History/Milestones
01/01/2000: Development Assistance Fund (DAF)
The development assistance Fund is established under the Decree No. 50/ND-CP dated July 8th 1999 by the Government to mobilize long and middle term capital, to receive and manage the state capital resource for investment and development credit to execute the government investment and development assistance policies on basis of combination and expansion of state credit issue duties of two organizations:
1. General Department of Development Investment under Ministry of Finance is an organization directly under Ministry of Finance established since December 1994. One of duties of the General Department of Development Investment is to lend at preferential credit rate capital to the governmental projects (including ODA re-lending projects).
2. National Investment Assistance Fund is a state financial organization established since December 1995. It is responsible for mobilizing capital and lending to development investment projects of preferential branches of work or ones in difficult regions as regulated by the Government.
The Development Assistance Fund is a state financial organization, for non profit purpose but to ensure refundable capital and cost compensation. It enjoys the legal personality, has chartered capital, balance sheet, seal and account opened in the state treasury, domestic and abroad banks. The Development Assistance Fund operates under the governmental regulations.
The fund is free of taxes and payments to the state budget to reduce loan interest and guarantee fee.
Chartered capital of the fund is 3,000 billion Vietnam dong.
The Development Assistance Fund started its operation since January 1st 2000.
(Brochure of the Development Assistance Fund)
Main duties of the Development Assistance Fund:
1. Mobilize long and medium term capital, receive state capital resources (including domestic and foreign capital) to implement the national development investment assistance policies;
2. Use the Fund’s capital resource for appropriate and effective purposes;
3. Investment lending and debt collection;
4. Post-investment interest subsidiaries;
5. Guarantee for investors, who borrow capital for investment; re-guarantee for investment funds;
6. Entrust and receive investment capital lending trust;
7. Perform other tasks assigned by the Prime Minister;
8. Strictly comply with the state law and other regulations relevant to the fund’s operation;
9. Periodically report to the Prime Minister and relevant ministries and agencies as regulated.
(Decree No. 50/1999/ND-CP)
On May 19th 2006, the Prime Minister issued the Decision No. 108/2006/QD-TTg establishing the Vietnam Development Bank on basis of reorganization of the Development Assistance Fund to execute the state development investment and export credit policies.
01/7/2006: The Vietnam Development Bank (VDB)
1.1. The Vietnam Development Bank (hereinafter called “the Bank”) was established in accordance with the Decision No. 108/2006/QD-TTg dated 19 May 2006 of the Prime Minister to carry out policies on development investment credit and export credit of the State.
1.2. On 3 September 2015, the Prime Minister signed the Decision No. 1515/QDTTg to issue the Regulations on organization and operation of the Bank, by which:
- The Bank is a policy bank operating under the form of one member limited liability company with 100% state-owned charter capital.
- VDB is a legal entity operating in accordance with Vietnamese laws, having its own charter capital, stamp and account registered at the State Bank of Vietnam (SBV), State Treasury, and at domestic and foreign commercial banks; being entitled to participate in the interbank payment system and to provide its customers with settlement services as regulated by the laws.
- The State owns VDB and manages in a unified way its rights and duties arising from its state-ownership of VDB. The Prime Minister exercises directly his rights and obligations of the owner as assigned by the Government or authorizes the Ministry of Finance (MOF) to certains of them on his behalf. MOF shall exercise the rights and obligations as assigned by the Government or by the Prime Minister as authorization and as prescribed by VDB’s charter. The VDB’s Board of Directors are the direct representative of the Sate owner at VDB and have decisions on issues related to VDB’s operations as prescribed by the VDB’s Charter.
- The legal representative of VDB is the General Director.
- VDB operates for non-profit purposes to carry out credit policies of the State and others as stipulated by the Government or the Prime Minister; The State budget shall compensate interest difference and management fee. VDB is guaranteed by the Government for its solvency and exempted from government tax and contribution obligations to State budget. VDB has a compulsory reserve rate of 0% (zero percent) and does not have to make deposit insurance.
- VDB’s charter capital is VND 30.000 billion. Any charter capital change shall be decided by the Prime Minister upon MOF’s proposal in line with VDB’s requirements, assigned tasks and VDB’s capital adequacy ratio for the period in consideration.
- The VDB’s operation term is 99 years commencing from the effective date of the Decision No.108/206/QĐ-TTg dated 19 May, 2006, of the Prime Minister on the VDB’s establishment
1.3. VDB’s finance management mechanism shall be in compliance with the Decree No.46/2021/ND-CP dated 31 March 2021 regarding the financial management regime and performance evaluation for the Vietnam Development Bank.
Main duties of the Vietnam Development Bank
1. Mobilize and receive capital from domestic and foreign organizations to implement credit policy of the State.
2. Receive the trust of ODA capital resource management re-lent by the Government; receive the trust and allocation of investment lending and debt retirement of customers from home and abroad organizations through trust receipt contracts between VDB and trust organizations.
3. Provide payment services to customer and participate in the payment system at home and abroad serving for all the activities of VDB as regulated by the law.
4. Perform duties of international cooperation in the field of investment and development credit.
5. Perform some other tasks assigned by the Prime Minister.
Reward decisions, reward and emulative titles, etc
2000: Certificate of Merit of the Prime Minister
2001: The Second Rank Labor Medal
2003: The First Rank Labor Medal
2007: Certificate of Merit of the Prime Minister
Emulation Flag of the Government
2008: The First Rank Labor Medal
Emulation Flag of the Government
2009: Emulation Flag of the Government
Certificate of Merit of the Prime Minister
2010: The Third Rank Independence Medal
The Third Rank Labor Medal
2012: The First Rank Labor Medal given by President of the People's Democratic Republic of Laos
Certificate of Merit of the Prime Minister
Milestones, in which VDB has participated and become member of organizations and associations, etc, are as follows:
2006: Become an official member of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)
2007: Become an official member of Vietnam Bankers Association (VNBA)
10/2013: Become an official member of Asian Exim Bank Forum (AEBF)
11/2023: VDB and the GCF signed Accreditation Master Agreement (AMA), officially designating VDB as the NIE of the GCF in Vietnam.
Milestones, in which party, labor union and youth union organizations, veteran association, etc of the VDB have been established, converted, and upgraded, are as follows:
3/2009: Basic party organization of the Vietnam Development Bank was upgraded to the one above the basic level. It has duties to construct functions and obligations, establish the staff of executive committee, appoint party officials, and construct working regulations as regulated.
10/2005: Establish Labor Union of the Vietnam Development Bank, which is the one above the basic level.
10/2008: Youth Union of the VDB became the basic union under the Youth Union of Central Enterprises Block.
8/2012: Establish VDB veterans under Vietnamese war veterans association