October 20, 2025Oct 20 Photo courtesy of Vietnam News Five major banks in Vietnam have been found misusing trillions of đồng from corporate bond issues, a government report revealed on Friday. The Government Inspectorate's findings showed funds intended for specific purposes were instead used for unrelated activities by three of these banks. This misconduct has raised concerns about the banks' management of bond proceeds. The inspection covered activities from January 1, 2015, to June 30, 2023, focusing on five banks: Military Bank (MB), Asia Commercial Bank (ACB), VPBank, Vietnam International Bank (VIB), and Orient Commercial Bank (OCB). These institutions issued over VNĐ255 trillion (US$9.7 billion) in bonds, with nearly VNĐ98 trillion remaining unpaid by mid-2023. Specifically, ACB and MB were highlighted for using bond proceeds improperly for lending, diverging from their declared medium- and long-term credit plans. The report criticized the banks for merging bond revenues with general business capital, which led to their misuse. It also found compliance issues, particularly among VIB and MB, where disclosure norms were not met and crucial information was either inaccurately presented or delayed. Concerns were also raised about the lack of annual capital plans and tracking systems to differentiate bond funds from other capital. In response, the Government Inspectorate has recommended that the State Bank of Vietnam enforce stricter controls on these financial activities. The recommendations include increasing oversight of bond issuance and holding institutions accountable for any violations. This call to action aims to restore confidence and ensure transparency in financial management. Moving forward, the Vietnamese government will likely intensify regulatory scrutiny to prevent similar issues. The State Bank is expected to implement regulatory changes ensuring stricter adherence to bond usage regulations and transparency requirements. Key Takeaways Vietnamese banks misused bond funds, causing regulatory concern. The government urges stricter audit and compliance measures. Future regulatory changes expected to tighten bond fund management. Related Stories: US Mulls $15,000 Visa Bond for Tourists from High-Risk Nations Thai Bond Sell-off Surges Amid Political Tensions and Rate Worries Adapted by ASEAN Now from Vietnam News 2025-10-20
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