Viet kieu Bank proposed as link to foreign investors

Banking expert Nguyen Tri Hieu said he expected that the proposed bank would connect Viet kieu with facilitating domestic investment projects.
The difference between the Viet kieu Bank and other banks, officials noted, is that it acts as a financial bridge, linking foreign investors with domestic firms. Currently, there is no bank in Vietnam providing such a link, he said.
Hieu expects the 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.
Hieu said that establishing a Viet kieu Bank was proposed to the government years ago but it could not be implemented at that time as Vietnam’s legal regulations would not allow foreign shareholders to contribute charter capital to domestic banks.
Today, the establishment of such a 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 kieus has significantly grown over the past years. He estimated that income from Viet kieus worldwide is equal to roughly 50 per cent 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 would also provide consultations to help Viet kieu and foreigners looking to invest in Vietnam, as they seek suitable investment projects.
Hieu said that he was optimistic about the proposed bank, confirming that many Viet kieus have also expressed interest in the plan.