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)
The Vietnam Development Bank (VDB) is established under the Decision No. 108/2006/QD-TTg dated May 19th 2006 by the Prime Minister to execute the state development investment and export credit policies as regulated by the Government. The organizational and operational regulations of VDB are in accordance with the Decision No. 1515/QD-TTg dated September 3rd 2015 by the Prime Minister.
Financial mechanism of VDB is executed in accordance with the Decision No 44/2007/QĐ-TTg dated March 30th 2007 by the Prime Minister.
The Vietnam Development Bank is recognized as legal entity with chartered capital, balance sheet, seal and account opened in the state bank of Vietnam, the state treasury, domestic and abroad commercial banks. In addition, it is allowed to participate in the inter-bank payment system and provide payment services as regulated by the law. The Development Bank inherits all the rights and obligations of the Development Assistance Fund.
The operation of VDB is not profit oriented purposes; its compulsory reserve ratio is 0% (Zero percent); it should not be required for deposit insurance; it is guaranteed solvency by the Government, free of tax and payments to the state budget for development investment and export credit activities. VDB has inherited all the rights and obligations from DAF.
(Report on operation and development strategies in the period of 2006-2010- July 2006; Decision No. 108/2006/QD-TTg; Decision No.1515/QĐ-TTg)
The chartered capital of the Vietnam Development Bank, at establishment , was 5,000 billion dong and now increases to 30,000 billion dong.
Main duties of the Vietnam Development Bank
1. Mobilize and receive capital from domestic and foreign organizations to implement investment and development credit and export credit of the State.
2. Execute the policy of investment and development credit, policy of export credit of the State.
3. 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.
4. Provide credit guarantee for SMEs’ loans from comercial banks.
5. 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.
6. Perform duties of international cooperation in the field of investment and development credit and export credit.
7. 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)
Milestones, in which organizations directly under the VDB (Trang An Company, Binh An Hospital and Vietnam Infrastructure Development and Finance Investment Corporation, etc) have been established, are as follows:
02/2006: Equity participation to establish Trang An advisory and investment Joint Stock Company
9/2007: Equity participation to establish Vietnam Infrastructure Development and Finance Investment Corporation (VIDIFI). VIDIFI has become the investor of Ha Noi – Hai Phong Highway project and other projects of infrastructure construction of urban area, industrial zones, and service and logistics areas. In addition, VIDIFI has also invested in the fields of finance, security, real estate, and effective projects to make contribution to payback for infrastructure construction projects. With the advantage of founding shareholders, VIDIFI will have much advantage of capital, financial, security and real estate investment, domestic and abroad investment movement and attraction.
5/2010: Equity participation to establish Binh An investment and development Joint Stock Company
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