VDB must proactively innovate thinking and make creative efforts for sustainable development.

Deputy Prime Minister Ho Duc Phoc met with ministries and branches on the operation situation and draft Decree regulating the organization and operation of the Vietnam Development Bank.

On March 25, Deputy Prime Minister Ho Duc Phoc met with ministries and branches on the operation situation and draft Decree regulating the organization and operation of the Vietnam Development Bank.

At the meeting, Deputy Minister of Finance Nguyen Duc Chi reported on the operation of the Vietnam Development Bank up to March 20, 2025; reported on receiving and explaining the opinions of Government members on the draft Decree regulating the organization and operation of the Vietnam Development Bank.

Accordingly, regarding the operation of VDB, Deputy Minister of Finance Nguyen Duc Chi said that as of March 20, the total capital of the Development Bank was VND 203,075 billion (up 1.54% compared to the end of 2024, down 18.3% compared to the end of 2021), of which equity was VND 16,616 billion, mobilized capital was VND 78,621 billion.

Over the past time, the Development Bank's capital has fully met its tasks of disbursement, payment of due debts and ensuring operational safety indicators according to the provisions of law.

As of March 20, the total outstanding credit balance of the Development Bank reached VND 161,540 billion (a decrease of VND 55,542 billion compared to the end of 2021 and an increase of VND 3,308 billion compared to the end of 2024), of which outstanding investment credit balance reached VND 38,380 billion.

In 2024 and the first months of 2025, the Development Bank has actively deployed new investment credit loans in accordance with Decree No. 78/2023/ND-CP. Accordingly, as of March 20, VDB has signed 31 new investment credit contracts with a total loan approval of VND 12,243 billion, and a total loan disbursement of VND 3,137 billion.

In addition, VDB has also focused on urging debt collection. From the end of 2021 to present, it has recovered VND 33,676 billion in principal and VND 14,946 billion in interest, basically achieving the annual plan.

Regarding the implementation of the Politburo's conclusions, the direction of the Party Central Committee of the Government, and the Prime Minister on restructuring the Vietnam Development Bank for the 2023-2027 period, the Ministry of Finance has submitted to the Government a Decree on the organization and operation of VDB.

The Ministry of Finance's report said that the draft had been consulted with Government members and fully accepted and explained by the Ministry of Finance.

After listening to the report, representatives of the Ministry of Justice; State Bank of Vietnam; State Audit Office; Ministry of Public Security; Government Inspectorate; and Ministry of Home Affairs agreed with the assessment of the Ministry of Finance, acknowledging the positive changes of VDB in recent times.

Representatives of ministries and the Ministry of Finance also spoke and discussed the following contents: Legal form of VDB; operating principles and characteristics of policy banks; capital mobilization mechanism of the Development Bank; implementation of inspection, examination and auditing of VDB...

Reporting at the meeting, VDB Chairman Le Van Hoan said that recently: The Bank has deployed a series of solutions, reviewed the restructuring plan, established additional specialized groups on information technology, organizational structure and corporate culture.

Regarding the organizational structure, this month, VDB will streamline 2 focal points at the Head Office. For branches, VDB is developing a plan based on the merger of some provinces and cities in the direction of not increasing the number of branches (currently there are 30 branches in the localities).

With the mission of a long-term investment bank, the Board of Directors of the Development Bank has been interested in finding investors, proactively working with large corporations and groups to cooperate in implementing key national projects.

In addition, VDB is also urgently implementing solutions to recover loans. It is expected that in 2025, VDB will continue to reduce bad debt based on the risk reserve fund.

Deputy Prime Minister Ho Duc Phoc assessed that VDB has made many efforts and had positive changes in its activities.

VDB has made many efforts and its activities have changed positively.

Concluding the meeting, Deputy Prime Minister Ho Duc Phoc acknowledged that in recent times, the Vietnam Development Bank has made many efforts and its operations have had positive changes: Bad debt decreased by VND 22,015 billion (equivalent to a decrease of 43%), the difference between revenue and expenditure was positive at VND 1,642 billion, and accumulated losses decreased by VND 2,214 billion (equivalent to 27.98%) compared to 2021.

The Deputy Prime Minister stated: Decision No. 90/QD-TTg approving the restructuring plan and orientation of VDB's operations for the period 2023-2027 stipulates that VDB must have 4 reports every year on the contents specified in the decision. By 2027, it must be summarized so that the competent authority can decide whether VDB's model is to be transformed into a commercial bank or continue to be a policy bank.

Time is running out, the Development Bank must have a specific report to the Ministry of Finance. The Ministry of Finance is both in charge of state management and the representative of the owner, and must supervise, guide, lead, and direct inspections of the Development Bank.

The Deputy Prime Minister also pointed out that the Development Bank has not been proactive in the areas where it needs to be more active and drastic in the coming time.

To ensure the legal framework for the Development Bank to operate, the Deputy Prime Minister proposed to include specific regulations on the Development Bank when amending the Law on Management and Use of State Capital Invested in Production and Business at Enterprises (Law 69/2014/QH13).

Deputy Prime Minister requested VDB to focus on implementing 6 contents and make creative efforts for sustainable development.

VDB must focus on implementing 6 contents and make creative efforts for sustainable development.

At the same time, the Deputy Prime Minister requested VDB to focus on implementing 6 important contents including: Restructuring the organizational apparatus; new lending activities; debt collection and bad debt settlement; effectively managing and using investment capital for key projects; implementing the conclusions of inspection, examination and audit; improving the effectiveness of coordination with ministries, branches, localities and relevant agencies.

Emphasizing that the Vietnam Development Bank must be proactive, innovative in thinking, and make creative efforts for sustainable development, the Deputy Prime Minister also requested the State Audit to conduct an audit as soon as possible to have data to report to the Politburo on the restructuring phase of VDB.

The Deputy Prime Minister suggested that, in addition to continuing to implement new lending according to Decree No. 78/2023/ND-CP such as lending for social housing and lending for key national projects, VDB should aim to implement lending according to Resolution 57-NQ/TW of the Politburo; study the mechanism of entrusted lending...

The Deputy Prime Minister also requested VDB to focus on debt recovery, especially long-standing bad debts that are difficult to recover; to study and replicate successful new management models; to have effective measures to handle surplus facilities during the restructuring process; and to request the Ministry of Finance to create conditions for VDB to participate in serving ODA projects.

The Deputy Prime Minister also gave his opinions on a number of specific contents, requesting the Ministry of Finance to absorb the opinions of representatives of ministries and branches to complete the draft Decree regulating the organization and operation of the Vietnam Development Bank and amend Law 69./.

Tran Manh

Source: https://baochinhphu.vn/vdb-phai-chu-dong-doi-moi-tu-duy-no-luc-sang-tao-de-phat-trien-ben-vung-102250325144703115.htm