Effectively implement the State's credit capital investments to attract borrowers

VCN – Motivated by over VND 200,000 billion of the State’s credit capital investment poured into the economy, key economic projects have been implemented and achieved positive results. Therefore, removal of bottlenecks and obstacles will create more attraction and promote the role of the State's credit capital investments.
Effectively implement the State's credit capital investments to attract borrowers
Lai Chau hydroelectric plant is one of the projects implemented with a partial loan from VDB. Photo: Internet

Promoting and creating premises for socio-economic growth

According to regulations, Vietnam Development Bank (VDB) is a policy bank operating under the model of a one-member limited liability company with 100% charter capital held by the State and for non-profit purposes. Accordingly, the Prime Minister directly exercises owner’s rights and obligations as assigned by the Government or authorizes the Ministry of Finance to implement.

VDB's report said that over the past 17 years, the State's credit capital investments poured into the economy reached over VND200,000 billion, meeting an important part of the capital needs for development of socio-economic infrastructure as well as improving the production capacity of economic sectors through sponsoring and lending about 200 key projects (group A) across the country, including most projects for basic industrial sector.

For example, projects include Son La Hydropower, Lai Chau Hydropower, Dung Quat Oil refinery, Ninh Binh Fertilizer factory, Vinasat 1 and 2 Satellite, Hanoi - Hai Phong Expressway, Bac Lieu Wind power plant, TH True Milk clean and fresh milk plant, Ca Mau Gas-Power-Fertilizer Project…

According to VDB, these projects have come into operation, promoting efficiency, positively impacting the economic restructuring of regions, boosting the country's economic growth, and creating an important premise for the development of industries, fields, and regions that need priority in accordance with the Party and Government's policies and directions in each period.

VDB spends a significant amount of capital lending to projects under social security programs, bringing practical results to the goals of hunger eradication and poverty reduction, and new rural development... In addition, the State's credit capital investments are used to support investment projects abroad such as Xekaman 1 and 3 hydroelectric projects invested in Laos, and socio-economic development investment projects of Corporation 15 poured into some provinces in Laos.

Removing obstacles to attract loans

VDB said that it currently faces many difficulties such as policy mechanisms, lack of financial and human resources... which significantly affect the results and operational efficiency of the system. Therefore, in the VDB restructuring plan and operational orientation 2023-2027 approved by the Prime Minister, the bank aims to implement comprehensive innovation in organizational structure, personnel, administration and technology; and provides new loans for credit capital investments with an average growth rate of about 3-5% for 2023-2025 and about 10% for 2026-2027.

In November 2023, the Government issued Decree No. 78/2023/ND-CP amending and supplementing a number of articles of Decree No. 32/2017/ND-CP dated March 31, 2017 of Government on the State’s credit capital investments with many revised contents. Many bottlenecks and obstacles have been removed, helping to enhance the ability to access the State's credit capital investments.

Specifically, the State’s credit capital investment policies have been revised to focus on lending to large-scale investment projects in the fields of socio-economic infrastructure, industry, and agriculture, difficult arears and especially difficult areas that have a great impact on the economy. The transportation infrastructure projects with large capital needs have been included to the list of borrowers; investment projects in high-tech agricultural zones and high-tech agricultural areas; liquefied natural gas projects have been added to the list.

The maximum level of loan for each project is equal to 70% of the total investment capital of the project (excluding working capital). Outstanding debt for each borrower must not exceed 15% and for a customer group must not exceed 25% of equity capital and the balance of bonds guaranteed by the Government with a remaining term of 5 years or more. The Prime Minister decides on the maximum credit grant exceeding the limit based on the Ministry of Finance’s report and the VDB’s request.

According to Mr. Dao Quang Truong, VDB General Director, with the current equity capital and bond balance guaranteed by the Government, VDB can lend a maximum of up to VND15,000 billion to one customer and VND20,000 billion to customer group. Moreover, the change in the method of determining loan interest rates, and open regulations on credit conditions as well as the VDB authority, will facilitate customers that have investment projects approved by the Government in accessing the State's capital.

Currently, 104 projects have been implemented procedures for loans worth VND 67,430 billion at transaction branches and offices, of which, the disbursement need for 2024 is VND18,018 billion

VDB said it will proactively and actively implement the State's policies, creating attractiveness for borrowers. According to the General Director, VDB will determine and promptly announce interest rates for the State’s credit investment loans based on documents from the State Bank and the Ministry of Finance on average lending interest rate data of domestic commercial banks during the same period. It has fully promulgated regulations to guide, train human resources, save costs to reduce loan interest rates, modernize technology to optimize appraisal time for investment projects.

Leaders of many state-owned and private enterprises highly appreciate the support from the State's credit capital investments.

Mr. Nguyen Hoang, Chairman of Hanoi Supporting Industry Business Association (Hansiba), Chairman of the Board of Directors of N&G Group, said that the State's credit capital investments have supported industrial enterprises, helping to develop infrastructure of industrial parks to meet the global production chain.

By HuongDiu/Ngoc Loan

Related News

Prevent corruption and group interests in developing financial laws

Prevent corruption and group interests in developing financial laws

VCN - In order to prevent corruption, group interests, and local interests, the Ministry of Finance requires its subordinate units to strengthen the building and perfecting legal system and law enforcement organization. Accordingly, the Ministry will strictly handle corruption, negative acts and group interests in policy development.
Open credit flow to support import and export

Open credit flow to support import and export

VCN - Weak demand, reduced orders, pressure from trade defense... thereby leading to a series of financial difficulties for import-export businesses. Therefore, the credit flow to support import and export needs to "flow" properly and meet the needs of businesses.
Strictly control and combat gold smuggling

Strictly control and combat gold smuggling

VCN – The General Department of Vietnam Customs (GDVC) requires local customs departments to strengthen inspection, control and prevention for illegal transportation of gold products across the border, and strictly monitor gold imports and exports of legitimate gold companies.
Minister of Finance Ho Duc Phoc works with WB Country Director for Vietnam

Minister of Finance Ho Duc Phoc works with WB Country Director for Vietnam

VCN - Minister of Finance worked with the World Bank Country Director for Vietnam Carolyn Turk, who came to say goodbye at the end of her tenure.

Latest News

After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.

More News

Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

VCN - In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year. However, to further speed up this work, the Ministry of Finance believed that it needed to urgently overcome problems that have existed for a long time, especially in key projects.
Tax, land rent payment deadlines to be extended this year

Tax, land rent payment deadlines to be extended this year

Payment deadlines for value added tax (VAT), corporate income tax, personal income tax, and land rent in 2024 are set to be extended, involving a total tax value of nearly 84 trillion VND (3.3 billion USD).
Tax compliance management in the digital economy

Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.
Hai Phong: Budget revenue reached more than VND40,000 billion

Hai Phong: Budget revenue reached more than VND40,000 billion

VCN - The results of Hai Phong City's revenue collection achieved a good growth rate, expected to reach hundreds of trillion VND for the third consecutive year.
Price adjustment should be in implemented in appropriate time to control inflation

Price adjustment should be in implemented in appropriate time to control inflation

VCN – The increase in base salary, deposit interest rates, exchange rates and gold prices, and adjustment of prices of public services and State-managed goods are “threats” in price management and inflation control from now until the end of the year. However, Dr. Nguyen Duc Do, Deputy Director of the Institute of Economics and Finance (Academy of Finance), these are not too big impacts, it is necessary to monitor and calculate the appropriate time and level.
Fiscal policy is expanded and flexible to promote economic growth 2024

Fiscal policy is expanded and flexible to promote economic growth 2024

VCN - Recently, the Ministry of Finance has proactively researched, proposed, and submitted to competent authorities as well as issued financial support policies for the economy, with a total of about VND700 trillion. This is a particularly important resource that contributes to promoting the economic recovery process after the pandemic. According to experts, in 2024, flexible and prudent fiscal policy will continue to be the foundation for the economy.
Closely follow the situation, research and propose many solutions about taxes and fees to support the economy

Closely follow the situation, research and propose many solutions about taxes and fees to support the economy

VCN - In 2024, along with evaluating and summarizing the implementation of support solutions that have been issued, the Ministry of Finance will continue to coordinate with ministries and branches to closely monitor the actual situation and forecast the situation of socio-economic development to research and propose to competent authorities about support solutions on taxes and fees to apply in 2024.
"Creativity in revenue collection to achieve set goals in difficult contexts"

"Creativity in revenue collection to achieve set goals in difficult contexts"

VCN - The Ministry of Finance held an online briefing conference to evaluate the implementation of financial and budget work in April and deploy the work program for May 2024. Minister of Finance Ho Duc Phoc chaired the conference.
Strive to effectively implement Global Minimum Tax in Vietnam

Strive to effectively implement Global Minimum Tax in Vietnam

VCN – The application of Qualifying domestic minimum top-up tax (QDMTT) in implementing Global Minimum Tax allows to deduct the value of tangible assets and salaries when calculating top-up tax. This shows that the Global Minimum Tax aims to encourage the actual investment activities in the investment recipient country through the existence of tangible assets and workers, Deputy Director General of the General Department of Taxation Dang Ngoc Minh said.
Read More

Your care

Latest Most read
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year.
Mobile Version