Vietnam Developer to Save Struggling Bank with $120 Million Investment

A Vietnamese developer has proposed a 15-year rescue plan for a bank at the center of a major fraud scandal, documents show. The Central Bank of Vietnam pumped nearly $26 billion into the struggling State Commercial Bank of Vietnam (SCB) in recent years.

Sun Group, a local developer, has vowed to invest at least $120 million to recapitalize SCB and help it recover from losses. The bank’s deposits have significantly decreased, leaving it with a huge capital hole.

The rescue plan is aimed at stabilizing the bank and preventing further financial damage. However, the proposal has raised concerns about the long-term viability of the rescue effort and the potential risks involved.

Source: https://www.reuters.com/business/finance/vietnam-developer-proposes-15-year-rescue-bank-heart-giant-fraud-documents-show-2025-03-18