Vietnam Development Bank affirms its role as a financial institution of the Government

(Chinhphu.vn) - During the 2020-2025 term, the Party Committee of the Vietnam Development Bank (VDB) has focused on comprehensively leading all aspects of work, gradually improving operational efficiency, contributing to affirming its role as a development financial institution of the Government.

The 4th Congress of the Party Committee of the Vietnam Development Bank (VDB), term 2025-2030 - Photo: VGP/HT

Remove bottlenecks, improve finances

Before being directly under the Government Party Committee according to Decision No. 243-QD/TW dated January 24, 2025 of the Politburo , the VDB Party Committee used to be a grassroots Party Committee under the Central Enterprise Bloc Party Committee. Adjusting the organizational model in many stages has helped ensure close and effective leadership from the Central to the grassroots level.

Right from the beginning of the term, the VDB Party Committee identified inspection, supervision, and anti-corruption and negativity as key tasks. Inspection of leaders was strengthened, along with serious handling and overcoming of post-inspection problems, contributing to tightening discipline and order throughout the system.

Financially, VDB has gradually improved the revenue-expenditure gap: from a negative of more than VND 1,100 billion in 2020, down to a negative VND 666 billion in 2021, moving towards a positive gap from 2022. The goal of offsetting all accumulated losses is expected to be completed by 2027.

Since the end of 2023, after the interest rate mechanism issue was resolved by Decree 78/2023/ND-CP, VDB has signed 34 new credit contracts with a total capital of about VND 14,000 billion, disbursing more than VND 4,100 billion - creating a new impetus for credit growth.

Comrade Le Van Hoan - Party Secretary, Chairman of the Board of Directors of VDB - Photo: VGP/HT

Restructuring and improving organizational quality

By 2025, VDB will have 12 units at its headquarters and 29 branches and transaction offices nationwide. VIDIFI Corporation - the unit directly managing the Hanoi - Hai Phong expressway - continues to operate effectively, contributing stable revenue over the years.

During the term, the VDB Party Committee was assessed to have fulfilled its tasks well; the rate of Party organizations and Party members fulfilling their tasks well and excellently is increasing. By 2024, 100% of affiliated Party organizations and more than 96% of Party members will have fulfilled their tasks well, of which nearly 15% will have fulfilled their tasks excellently. On average, each year, the entire Party Committee will admit more than 20 new Party members.

Political and ideological work is carried out through various channels: Party cell activities, training classes, internal fanpages, etc., creating positive changes in political capacity and awareness for cadres and Party members.

The VDB Party Committee also issued many major resolutions such as: Resolution on restructuring for the period 2023-2027; Resolution on digital transformation to 2025, vision 2030. Thereby, the apparatus was streamlined, the payroll was reduced, and the quality of human resources was significantly improved.

Digital transformation and community responsibility

VDB's Information Technology Modernization Steering Committee was established to develop a comprehensive digitalization strategy until 2035, replacing core software, digitizing business data, increasing decision support capabilities and risk warning.

Along with that, VDB also focuses on social responsibility. During its term, the bank has spent nearly 14 billion VND on social security work, supporting the poor, building solidarity houses and implementing charity programs.

Overall assessment, VDB leaders said that the system operated stably, achieving many targets on restructuring, debt settlement, credit growth; Party building work had many positive changes; the revenue-expenditure gap changed from negative to positive. However, some targets such as bad debt settlement, staff income and internal mechanism improvement still need to be improved.

The Executive Committee of the Party Committee of the Vietnam Development Bank for the 2025 - 2030 term was launched - Photo: VDB

Phase 2025–2030: Enhancing Government Financial Institutions

In the coming term, VDB aims to become a strong financial institution, affirming its role as a medium- and long-term financial tool of the Government.

Specific targets include an average annual growth in state investment credit of 10%; offsetting all accumulated losses by 2027; achieving financial targets from 2028; sharply reducing the bad debt ratio; and increasing asset size by 5% compared to the beginning of the term.

To achieve the goal, VDB will synchronously deploy solutions: increase autonomy; reform internal mechanisms; improve operational efficiency; restructure the organization; streamline staff; promote technology application and digital transformation; effectively manage risks; issue government-guaranteed bonds; build a corporate culture associated with discipline.

VDB is also committed to implementing strategic breakthroughs including: perfecting internal governance mechanisms, innovating organizational models, improving human resource quality and promoting comprehensive digital transformation.

The VDB Party Executive Committee for the 2025-2030 term consists of 23 comrades (4 comrades added and completed during the term). Comrade Le Van Hoan - Chairman of the Board of Directors of VDB is the Party Secretary, Comrade Dao Quang Truong - General Director and Comrade Nguyen Gia The are the Deputy Party Secretaries.

Mr. Minh

Source: https://baochinhphu.vn/ngan-hang-phat-trien-viet-nam-khang-dinh-vai-tro-dinh-che-tai-chinh-cua-chinh-phu-102250806172202624.htm