Vietnam arrests four more at failing shipbuilder

Vietnamese police have arrested four more people linked to the debt-laden state ship-builder Vinashin.

Among those arrested on Friday was Tran Quang Vu, a board member who was appointed head of the failing and overstretched conglomerate after the government sacked his predecessor in July and ordered the firm reorganized.

Also arrested were Tran Van Liem, another former member of the management board, as well as Nguyen Van Tuyen and Nguyen Tuan Duong, who were former CEOs of subsidiaries of Vinashin, or Vietnam Shipbuilding Industry Group.

The four men were suspected of having "committed actions that are against the laws on economic management, which resulted in especially serious consequences", a statement by the Ministry of Public Security said on the government's website, http://www.chinhphu.vn.

It said clues had been uncovered in the investigation into Vinashin's long-time CEO Pham Thanh Binh, who was arrested early last month.

The Vinashin case could yet have implications for the economy. Government documents show that Vinashin amassed debts worth about $4.5 billion.

Earlier this week Fitch cut its rating of Vietcombank, the country's second biggest partly private lender in terms of assets and a pillar of the financial system, and said it "could potentially be hit" by its exposure to Vinashin, which was 16 percent of equity.

Fitch also affirmed its rating for Bank for Investment and Development of Vietnam, the country's second biggest state-owned bank by assets, but gave a similar warning about non-performing loans and Vinashin exposure.

BIDV had yet to disclose the extent of its exposure, Fitch said.