The Vietnam Development Bank (VDB) will maintain an average creditgrowth rate of about 10 percent per year between now and 2020, accordingto the bank’s medium-term strategies approved late last week by PrimeMinister Nguyen Tan Dung.
Such a growth rate will ensurefinancial safety and consolidate the sustainability and efficiency of abank which does not target profits to implement Government policytending.
Any profit will be used to guarantee the bank’scapacity to carry out investment and export lending policies and othertasks assigned by the Government to help fulfill the nation’ssocio-economic development strategies and plans in different periods.
According to the approved plans, the VDB will build a roadmap toincrease its charter capital to 20 trillion VND (952.38 million USD) in2015 and 30 trillion VND (1.43 billion USD) in 2020, which is theequivalent to 10 percent of the total State lending for investments andexport.
It with concentrate credits on areas includingsocio-economic infrastructure, supports industries, agriculture andrural areas, education, health care, environment protection, greentechnology ad protection, green technology and clean and recyclableenergy.
The plans will also put a focus on lending toindustries which generate high export value and sectors in need ofGovernment support to ensure international commitments.
Thebank will complete credit guarantee services for small and medium-sizedenterprises to help them gain capital for production and businessactivities, while enhancing its financial capacity and fortifying riskmanagement.
Dung urged the VDB to review its lendingportfolios, borrowers and their projects so than it can restructurecapital sources and assure “reasonable” credit growth, improve creditquality in customer assessing, capital disbursing and debt recoveringphases, and seek effective measures to deal with bad debt.
Henoted that the bank needs to reduce its bad debt ratio to 7 percent by2015, 4-5 percent by 2020 and below 3 percent by 2030. He tasked the VDBwith exploring the possibility of building a separate law to apply forpolicy banks, which are currently allowed to operate in accordance tothe Law on State Budget and the Law on Credit Institutions.
Thebank was also asked to reach a capital safety ratio of 10 percent and atotal asset value of about 500 trillion VND (23.8 billion USD) by2020.-VNA
Such a growth rate will ensurefinancial safety and consolidate the sustainability and efficiency of abank which does not target profits to implement Government policytending.
Any profit will be used to guarantee the bank’scapacity to carry out investment and export lending policies and othertasks assigned by the Government to help fulfill the nation’ssocio-economic development strategies and plans in different periods.
According to the approved plans, the VDB will build a roadmap toincrease its charter capital to 20 trillion VND (952.38 million USD) in2015 and 30 trillion VND (1.43 billion USD) in 2020, which is theequivalent to 10 percent of the total State lending for investments andexport.
It with concentrate credits on areas includingsocio-economic infrastructure, supports industries, agriculture andrural areas, education, health care, environment protection, greentechnology ad protection, green technology and clean and recyclableenergy.
The plans will also put a focus on lending toindustries which generate high export value and sectors in need ofGovernment support to ensure international commitments.
Thebank will complete credit guarantee services for small and medium-sizedenterprises to help them gain capital for production and businessactivities, while enhancing its financial capacity and fortifying riskmanagement.
Dung urged the VDB to review its lendingportfolios, borrowers and their projects so than it can restructurecapital sources and assure “reasonable” credit growth, improve creditquality in customer assessing, capital disbursing and debt recoveringphases, and seek effective measures to deal with bad debt.
Henoted that the bank needs to reduce its bad debt ratio to 7 percent by2015, 4-5 percent by 2020 and below 3 percent by 2030. He tasked the VDBwith exploring the possibility of building a separate law to apply forpolicy banks, which are currently allowed to operate in accordance tothe Law on State Budget and the Law on Credit Institutions.
Thebank was also asked to reach a capital safety ratio of 10 percent and atotal asset value of about 500 trillion VND (23.8 billion USD) by2020.-VNA
