The working session was attended by representative leaders of the Ministry of Finance, the State Bank of Vietnam, the Ministry of Planning and Investment and the Government Office and VDB’s leaders under the Head Office.
Upon VDB General Director Nguyen Quang Dung’s representation on the 2011 performance , 2012 plan of the VDB and some basic contents of the Draft Scheme of Restructuring and Development Orientation of the VDB in the period 2011-2020, Deputy Prime Minister Vu Van Ninh presided over and heard the industry officials expressing their opinions on operation orientation, development model, functions, tasks, mechanisms and policies for performing the tasks of the VDB…
In the ministries’ opinions, for the last five years, the VDB has actually played as a Government’s tool in implementing of the State’s investment and export credits. With the assets of over VND 260 trillions at the end of 2011,VDB has contributed to the economic development, ensuring social security. In the coming period 2011-2015 and vision to 2020, the State’s support in some sectors is necessary. The international experiences also shows that many countries using development bank model, including developed countries, have enjoyed effective socio-economic development . The representative leaders of the ministries and sectors also suggested that, in 2011, the tasks assigned by the Prime Minister to the VDB are increasingly larger since many tasks could not undertaken by other credit and financial institutions. Meanwhile, many mechanisms and policies suitable to VDB’s operations have not been issued timely and synchronously such as the mechanisms of loan classification, risk handling, interest rate and foreign exchange operations ... Thence, the ministries and sectors also proposes to the Government soon instruct the relevant ministries and sectors to coordinate more closely and proactively in settling the mechanisms and policies for VDB’s activities.
Deputy Prime Minister Vu Van Ninh concluded that VDB basically completed the 2011 tasks and working programs under the direction of Prime Minister, Deputy Prime Minister, particularly in the context of difficulties of the world, regional and national economies.
In 2011, the Government was keen to focus the plan of socio-economic development in 2011 under the direction of curb inflation, stabilizing the macro-economy and ensuring the social security. Ending the year of 2011, the economy gained many achievements in stabilizing the macro-economy, adjusting interest rate on the right track , monitoring the banking system’s liquidity under Government control, increasing foreign currency reserves and revenue ưhile the budget deficit and pricing on decrease, etc. These overall results were partly contributed by the whole VDB’s efforts. On behalf of the Government, Deputy Prime Minister Vu Van Ninh highly appreciated and praised the VDB’s collective efforts.
Deputy Prime Minister Vu Van Ninh also agreed with the 2012 plan set out by the VDB. In addition, the Deputy Prime Minister directed that the overall goal of the economy in the period 2011-2015 was to establish a base in the macro-economic stability, thus, it is targeted in the early years to restraining the inflation, stabilizing and growing reasonably macro-economy to achieve the overall goal of rapid and stable economic development.
Thus, the Deputy Prime Minister had some directions on the recommendations of the VDB Restructuring Scheme and strategy. First, it is both the immediate task and long-term one in setting up the mechanisms and policies for VDB’s Organization and Operation Charter, financial management and risk handling, etc., There remained shortcomings in some mechanisms and policies for VDB operation for a long time, whereas the Government and some relevant sectors were closely cooperating in instructing on VDB’s operation. In the coming time, the Deputy Prime Minister asked the relevant ministries and sectors to promptly study and review the mechanisms and policies to modify, supplement and newly issue, and enable VDB to perform Government-assigned tasks. The Deputy Prime Minister agreed to assign the ministries to research to restructure the scope, subjects and level of investment and export credit support; the Ministry of Finance to review Decree No. 75/2011/ND-CP on the State’s investment credit and export credit by giving priority and resources to the key sectors, fields and areas, auxiliary industries, supporting industries, agricultural and rural development for the strategy of national marine economic development; the State Bank of Vietnam to study and issue the mechanism of loan classification in compliance with specific activities of the VDB, a suitable foreign exchange mechanism for the VDB. For the tasks of lending to irrigation rehabilitation and restoring the platforms to overcome the flood, the Deputy Prime Minister agreed to assign the relevant agencies to study to support VDB. An example could be namely as State Budge’s advance to VDB to avoid high funding cost thus reduces the overall economic efficiency of the entire society. Second, it is necessary to assure the VDB legal status in the period from now to 2020 and the subsequent years. It is necessary and need-to-be-done to implement the VDB Restructuring Scheme; and because of the VDB specific activities, this Scheme should be separate from the Scheme of Restructuring the commercial bank system. The VDB must promptly finalize the Scheme to submit the Government for approval. Third, the VDB must coordinate with the relevant ministries and sectors to consult the operation model, functions and tasks of the development banks in foreign countries, especially the developed countries to soon clearly determine basic and long-term activities, functions and tasks of the VDB in the way that the VDB is a Government tool to implement the tasks required by the economy and the State for the strategy of economic and social development in each period, and implementation of the socialist oriented economy; thence, to identify the sectors and fields to focus on and give priority in each period. Fourth, on the basis of clearly defining the model, functions and tasks , the VDB needed to build the appropriate mechanisms and policies to gradually ensure the initiative position in the operation of the VDB, the management of the Government, compensation of the interest rate differences and the supporting mechanisms and policies of the State and State Budget for the operation of the VDB and determine the appropriate roadmap and implementation periods. The Deputy Prime Minister also requested the VDB to soon complete the development projects and strategies in order to consult the ministries and sectors and then submit the Prime Minister for approval and implementation./.
Source: VDB