Functions and tasks of Vietnam Development Bank

Functions and tasks of Vietnam Development Bank (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is Vietnam Development Bank?

According to the provisions of Article 3 of the Charter issued together with Decision 1515/QD-TTgas follows:

- Vietnam Development Bank is a policy bank, operating under the model of a one-member limited liability company with 100% charter capital held by the State.

- Vietnam Development Bank has legal status under Vietnamese law; has charter capital, seal, and has opened accounts at the State Bank of Vietnam, the State Treasury, and domestic and foreign commercial banks; may join the payment system with banks and provide payment services in accordance with the law.

2. Functions and tasks of Vietnam Development Bank

Functions and duties of the Vietnam Development Bank as prescribed in Article 10 of the Charter issued together with Decision 1515/QD-TTg are as follows:

- Fundraising activities:

+ Issuing government-guaranteed bonds in accordance with law;

+ Issuing bonds, promissory notes, certificates of deposit, and valuable papers in Vietnam dong of the Vietnam Development Bank in accordance with the law;

+ Borrowing from Vietnam Social Insurance; loans from domestic and foreign financial and credit institutions in accordance with law;

+ Borrowing for refinancing at the State Bank of Vietnam in accordance with the law and the guidance of the State Bank of Vietnam;

+ Receiving deposits from domestic and foreign organizations;

+ Mobilizing other capital sources in accordance with the provisions of law.

- Credit activities:

+ Lending according to the State's credit policy; lending programs and projects assigned by the Government or the Prime Minister;

+ Credit guarantee for small and medium-sized enterprises to borrow capital at commercial banks according to the Prime Minister's regulations;

+ On-lending of foreign loans of the Government;

+ Providing short-term loans under the Prime Minister's Decision on the principle that the state budget does not compensate for interest rate differences.

- Entrustment and entrustment activities:

+ Receiving entrustment to mobilize capital, entrusting loans according to the provisions of law;

+ Receiving entrustment to operate the credit guarantee fund for small and medium enterprises and local financial funds according to the local development goals;

+ Entrusting credit institutions to perform a number of activities of the Vietnam Development Bank in accordance with the law;

Entrusting, receiving entrustment to provide financial and banking services to customers in accordance with the law.

- Participating in the interbank market; organizing internal payments; providing payment services, foreign exchange services, and other banking services to customers; carrying out foreign exchange activities; participating in the domestic and international payment systems in accordance with the law and the guidance of the State Bank of Vietnam.

- Performing a number of other tasks assigned by the Government and the Prime Minister

3. Capital sources of Vietnam Development Bank

The capital sources of Vietnam Development Bank according to Article 3 of Decision 108/2006/QD-TTg stipulates:

- State budget sources:

+ The charter capital of the Development Bank;

+ State budget capital allocated to projects according to annual plans;

+ ODA capital assigned by the Government.

- Mobilized capital

+ Issuing bonds and deposit certificates according to the provisions of law;

+ Taking loans from the Postal Savings, the Social Insurance Fund and domestic and overseas credit and financial institutions.

- Receiving entrusted deposits of domestic and overseas institutions.

- Non-refundable capital voluntarily contributed by individuals, economic, financial and credit institutions, socio-political organizations, and domestic and overseas associations, societies and organizations.

- Receiving entrusted capital from local governments, economic organizations, socio-political organizations, and domestic and overseas associations, societies and organizations for granting and lending.

- Other capital sources as provided by law.

Vo Van Hieu

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