New regulations on financial management for Vietnam Development Bank

(Chinhphu.vn) - The Government issued Decree No. 266/2025/ND-CP amending and supplementing a number of articles of Decree No. 46/2021/ND-CP dated March 31, 2021 of the Government on financial management and performance assessment regime for the Vietnam Development Bank.

New regulations on financial management for Vietnam Development Bank.

Supplementing regulations on charter capital for Vietnam Development Bank

In particular, Decree No. 266/2025/ND-CP supplements Article 6a regulating the addition of charter capital for the Vietnam Development Bank from the following sources: state budget; development investment fund and charter capital supplement reserve fund.

Specifically, regarding the additional charter capital for the Vietnam Development Bank from the state budget, Decree 266/2025/ND-CP stipulates: Every year, the Development Bank is provided with additional charter capital from the state budget to achieve a charter capital growth rate equal to the maximum growth rate of State development investment credit assigned by the Prime Minister annually when meeting the condition of no negative cumulative revenue and expenditure difference at the end of the year immediately preceding the year of preparing the charter capital additional budget. The procedure for preparing the budget, implementing the budget, and finalizing the allocation of additional charter capital from the state budget to the Development Bank shall comply with the provisions of Article 21 of Decree No. 266/2025/ND-CP.

According to Article 21 of Decree No. 266/2025/ND-CP, the procedures for preparing estimates, implementing estimates, and finalizing the allocation of additional charter capital from the state budget to the Vietnam Development Bank are as follows:

The preparation of estimates, implementation of estimates and settlement of capital from the state budget allocated to the Vietnam Development Bank shall comply with the provisions of the State Budget Law, the Public Investment Law, this Decree and relevant legal documents.

In case the actual amount of interest rate subsidy and management fee is larger than the budgeted amount, the difference in the budget allocation will be included in the budgets of the following years. In case the actual amount of interest rate subsidy and management fee is smaller than the budgeted amount, the difference in the budget allocation will be implemented in accordance with the provisions of the State Budget Law, the Public Investment Law and guiding documents, amendments, supplements or replacements (if any).

Regarding the additional charter capital for the Vietnam Development Bank from the development investment fund and the charter capital supplement reserve fund, the Decree stipulates as follows:

Every three years, the Vietnam Development Bank shall prepare a plan to supplement charter capital (specifying the level of charter capital supplementation) from the development investment fund and the Development Bank's charter capital supplement reserve fund (if any) to report to the Ministry of Finance for submission to the Prime Minister for approval after receiving comments from the State Bank of Vietnam.

Based on the charter capital supplement plan approved by the Prime Minister and the audited annual financial report of the Vietnam Development Bank, the Development Bank shall carry out the transfer from the development investment fund and the charter capital supplement reserve fund to increase the charter capital of the Development Bank.

Amendments to regulations on capital contribution to establish enterprises

According to Point h, Point i, Clause 1, Article 8 of Decree No. 46/2021/ND-CP, the Vietnam Development Bank is allowed to use capital to buy, sell, discount, rediscount valuable papers and contribute capital to establish subsidiaries, participate in domestic affiliated companies in accordance with the provisions of law and the Charter of organization and operation of the Development Bank and perform a number of other tasks assigned by the Government and the Prime Minister.

Decree No. 266/2025/ND-CP amended and supplemented Points h, i and m, Clause 1, Article 8 of Decree No. 46/2021/ND-CP in the direction of adding specific regulations on types of valuable papers that are allowed to be bought and sold to ensure clarity and strictness and amending regulations on capital contribution to establish enterprises to comply with the legal status of the Vietnam Development Bank.

According to the new regulations, the Vietnam Development Bank is allowed to use capital to buy, sell, discount, and rediscount valuable papers including: Government bonds; Government-guaranteed bonds; local government bonds; and State Bank bills in accordance with the law.

The Vietnam Development Bank is allowed to use capital to contribute capital to establish enterprises in accordance with the provisions of law and regulations of the Government on the organization and operation of the Vietnam Development Bank and is allowed to use capital to carry out activities according to agreements with sponsors and other tasks in accordance with the provisions of law.

Changing some specific mechanisms during the restructuring period

At the same time, Decree No. 266/2025/ND-CP also amends and supplements Article 40 of Decree No. 46/2021/ND-CP on a number of mechanisms during the restructuring period.

Under the new regulations, the Vietnam Development Bank implements a number of mechanisms during the restructuring period according to the decision of the competent authority, including:

- It is not necessary to deduct the accumulated negative difference in revenue and expenditure (if any) when determining equity capital as prescribed in Article 7 of this Decree to determine the lending limit of the Vietnam Development Bank according to the provisions of law until the accumulated negative difference in revenue and expenditure is resolved.

In case the financial results in the year are in surplus, before compensating for the deficit from previous years, the Vietnam Development Bank is allowed to deduct a maximum of 01 month's actual salary but not exceeding 15% of the financial results for the reward fund, employee welfare fund and bonus fund of members of the Executive Board, members of the Board of Directors and members of the Supervisory Board.

In case the total cost of capital mobilization is less than the total income from capital use as prescribed in Clause 3, Article 19 of this Decree, the difference shall be used by the Vietnam Development Bank to set up credit risk provisions as prescribed in Clause 1, Article 16 of this Decree and offset accumulated losses.

Phuong Nhi

Source: https://baochinhphu.vn/quy-dinh-moi-ve-quan-ly-tai-chinh-doi-voi-ngan-hang-phat-trien-viet-nam-102251017163909856.htm