Hanoi says Incombank/ABN dispute wont hit investment
HANOI - Vietnam said the legal dispute between Industrial and Commercial Bank of Vietnam (Incombank) and Dutch bank ABN AMRO would be solved without hurting foreign investment in the country.
This is the first response by the communist-run government on a lawsuit filed against ABN AMRO last Thursday by Incombank, the country's fourth-largest bank.
The lawsuit seeks compensation over foreign currency trades with ABN AMRO that caused Incombank losses of $5.4 million, according to newspaper reports, saying the trades were done by an unauthorised employee and ABN AMRO should not have executed them. ABN AMRO has said the trades were valid.
"This lawsuit will not affect the environment for foreign investment in Vietnam as well as the relationship between Vietnam and the Netherlands," Vietnam's Foreign Ministry spokesman Le Dung told a regular news briefing.
Responding to media reports which said the case had set off alarm bells among foreign businesses, Dung said: "It is our consistent policy to create a favourable operational environment for foreign investors in Vietnam, including the operation of commercial banks."
He said investigations were under way, and that Vietnam would be transparent and compliant with its commitments to the business community while dealing with the lawsuit.
"We hope that Dutch bank ABN AMRO, Vietnam's Incombank and the Vietnamese relevant agencies will work together to find out an appropriate solution," he added.
State-run newspapers reported that an employee at one of Incombank branches was detained in March. Police said she was involved in forex dealing along with several staff at the Dutch bank's Hanoi branch, who also faced police prosecution.
Hanoi-based Incombank filed the lawsuit at the People's Court of the city.
Reuters - August 10, 2006.
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