The Government requested the restructuring of Vietnam Development Bank (VDB) to heighten efficiency.
Vietnam Development Bank faces Government's forced restructuring
Under a recent request by Deputy Prime Minister Vu Van Ninh, VDB has been asked to form a restructuring strategy that would go into 2020.
Reports from the bank were requested to be sent to the Ministry of Finance before submission to the Prime Minister for approval.
The VDB must also review their credit policies concerning exports involving the State's investment, as well as reviewing the past experience of state development banks in other countires, Ninh said.
He added that the bank must be fully aware of its assumed role in developing the nations economy.
The deputy PM assigned the Ministries of Finance, and Planning and Investment as well as the State Bank of Vietnam (SBV) to appraise VDB’s restructuring plan.
The SBV and the Ministry of Finance, in coordination with other relevant agencies, have been given the role of assisting the VDB in the risk appraisal for debts and management operations.
The VDB was established in 2006, with a total registered capital of VND5 trillion (USD239.69 million), The bank was intended to operate as a non-profit institution, with a charter to develop the nation's export markets. The intention was for it to be an institution that facilitated importers and exporters, both foreign and domestic, working within Vietnam.