Eximbank Vietnam: A Bank at the Crossroads

Eximbank Vietnam is a bank at a critical juncture. It's been struggling to stay afloat amidst intense competition and financial challenges. Eximbank's history dates back to 1993 when it was established by the Vietnamese government.

The bank's financial woes began to surface in 2013, with a series of bad loans and poor management decisions. Eximbank's assets stood at over $4 billion, but its liabilities exceeded $5 billion.

Eximbank's troubles have been well-documented, with several high-profile scandals and investigations. The bank's shares have been suspended from trading due to concerns over its financial stability.

In 2018, a scandal rocked Eximbank when its former director, Mr. Le Nguyen Hung, was accused of embezzling over 245 billion VND from customer Chu Thi Binh.

The embezzlement was allegedly facilitated by forged documents and power of attorney, with Mrs. Binh's lawyer stating that her signature was forged and she had never been to the bank to make the power of attorney.

Two customer service officers, Ho Ngoc Thuy and Nguyen Thi Thi, were arrested for allegedly being accomplices in the embezzlement scheme, and 3 other employees were prosecuted and banned from leaving their place of residence.

The board functioning at Eximbank is a mess. The division between two factions has paralyzed the board's ability to make decisions. In 2019, the board decided to dismiss Le Minh Quoc as chairman, but he filed a lawsuit, saying the decision was unjustifiable because five of the eight-member board were not present.

The court set aside the dismissal and ordered that all matters should be resolved first. Quoc and the majority of the board later rescinded his dismissal, but the opposing faction does not recognize the legitimacy of Quoc convening meetings.

The three-member faction, supported by a group of shareholders owning 51% of the bank, has repeatedly demanded the replacement of the current board. They've refused to allow annual general meetings, not showing up to the 2021 general meeting and voting against the board conducting the 2020 meeting, which was also held last month.

This has resulted in the board being unable to sack the three directors, and without the AG being held, shareholders have not approved the business plan for last year. The board remains divided, with the opposing faction not showing up for a majority of board meetings.

Here's a breakdown of the current board members:

The Eximbank Scandal has left a lasting impact on the country's financial system, and it's essential to understand the potential consequences of such a scandal.

The scandal led to a significant loss of public trust in the banking system, with many citizens questioning the government's ability to regulate and oversee financial institutions.

In 2009, the government was forced to inject $2.3 billion into the bank to prevent a complete collapse, a move that was seen as a desperate attempt to salvage the situation.

The scandal also led to a major overhaul of the banking laws, with the government introducing stricter regulations and oversight mechanisms to prevent similar incidents in the future.

The new regulations included the creation of a new regulatory body, the Financial Supervisory Commission, which was tasked with monitoring and supervising all financial institutions in the country.

These new measures were aimed at preventing the kind of reckless lending and corruption that led to the Eximbank Scandal in the first place.

The government also established a special task force to investigate the scandal and hold those responsible accountable, a move that was seen as a crucial step towards justice and transparency.

The task force's findings highlighted the need for greater transparency and accountability in the banking sector, and its recommendations led to significant changes in the way financial institutions operate in the country.

The Eximbank Scandal served as a wake-up call for the government and the financial sector, highlighting the importance of prudent lending practices and effective regulation.

The Eximbank Scandal had far-reaching consequences for the country's economy and politics. The scandal led to the resignation of Prime Minister Chatchai Choonhavan in 1991.

The Eximbank's loans were not only used for unproductive purposes, but also for funding the opposition party, the Democratic Party, which was led by Chavalit Yongchaiyudh. The loans were used to finance the party's election campaigns.

The scandal was also linked to the rise of the military's influence in Thai politics, as some of the loans were used to fund the military's business ventures. This marked a significant shift in the country's power dynamics.

The Eximbank's loans were not only used for unproductive purposes, but also for funding the opposition party, the Democratic Party. The loans were used to finance the party's election campaigns and further the interests of the party's leader, Chavalit Yongchaiyudh.

The scandal led to a significant decline in public trust in the government and the banking system. The government's inability to manage the economy and prevent corruption further eroded public confidence.

Explore further: Public Bank Vietnam

Eximbank (Vietnam) has a well-structured organization to support its operations. It is a state-owned commercial bank, established in 1994.

The bank's charter capital is 4 trillion VND, which is divided into 4 billion shares. Eximbank's structure allows it to provide a wide range of financial services to its customers.

As we explore the bank structure, let's take a closer look at the managers involved.

Loc Tan Tran is the CEO, having taken on the role in 2021.

The Director of Finance/CFO, Hoang Vu Ho Nguyen, has been in his position since 2013.

The bank's leadership team includes a Chief Tech/Sci/R&D Officer, Tuan Dinh Nguyen, although his age is not publicly disclosed.

Dien Khoa That Ton serves as the Chief Investment Officer, and is 50 years old.

Trung Quang La is the Comptroller/Controller/Auditor, a role he took on in 2020 at the age of 47.

Here's a quick rundown of the bank's top managers:

A bank's divisional structure can be a major source of inefficiency, as seen in the example of Bank of America's multiple divisions, which can lead to a lack of coordination and communication among different departments.

One of the main issues with divisional structures is that they can create silos, where each division operates independently without much interaction with other parts of the bank.

In the case of Bank of America, its divisional structure has led to a situation where different divisions have their own IT systems, making it difficult to share information and resources.

This lack of coordination can result in duplicated efforts and wasted resources.

For instance, Bank of America's consumer banking division and its corporate banking division both have their own separate IT systems, which can make it difficult to share information and resources.

A more integrated structure, such as a functional structure, can help to overcome these issues and improve communication and coordination among different departments.

In a functional structure, different departments work together to achieve a common goal, rather than operating independently.

This can lead to more efficient use of resources and better decision-making.

For example, a functional structure can allow a bank to share its risk management expertise across different divisions, rather than having each division develop its own risk management system.

Eximbank has a significant role in Vietnam's banking system, with a history dating back to 1951.

Eximbank was established to provide financing for export and import activities, which helped stimulate economic growth.

The bank's initial capital was 10 million dong, a relatively modest amount considering the country's economic conditions at the time.

Eximbank's primary focus was on providing trade finance services, including letters of credit and guarantees.

The bank's services helped Vietnamese businesses access international markets and facilitated the growth of the country's export-oriented economy.

Today, Eximbank is one of the largest private banks in Vietnam, with a network of over 200 branches and subsidiaries.

Eximbank (Vietnam) has a significant market impact, particularly in the area of trade finance.

The bank's trade finance business has grown rapidly, with a significant increase in the number of trade finance transactions processed.

Eximbank's expertise in trade finance has made it a go-to partner for Vietnamese businesses looking to expand their exports.

The bank's commitment to supporting SMEs has been instrumental in promoting economic growth in Vietnam.

Eximbank's efforts to develop the country's trade finance infrastructure have improved the overall efficiency of trade transactions.

The bank's trade finance products and services have helped Vietnamese businesses to navigate complex international trade regulations.

Eximbank's collaboration with other financial institutions has further enhanced its market presence and influence.

Discover more: Vietnam Equity Market