Vietnam Development Bank has a new chairman

With new personnel for a new development stage, the Vietnam Development Bank (VDB) must become a strong financial institution, making important contributions to the country's sustainable development.

Deputy Prime Minister Vuong Dinh Hue, authorized by the Prime Minister, presented the decision appointing Mr. Pham Quang Tung to the position of Chairman of the Board of Directors of VDB - Photo: VGP/Thanh Chung

On June 6, at VDB headquarters, Politburo member and Deputy Prime Minister Vuong Dinh Hue, authorized by the Prime Minister, presented the decision appointing Mr. Pham Quang Tung to the position of Chairman of the Board of Directors of VDB.

A week ago, the Prime Minister issued Decision 929 appointing Mr. Pham Quang Tung from the position of Deputy General Director of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) to hold the position of Chairman of the Board of Directors of VDB, replacing Mr. Nguyen Quang Dung, the acting Chairman of the Board of Directors of this bank, who retired according to the regime.

In the context of the whole country promoting the implementation of the Resolution of the 12th Party Congress, the socio-economic development plan for 2016-2021 and VDB is in a period of strong restructuring, Deputy Prime Minister Vuong Dinh Hue wishes: "Mr. Pham Quang Tung and all bank officials and employees must turn VDB into a strong financial institution, developing rapidly and sustainably, for the highest goal of sustainable development of the country's economy".

Deputy Prime Minister Vuong Dinh Hue also requested ministries, branches and VDB to complete the legal framework for the organization and operation of this bank. Specifically, VDB must strictly implement Decision No. 1515/QD-TTg dated September 3, 2015 of the Prime Minister on the charter of organization and operation.

The Minister of Finance directed departments and bureaus to closely coordinate with VDB to soon complete the Decree replacing Decree No. 75 on investment credit in the direction of adjusting both investment credit and export credit, ensuring compliance with international commitments; providing direct support to export production enterprises, especially enterprises producing agricultural products for export. The Decree replacing Decree 75 will create legal conditions for VDB to identify the governing body as the Ministry of Finance and implement credit solutions for investment and export.

In short-term lending activities for projects that VDB focuses on lending, the Ministry of Finance and VDB must issue strict regulations, ensure safety and not compensate for interest rate differences for these projects. Regarding lending interest rates, it is necessary to use input interest rates to decide output interest rates; promote administrative procedure reform, increase support for projects in key national areas or in areas where the private sector cannot implement.

Regarding provisioning, the Government leader asked VDB to comply with market regulations and said that the State will not provide widespread subsidies for this activity and that the bank must promote its dynamism. “It is necessary to allow VDB to mobilize capital and lend, while at the same time increasing decentralization and delegation of authority to VDB’s operations. The Ministry of Finance or the Government will not make decisions on behalf of VDB,” said the Deputy Prime Minister.

VDB also promptly submitted to the Ministry of Finance regulations to implement Decision 1515 of the Prime Minister; promulgate financial mechanisms and risk handling regulations, the Project on restructuring and handling bad debts in the next 5 years, the Project on lending working capital and the budget not subsidizing interest rate differences, the Project on supplementing charter capital, and classifying debts for VDB...

The Deputy Prime Minister also asked the leadership and staff of VDB to make efforts and be creative in successfully implementing the targets and tasks in 2016.

According to Chinhphu.vn