Vietnam banking regulations and financial investigations

Vietnam continues to address financial irregularities and criminal activity within its banking and industrial sectors. Following previous investigations into lending violations at Vietnam Construction Joint Stock Commercial Bank (VNCB), authorities have expanded their focus to regional credit funds and large-scale industrial projects.

In Ninh Binh province, police identified seven groups involved in illegal activities aimed at embezzling assets at the Thành Đô People's Credit Fund. This investigation has led to the prosecution of two individuals and the recovery of 130 billion VND in misappropriated assets and bad debts. Deputy Minister of Public Security Phạm Thế Tùng noted that the proactive investigation helped stabilize the local credit fund system.

Concurrently, the Ministry of Public Security concluded a supplementary investigation into the Lao Cai Iron and Steel Plant project, involving Viet Trung Mineral and Metallurgy Co., Ltd (VTM) and the Vietnam Steel Corporation (VNS). The probe recommends the prosecution of 31 defendants for charges including bribery, abuse of power, and mismanagement of state assets. Key figures facing prosecution include Bùi Thanh Bình, former General Director of VTM, and Lê Ngọc Hưng, former Vice Chairman of the Lao Cai Provincial People's Committee. The case highlights significant financial discrepancies, specifically regarding a 160 million USD contract that was allegedly approved despite incomplete investment appraisals and lower competitive bids. Recent reports confirm that the investigation into the Viet Trung Mineral and Smelting Company indicates mismanagement caused losses exceeding 434 billion VND.