VietNamNet Bridge - Many commercial banks in Vietnam are controlled by families. The concentration of power could be a danger if the owners abuse the power.

The Asia Commercial Bank (ACB) is run by the family of Tran Mong Hung who has returned after the ‘mogul Kien’ scandal. 

‘Mogul Kien’ or Nguyen Duc Kien, former Vice Chairman and founder of ACB, was arrested in 2012 ago and prosecuted on four charges - swindling to appropriate property, doing illegal business, tax evasion and intentionally violating the state provisions on economic management causing serious consequences.

By July 30, 2015, five members of Hung’s family had been reported as holding 78.35 million ACB shares, or 8.36 percent of the bank’s chartered capital. The proportion is the same with the figure found in the 2014 report.

With the current market price of VND20,400 per share, the amount of shares is worth VND1.6 trillion.

If counting shares being held by those who have relations with Tran Mong Hung and Dang Thu Thuy, the total share assets of the president and relevant parties would be 103.3 million, or 11.02 percent of the bank’s stakes. 

Orient Commercial Bank (OCB) is also a well-known nepotistic bank: Trinh Van Tuan, chair of OCB Board of Directors, now holds 15.86 percent of stakes, while Tuan alone holds 4.08 percent.

Ben Thanh Corporation and Vietcombank, one of the Vietnamese largest commercial banks, are the two big shareholders of OCB. Meanwhile, another big banker, BNP Paribas (BNPP) now holds 20 percent of stakes, the highest allowed foreign ownership ratio.

Though having receded into the background, Tran Thi Huong’s influences on Nam A Bank are still big. Huong’s family members now hold 12.3 percent of the bank’s chartered capital.

Nguyen Quoc Toan, though having resigned from the post of chair of Nam A Bank, still holds 5 percent of the bank’s shares.

Tram Be had been a big name in the banking sector with a high rate of ownership in Sacombank and Southern Bank until he was forced to leave Sacombank on October 30 and deal with debts he is responsible for per SBV’s statement.

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