Deputy PM Hue urges IFC to buy stakes in major commercial banks

Hanoi (VNA) – Deputy Prime Minister Vuong Dinh Hue has suggested that the International Financial Corporation (IFC) buy stakes in Vietnam’s major commercial banks when meeting with the IFC Chief Operating Officer Stephanie von Friedeburg in Hanoi on November 7.

The Deputy PM said the IFC’s investment in Vietnamese banks and financial institutions has helped with the equitisation process, the private sector’s development and mobilization of capital for infrastructure.

He noted that the Vietnamese Government is aware of the imbalance in the capital market and has conducted restructuring of this market, recording positive results.

He informed the guest about some important infrastructure projects to be launched in the time ahead, such as the Long Thanh airport and the North-South highway, asking the IFC to provide funding to enterprises and banks for investment in those projects.

The IFC executive said the institution appreciates opportunities of financial investment in Vietnam, adding that it wants to work with Vietnam to develop the country’s capital markets through introducing new products on the stock market, helping develop the corporate bond market and invest in large-scale projects in the country.

She asked the Vietnamese Government to allow international financial organisations to accept mortgages in the form of land use right and land-linked assets.   

In reply, Deputy PM Hue said the issue has not been covered in Vietnamese law. He assigned the Ministry of Natural Resources and Environment, the State Bank and the Ministry of Justice to study the matter and report to the Prime Minister for consideration./.