A Vietnamese Ministry of Transport official has confirmed to Baird Maritime that an executive in the Bank of Investment and Development Vietnam (BIDV) has been held by enforcement authorities over allegations of corruption.

One of BIDV’s main clients is Vinashin, Vietnam's state-owned ship builder. BIDV is also state-owned.

Vinashin is in dire need of financial backing. The Vietnamese Government announced two days ago that it would raise US$1 billion in bonds, a move which analysts suggest is a disguised effort to help Vinashin.

Doan Tien Dung is the Deputy General Director of the BIDV. His arrest on February 2 came after police raided his office and house, following a direct order from the Ministry of Public Security.

“It is true that he has been arrested by the police,” the ministry official said on condition of anonymity.

It is believed that Mr Dung was caught red-handed. Also arrested was an official from the bank’s Hai Phong branch.

Sammy Lee