Vietnam may allow individuals to borrow offshore funds
Vietnam may allow individuals to borrow money from foreign sources if a proposed banking ordinance gets the green light from the government, according to the State Bank of Vietnam.
The planned Foreign Exchange ordinance, being formulated by the country’s central State Bank, would allows individuals access to money from foreign sources.
Currently, a large number of Vietnamese living abroad want to invest directly into Vietnam, but if circumstances dictate they cannot, they want to lend money to their relatives to do business in the country, according to State Bank experts.
A legal document governing foreign exchange is needed to encourage and establish control over the source of foreign investment, experts say.
Some banking experts have expressed concern the ordinance may pave the way for property speculation or money laundering, or rising foreign investment into restricted economic areas in the country.
But others say it is essential to accommodate the huge number of expatriate Vietnamese sending money home to their relatives to do business.
“The country would attract several hundreds of million of US dollars each year in the form of foreign investment if we allow individuals to borrow foreign dollars,” says an expert.
The ordinance is to be submitted to the government in three weeks for approval, according to the State Bank.
Reported by Thanh Xuan – Translated by Hieu Trung.
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