Agree on the policy of increasing charter capital for the Cooperative Bank of Vietnam

On the morning of April 26, continuing the 44th Session, the National Assembly Standing Committee gave opinions on the policy of supporting state capital to increase charter capital for the Cooperative Bank of Vietnam from the state budget.

Governor of the State Bank of Vietnam Nguyen Thi Hong presented a summary of the report. Photo: An Dang/VNA

Presenting the Proposal for opinions on the policy of supporting state capital to increase charter capital for the Cooperative Bank of Vietnam from the state budget, Governor of the State Bank of Vietnam Nguyen Thi Hong said that according to the resolution of the Party Central Committee and regulations of the law, the Cooperative Bank is subject to annual development investment expenditure of the central budget.

Practice also shows that supporting state capital to increase charter capital and improve financial capacity for Cooperative Banks is to meet actual operational requirements, effectively carry out assigned missions, responsibilities and tasks in supporting collective economic development, linking systems, providing financial support and ensuring that credit institutions operate stably, safely and sustainably. Therefore, supporting state capital to increase charter capital and improve financial capacity for Cooperative Banks is necessary and urgent.

From the report contents, based on legal regulations and the ability to balance the state budget, the Government proposes that the National Assembly consider and decide on supporting state capital to increase charter capital to improve the financial capacity of the Cooperative Bank and include it in the General Resolution of the National Assembly session.

Accordingly, approve the policy of supporting state capital to increase charter capital for the Cooperative Bank with an amount of VND 5,000 billion from the central budget development investment expenditure source; assign the Government to direct the support of state capital to increase charter capital for the Cooperative Bank according to regulations; be responsible to the National Assembly for the accuracy of data and scale of state capital support for the Cooperative Bank.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai presented a summary of the inspection report. Photo: An Dang/VNA

Expressing agreement with the Government's proposal, the review report of the Economic and Financial Committee, presented by Chairman Phan Van Mai, stated that the consideration of state capital support to increase charter capital for the Cooperative Bank has a legal basis. However, the Standing Committee of the Committee found that the Government's Proposal has not yet clarified other solutions to increase charter capital according to the provisions of the Law on Credit Institutions 2024; the plan for using charter capital (when increased), the roadmap for increasing capital (disbursement), ensuring strict, effective and safe use goals; not allocating capital just to meet the conditions for the minimum capital safety ratio (CAR) but ensuring that capital is absorbed into actual use. Therefore, it is requested that the drafting agency propose specific capital sources to have a basis for consideration and decision.

Regarding the authority to decide on the policy and procedures for supporting state capital to increase charter capital for the Cooperative Bank of Vietnam, the Standing Committee of the Committee believes that, according to the provisions of the Law on Public Investment 2024, the above proposed capital level does not belong to the level of an important national project, therefore, it is not under the authority of the National Assembly to decide on investment policy and this content is under the authority of the Government.

Concluding the working session, Vice Chairman of the National Assembly Vu Hong Thanh stated that the National Assembly Standing Committee found that increasing the charter capital for the Cooperative Bank of Vietnam was necessary and well-founded; and proposed that the Government, based on clearly identifying the capital source and the ability to balance capital, consider and decide on supporting state capital to increase the charter capital for the Cooperative Bank of Vietnam in accordance with the law.

* Also in this morning's meeting, the National Assembly Standing Committee gave opinions on other cases of exemption or reduction of land use fees and land rents according to the provisions of Clause 2, Article 157 of the 2024 Land Law (including the content of land rent reduction in 2025).

Minister of Finance Nguyen Van Thang presented a summary of the report. Photo: An Dang/VNA

According to the Government's Submission presented by Minister of Finance Nguyen Van Thang, on January 18, 2024, the National Assembly passed the 2024 Land Law, which will take effect from August 1, 2024. In particular, Clause 1, Article 157 stipulates 11 cases of exemption and reduction of land use fees and land rent; Clause 2, Article 157 stipulates: "The Government shall stipulate other cases of exemption and reduction of land use fees and land rent not stipulated in Clause 1 of this Article after obtaining the consent of the National Assembly Standing Committee"; Clause 4, Article 157 stipulates: "4. The Government shall detail this Article".

Then, on January 24, 2025, the Party Central Committee issued Conclusion No. 123-KL/TW on the Supplementary Project on socio-economic development in 2025 with a growth target of 8% or more, contributing to creating a solid foundation to achieve double-digit growth in the period 2026-2030. On December 22, 2024, the Politburo issued Resolution No. 57-NQ/TW on breakthroughs in science and technology development, innovation and national digital transformation... Meanwhile, through a review of the 2013 land law, there are a number of cases of exemption or reduction of land use fees and land rents according to other Decrees of the Government or Decisions of the Prime Minister in addition to the cases of exemption or reduction of land use fees and land rents stipulated in Clause 1, Article 157 of the 2024 Land Law and detailed in Decree No. 103/2024/ND-CP dated July 30, 2024 of the Government.

Therefore, the Government's request for opinions from the National Assembly Standing Committee on other cases of exemption or reduction of land use fees and land rents as prescribed in Clause 2, Article 157 of the 2024 Land Law (including the content of land rent reduction in 2025) has a legal and practical basis.

The Government also submitted to the National Assembly Standing Committee to assign the Government to study and promulgate 11 specific policies for other cases of exemption or reduction of land use fees and land rents as prescribed in Clause 2, Article 157 of the 2024 Land Law after having sufficient legal and practical basis.

The review report presented by Chairman of the Economic and Financial Committee Phan Van Mai stated that the majority of the Committee's opinions agreed on the necessity of issuing regulations on other cases of exemption or reduction of land use fees and land rents as per the Government's Proposal; however, it was suggested that policies should be reviewed to ensure compliance with the principles set out.

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: An Dang/VNA

Concluding the working session, Vice Chairman of the National Assembly Vu Hong Thanh stated that the National Assembly Standing Committee agreed in principle for the Government to issue a Decree regulating other cases of exemption or reduction of land use fees and land rents as prescribed in Clause 2, Article 157 of the 2024 Land Law.

100% of the members of the National Assembly Standing Committee present voted to approve in principle the draft Resolution of the National Assembly Standing Committee on agreeing to other cases of exemption or reduction of land use fees and land rents as prescribed in Clause 2, Article 157 of the 2024 Land Law (including the content of land rent reduction in 2025), as a basis for the Government to issue a Decree on this content.

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