Viet kieu Bank proposed for Vietnam

Illustrative Photo. (Photo: thoibaonganhang.vn)

Hanoi (VNA) – A proposal to establish the Viet kieu (Overseas Vietnamese) Bank in Vietnam has been raised at a meeting between Prime Minister Nguyen Xuan Phuc and OV experts last week. 

Banking expert Dr Nguyen Tri Hieu said he expects the proposed bank will connect Viet kieu with domestic investment projects.

The difference between the Viet kieu Bank and other banks, noted officials, is that it will become a financial bridge, linking foreign investors with domestic firms. Currently, there is no bank in Vietnam focusing on such a link, he said.

Hieu expects Viet kieu Bank to assist domestic firms, especially start-ups and small- and medium-sized businesses, as well as those facing financial difficulties but having great potential, to successfully access foreign capital.

Further, he said, Vietnam also needs a bank that is established in accordance with international standards of human resources, infrastructure, information technologies and financial services.

According to Hieu, some OVs proposed the plan to the Government many years ago, however, it could not be implemented at that time, as Vietnam’s legal regulations did not allow foreign shareholders to contribute charter capital to domestic banks.

Today, the establishment of such bank is legal, Hieu said, adding that the Government is also encouraging Viet kieu to invest in the homeland to assist in the nation’s development.

Additionally, Hieu said, the financial status of 4.5 million Viet kieu has significantly grown over the past years. He estimated that income from them throughout the world is equal to roughly 50 percent of Vietnam’s GDP.

As for the Viet kieu Bank’s operation, like other banks in Vietnam, "the Viet kieu Bank will operate with the approval and direction from the State Bank of Vietnam", Hieu said.

The bank will also provide consultations to help OVs and foreigners looking to invest in Vietnam, as they seek suitable investment projects.

Hieu said he was optimistic about the proposed bank, confirming that many Viet kieu have also expressed interest in the plan.-VNA