Vietnam govt pledges to clean up banking system

The Government of Vietnam will take drastic actions in dealing with violations in the banking sector.

At the Government’s regular meeting on September 5, Vu Duc Dam, the Minister-Chairman of the Government Office, said that many individuals and organisations have used loopholes to get a stake in banks, exceeding the limits of regulations.

The Government has taken strong measures to prevent and penalise abuses in the banking system to ensure its healthy operation. “Anyone who violates regulation will face punishment, and there will be no exceptions,” he emphasised.

Many insiders say that Vietnam's banking system has been the source of macroeconomic instability in the past few years.

According to the Minister-Chairman, the restructuring of the banking system is key to ensure the healthy development of the economy and should be a top priority for Vietnam.

He also noted that, “It was not until the arrest of the tycoon Nguyen Duc Kien that banking crimes were talked  about openly but the Government had ordered the inspection agencies to pay special attention to banking violations, particularly illegal acquisitions.”

Under Vietnamese criminal law does not specifically address “illegal acquisitions” in banking sector, even though “illegal business practices” and “speculation” are clearly regulated.

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