Ninh Thuan Provincial Development Investment Fund: Fueling Development Investment, Driving Socio-Economic Progress

4:25:27 PM | 5/28/2024

Established over a decade ago, Ninh Thuan Development Investment Fund has consistently evolved, solidifying its position as a strong financial conduit, providing effective support to many projects and businesses through its lending services.

The head office of the Ninh Thuan Provincial Development Investment Fund

The Fund, an off-budget State Financial entity, was instituted by the People’s Committee of Ninh Thuan province, as per Decision 25/2012/QD-UBND dated May 31, 2012. It operates with a focus on capital preservation and growth, not profit, and executes lending and investment functions locally in accordance with regulations.

The Fund’s activities include: Mobilizing medium and long-term capital from domestic and foreign organizations; Providing loans; Investing in projects; investing in establishing economic organizations; Investing in capital contributions, purchasing shares and capital contributions of economic organizations; Entrusting loans and investments; Accepting entrusted management of the Provincial Land Development Fund and Credit Guarantee Fund for provincial small and medium-sized enterprises; Executing the operation of issuing local government bonds as authorized by the Provincial People’s Committee in accordance with the law.

The Ca Na Market project located in Thuan Nam district

Reflecting on the Fund’s evolution, Mr. Phan Quynh Dao, Director of Ninh Thuan Development Investment Fund, attributed its growth and success to the unwavering support and attention from the Provincial Party Committee, People’s Council, Provincial People’s Committee, Fund Management Board, and local departments and branches. The collective determination and efforts of the Fund’s officials, employees, and workers have enabled it to expand in terms of organizational structure, operational scale, and credit quality, thereby achieving rapid, sustainable growth and effectively fulfilling its assigned tasks.

Ninh Thuan Development Investment Fund has taken a proactive approach in constructing a list of socio-economic infrastructure investment fields for each stage, aligned with the local development priority orientation. This list has been submitted to the Provincial People’s Council and People’s Committee for approval, serving as a foundation for regulated investing and lending activities.

Project of the On-Demand Medical Examination and Treatment Department at Ninh Thuan Provincial Hospital

In recent years, the Fund has provided loans for investment projects in various fields, including health and education socialization, public transport infrastructure development, social housing construction, new rural market establishment, rural power grid infrastructure expansion, and investment in recycling systems and environmentally friendly products. To date, the Fund has offered medium and long-term loans for numerous investment projects in the province, either through direct or syndicated capital and co-financing loans.

Some notable projects funded by the Ninh Thuan Development Investment Fund include the Ca Na Market Project in Thuan Nam district, the D7-D10 residential area Social Housing Project, the Medical Examination and Treatment Department Project at the request of Ninh Thuan Provincial Hospital, the Tri Duc General Medical Clinic Project, Hoa Sen 5 Kindergarten Project, the Investment Project in Waste Collection Vehicles to Recycle and Reuse Waste and Environmentally Friendly Products, and many Electrical Works Renovation Investment Projects.

In addition to its lending services, Ninh Thuan Development Investment Fund has effectively executed direct investment activities in urban infrastructure development projects, urban embellishment, and new residential area construction. These initiatives, which are part of the investment fields issued by the Provincial People’s Committee, include the Cau Quan Residential Area Project in Ca Na commune, Thuan Nam district, and the Residential Area Project on Minh Mang street, Do Vinh ward, Phan Rang - Thap Cham city. These projects have not only invested in comprehensive technical infrastructure and put it into effective use, but also preserved and developed capital, contributed to state budget revenue, and facilitated socio-economic development.

According to Mr. Phan Quynh Dao, the Fund’s investment and lending activities ensure compliance with regulations regarding the right subjects, categories, conditions, limits, and decision-making authority, thereby preserving and developing capital. Upon completion and operation, these investments prove effective. The investment loan capital of the Ninh Thuan Development Investment Fund has served as a catalyst, attracting financial resources from various economic sectors to participate in implementing investment projects. Particularly in the current challenging economic context, the Fund’s preferential interest rates and stable capital sources have motivated and supported businesses to overcome capital difficulties and implement projects that ensure progress according to plan.

Hoa Sen 5 Kindergarten Project

Beyond the effectiveness of its investment and lending activities, Ninh Thuan Development Investment Fund has also excelled in the task assigned by the Provincial People’s Committee of managing the activities of the Provincial Land Development Fund and Credit Guarantee Fund for small businesses. The Fund ensures that these Trusted Funds are well organized and effectively implemented to perform their functions and tasks in accordance with regulations.

Building on its accomplishments, Ninh Thuan Development Investment Fund is poised to continue its growth trajectory, with a vision to evolve into a robust, professional state financial fund that plays a pivotal role in advancing the socio-economic development of the province. The Fund is committed to expanding its operating capital, broadening its lending activities, and increasing direct investments in projects that meet the right criteria, conditions, feasibility, efficiency, and effectiveness for capital recovery. It also aims to effectively manage the activities of other state financial funds established by the Provincial People’s Committee.

Simultaneously, the Fund is proactive in reviewing and supplementing its operating regulations and enhancing operational processes to ensure compliance with current legal regulations. It places a strong emphasis on stringent control measures spanning appraisal, disbursement, capital use inspection, and debt recovery. Special attention is dedicated to the appraisal stage to minimize risks and post-disbursement inspection to enhance credit quality in lending activities.

Furthermore, the Fund prioritizes the improvement of governance and administration, striving to build a streamlined, dynamic, effective, and efficient organizational structure. It also focuses on training and nurturing a qualified workforce to effectively perform assigned tasks, thereby fostering an environment of continuous learning and growth.

By Nguyen Bach, Vietnam Business Forum