Development Bank to Supply US$9.4Bln to Economy in 2008-10

Vietnam Development Bank (VDB) plans to supply VND140 billion-VND150 trillion (US$9.4 billion) to the economy in the 2008-2010 period, bringing the total state credit in the 2006-2010 period to VND200 trillion (US$12.5 billion), up 60 per cent from the 2001-2005 period.

In 2008, VDB will disburse VND40 trillion of the state credit capital, representing an increase of VND6.2 trillion from 2007, but a decrease of VND5 trillion from the initial plan.

Deputy Prime Minister Nguyen Sinh Hung said VDB is assigned to disburse the capital amount, which is dependent on investment portfolios of the credit for the State investment and for export.

The Government does not restrain VDB’s credit growth because Vietnam still needs capital to invest in infrastructure, he said.

“Vietnam’s GDP may grow at more than 9 per cent in 2008-2010 and more than 10 per cent in 2011-2020. This target is very high but we can still reach it, providing that we can reorganize economy structure and ensure inputs for economy, so that the country will become an industrial one in 2020,” Hung said.

VDB is tasked to provide state credit for sectors and regions which need investment encouragement to help them develop socio-economic conditions.

 

VDB will have move to providing credit to the buyer – foreign importers, besides providing credit for the seller – domestic exporters, as at present, Hung said.

 

“VDB can widen subjects for loans, as long as those loans must be lent to right subjects and right purposes.”

 

Nguyen Quang Dung, general director of VDB, said his bank this year will focus to allocate capital for key projects. The bank is working with corporations, investors, provincial people’s committees and cities to seek agreements on disbursing capital for unfinished and new projects.

 

By early 2008, about 800 projects have registered for loans, worth total VND17 trillion (excluding Dung Quat Oil Refinery Plant with lending capital of US$500 million.) (Investment)