Under the Decision, Vietnamese Government commits to sustainability and development of VDB operating as Government policy bank and on the non- profit basis, ensuring bank’s capacity to carry out the State investment, export credit policies and other tasks assigned by the Government and the Prime Minister, thus making contribution to the socio-economic development strategies and plans in different periods .
Always according to the Decision, VDB will maintain an average credit growth of about 10% /year between now and 2020. Its total assets are expected to reach VND 500trillion by 2020. After 2020, this growth will be in pair with socio-economic development requirements. VDB’s equity/mobilized funds ratio as well as equity raising roadmap in order to ensure rational ratio of equity/export credit and investment credit outstanding shall be determined with each period..
VDB is also expected to improve credit quality especially in appraisal, disbursement, debt management shall be increased ; build a NPL classification mechanism consistent with VDB’s operations; set up credit provision funds and measures to settle bad debt raising from programs; be more active in debt collection and credit risk management with target to reduce bad debt ratio to below 7% by 2015, to4% -5% by 2020 and below 3%by 2030
In relation to the bank management, PM requires to have special laws and relations applied to policy banks including VDB. For the meantime, VDB operations will have pursuit the two laws State budget and credit institutions laws. VDB will have a Board of management as 100% state owned organization (instead of Board of Administration). BOM’s members will have more responsibilities in terms of fund and asset management, borrowing interest rate as well as those for export credit and investment credit; credit risk settlement.
VDB development strategy can be divided in three phases, namely thosefrom2013 to 2015; the 2nd phase is from2015 to 2020 and the 3rd phase is from2020.
To accomplish those objectives, VDB needs to revisits legal framework; increase chattered capital; strengthen and improve organizational quality and effectiveness; continue to develop technical and human resources; improve the efficiency of monitoring and supervision of the State management agencies and Bank’s internal control.
Source: VDB