Sat. Feb 24th, 2024

The Vietnam Development Bank (VDB) will maintain an average credit
growth rate of about 10 percent per year between now and 2020, according
to the bank’s medium-term strategies approved late last week by Prime
Minister Nguyen Tan Dung.

Such a growth rate will ensure
financial safety and consolidate the sustainability and efficiency of a
bank which does not target profits to implement Government policy
tending.

Any profit will be used to guarantee the bank’s
capacity to carry out investment and export lending policies and other
tasks assigned by the Government to help fulfill the nation’s
socio-economic development strategies and plans in different periods.

According to the approved plans, the VDB will build a roadmap to
increase its charter capital to 20 trillion VND (952.38 million USD) in
2015 and 30 trillion VND (1.43 billion USD) in 2020, which is the
equivalent to 10 percent of the total State lending for investments and
export.

It with concentrate credits on areas including
socio-economic infrastructure, supports industries, agriculture and
rural areas, education, health care, environment protection, green
technology ad protection, green technology and clean and recyclable
energy.

The plans will also put a focus on lending to
industries which generate high export value and sectors in need of
Government support to ensure international commitments.

The
bank will complete credit guarantee services for small and medium-sized
enterprises to help them gain capital for production and business
activities, while enhancing its financial capacity and fortifying risk
management.

Dung urged the VDB to review its lending
portfolios, borrowers and their projects so than it can restructure
capital sources and assure “reasonable” credit growth, improve credit
quality in customer assessing, capital disbursing and debt recovering
phases, and seek effective measures to deal with bad debt.

He
noted that the bank needs to reduce its bad debt ratio to 7 percent by
2015, 4-5 percent by 2020 and below 3 percent by 2030. He tasked the VDB
with exploring the possibility of building a separate law to apply for
policy banks, which are currently allowed to operate in accordance to
the Law on State Budget and the Law on Credit Institutions.

The
bank was also asked to reach a capital safety ratio of 10 percent and a
total asset value of about 500 trillion VND (23.8 billion USD) by
2020.-VNA

By vivian