Foreign investors’ concerns mount as Vietnam’s regulatory gaps threaten growth efforts
While systemic risk in the banking sector has mostly been avoided, the country’s fraud case involving property tycoon Truong My Lan has put a spotlight on these regulatory gaps
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[HO CHI MINH CITY] Less than two months since Vietnam’s real estate tycoon Truong My Lan was sentenced to death amid the country’s far-reaching anti-graft campaign, market watchers say foreign investors are expressing doubt that the country can effectively regulate and manage its economy to foster growth.
Vietnam’s largest fraud case involving Lan’s embezzlement of more than US$12 billion from the Saigon Commercial Bank (SCB) has underscored the weaknesses in financial supervision and the governance failures that led to the bank’s stress, said Fitch Ratings in a commentary early this month.
Lan’s death sentence, handed down last month, sent shock waves across the country’s business circles. She has appealed against the sentence.
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