Vietnam National Assembly delegates propose ban on forced bond purchases

During a National Assembly discussion regarding amendments to the Law on the State Bank of Vietnam, the Law on Anti-Money Laundering, and the Law on Credit Institutions, delegates raised concerns regarding predatory banking practices.

Delegate Le Van The proposed strict measures to prevent situations described as "buying beer with peanuts" (mua bia kèm lạc), where banks allegedly pressure or force customers to purchase corporate bonds or other investment products as a condition for receiving loans. He emphasized the need for the Government and the State Bank of Vietnam to establish detailed regulations to stop banks from using their position to mandate such purchases.

Furthermore, discussions focused on managing conflicts of interest when commercial banks act as collateral management agents for corporate bonds. While some delegates, including Tran Hoang Ngan, noted the necessity of allowing banks to perform this role to help the corporate bond market reach its target of 25-30% of GDP, they stressed that mechanisms must be designed to ensure independence, transparency, and the protection of bondholders' interests.