can:

• Transfer funds

• Pay bills

• Check your account online

• Monitor your account balance
  These services are generally securely encrypted.

How does mobile banking work?

With mobile banking, you can manage your banking account, send money, transfer money electronically, and even enroll in services like direct deposit for your salary.

Is overdraft allowed on Vietnamese accounts?

Some banks allow an overdraft, but it’s less common than in Western countries. Certain financial institutions offer overdraft protection, while others do not. Always confirm with your banking account provider.

Can I pay bills online?

Yes. Most banks offer online bill payment or mobile bill pay. You can pay bills directly or set up recurring payments to utilities, landlords, or phone companies.

Are deposits insured like with the FDIC?

In Vietnam, deposits are protected by the Deposit Insurance of Vietnam (DIV), which functions similarly to the FDIC in the US. This ensures that money deposited in licensed financial institutions is partially insured.

What is a money market account?

Some Vietnamese banks and international branches may offer a money market account or money-market savings option. These accounts usually pay higher interest rates but require higher minimum deposits.

Can I link my account with a brokerage or IRA?

International banks and some credit-unions allow integration with brokerage accounts or even IRAs (Individual Retirement Accounts), but this is rare with purely Vietnamese banks. Expatriates often maintain such accounts abroad.

How do direct deposits work?

Employers in Vietnam can set up direct deposit of your salary into your banking account. Funds are deposited electronically, and you can withdraw cash or manage your money via online or mobile apps.

What information do I need for transfers?

To send money internationally, you’ll need:

• Your account number

• The bank’s routing or SWIFT code

• Recipient’s name and financial institution details

This allows you to transfer funds or transfer money securely between countries.

How can I securely manage my money in Vietnam?

• Use mobile banking and online-banking only on trusted devices.

• Set alerts to monitor your account balance and withdrawals.

• Rely on insured financial institutions for safety.

• Use overdraft protection if your bank offers it.