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ABN Amro Deposits $4.5 Million to Free Staff Members in Vietnam

The Vietnamese police reported Monday that the Netherlands` largest bank, ABN Amro, deposited $4.5 million with the Vietnamese police, until a settlement can be reached between the bank and one of the Vietnamese government owned bank, Incombank. Incombank filed a law suit against ABN Amro, which is based in Amsterdam, for alleged losses it faced due to trade in international currency. Incombank claims that ABN Amro made speculative investments under instructions of an Incombank employee, who wasn`t authorized to authorize such actions - Investments that lost Incombank a large sum of money. This trading took place over a 3-year period.

The Vietnamese police are conducting an investigation. The $4.5 million deposited by ABN Amro were put in two police bank accounts until the investigation is completed. The police also took in to custody one Incombank employee, as well as, three ABN Amro staffers. The decision to deposit the money with the Vietnamese police was made as a part of a deal to free ABN Amro`s employees.

Organizations representing the business sector, including the European Chamber of Commerce, are taking measures to settle the disagreement, which they claim could hurt investor`s trust in the Vietnamese economy, which is run by a communist government. Vietnam which is scheduled to joint the World Trade Organization (WTO) in January must insure the rule of law if it is to attract foreign investment. Vietnam has lately hosted APEC talks, hosting leaders from the Pacific Rim region including US President George W. Bush, who praised the Vietnamese economy.