Prime Minister asks Japanese banks to participate in restructuring weak banks

Mizuho Bank - one of the three largest banks in Japan - was asked by Prime Minister Pham Minh Chinh to participate in restructuring weak banks in Vietnam.

This proposal was made by Prime Minister Pham Minh Chinh when receiving Mr. Masahiko Kato, Chairman of Mizuho Bank at noon on December 16, in Tokyo, during a working trip and attending the ASEAN - Japan 50th Anniversary Summit.

According to the Prime Minister, Vietnam is implementing a project to restructure the system of credit institutions, aiming to increase the quality and efficiency of the financial and banking system. In this process, Vietnam encourages foreign financial institutions and banks to participate.

The restructuring of weak banks is slow and difficult, such as finding voluntary investors. At the question-and-answer session on November 6, State Bank Governor Nguyen Thi Hong said that the agency will complete a detailed plan to restructure weak banks and submit it to competent authorities for approval and implementation.

Currently, 5 banks are under special control, including CBBank, OceanBank, GPBank, DongABank and SCB.

OceanBank - one of the five banks under special control, needs restructuring. Photo: OceanBank — OceanBank - one of the five banks under special control, needs restructuring. Photo: *OceanBank*

In addition to finance, the Prime Minister also asked the Japanese banking giant to have preferential policies to support the development of 1 million social housing apartments for workers and low-income people.

Mizuho is one of the three largest banks in Japan, with revenue of over 15 billion USD and total assets of over 1,700 billion USD. This bank currently has two branches in Hanoi and Ho Chi Minh City. In 2011, Mizuho became a strategic shareholder of Vietcombank (VCB) through the purchase of 15% of shares, worth over 567 million USD.

On the same day, receiving Mr. Ishiguro Norihiko, President and CEO of the Japan External Trade Organization (Jetro) , the Prime Minister asked this organization to advise the Vietnamese Government on developing policies to attract investment in new areas such as green transformation, digital transformation, circular economy, and sharing economy.

Jetro is an independent administrative agency of the Japanese government, operating under the management of the Ministry of Economy, Trade and Industry of Japan (METI). The organization currently has over 1,800 employees, 76 offices in 57 countries and territories, along with 45 offices in Japan. Vietnam is the only country in ASEAN where Jetro has 2 representative offices in Hanoi and Ho Chi Minh City.

Prime Minister Pham Minh Chinh is working in Japan and attending the ASEAN-Japan 50th Anniversary Summit as well as conducting bilateral activities, at the invitation of Prime Minister Kishida Fumio, December 15-18.

2023 is the year Vietnam and Japan celebrate the 50th anniversary of establishing diplomatic relations. The two countries upgraded their relationship to Comprehensive Strategic Partnership in November. Japan is Vietnam's leading economic partner, ranking first in providing ODA, second in labor cooperation, third in investment and tourism, and fourth in trade.

Hoai Thu

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