Banks in a bind as Vietnam PM bemoans fall in lending

Lenders told to boost economy but fear risks amid massive SCB fraud trial

20240401 Ho Chi Minh City Skyline

Downtown Ho Chi Minh City. It is unclear how Vietnamese banks will thread the needle between official pressure to increase lending and pressure to stay clean and under control. © Reuters

LIEN HOANG, Nikkei staff writer

HO CHI MINH CITY -- Vietnam's banks are in a quandary as they face official pressure to simultaneously increase lending and scrutinize loans more closely, and with authorities cracking down on financial fraud, including a case in which prosecutors are seeking the death penalty.

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