HANOI - The
French government will donate 1.3 million euros (US$1.22
million) toward bank reform in Vietnam, the State Bank
of Vietnam and the Agence Francaise de Development (AFD)
said.
The fund will provide technical assistance
for the state-owned Industrial and Commercial Bank of
Vietnam (Incombank). The project aims to upgrade
Incombank's structure, management and administration to
meet the standards of a modern commercial bank. It will
also enhance transparency.
The money will fund
one year's worth of technical assistance for local
experts in foreign banking. Short-term research projects
on loan administration, training programs and the
improvement of transparency and accountancy will also be
carried out.
The director of the State Bank of
Vietnam's foreign department, Ha Dan Huan, said
Vietnam's banks need urgent reform to cope with the
challenges of international integration. The project
aims to contribute to a 2001-10 program of national
modernization. Several other major loans are being
assessed through the AFD.
The agency's resident manager Luc
Bonnamour said AFD has lent 328 million euros (US$322.5
million) to Vietnam for 21 projects on energy, banking
and finance.
