Vietnam Development Bank: Supporting Businesses in Effective Investment and Borrowing

DNHN - The Vietnam Development Bank (VDB) is one of the government’s policy banks, providing preferential loans.

Businesses “Rescued” by Loans from the Vietnam Development Bank

In recent times, the VDB’s implementation of the state’s investment and development credit policies has had a significant and positive impact on local economic development programs. It has contributed to tangible results in shifting the economic structure towards industrialisation, modernisation, and rural development. Major programs, projects, and key products have been instrumental in driving regional and national economic growth.

The VDB Can Tho branch has played a significant role in reviving numerous projects in Can Tho City. A notable example is Phuong Chau Maternity Hospital, which received a VDB loan of VND 162 billion to construct a modern 200-bed specialised maternity hospital. This facility meets the healthcare needs of women and children in the region. The hospital’s timely completion and operation have contributed to the development of the Mekong Delta’s medical centre. Phuong Chau Hospital has since expanded significantly in the Mekong Delta and established branches in provinces and cities such as Dong Thap, Soc Trang, and Ho Chi Minh City.

VDB provided a loan of VND 50 billion for a food irradiation plant with a capacity of 15,000 tonnes of products per year. This facility processes and sterilises agricultural, aquatic, and seafood products, as well as medical devices and traditional medicine, ensuring compliance with food safety and hygiene standards before export. This project contributes to the development of Can Tho’s seafood industry and the Mekong Delta region.

Developing New Rural Areas through Canal and Road Concretisation Projects

In line with the economic program directed by the Prime Minister, the Can Tho branch has disbursed VND 2,688 billion to invest in 37 projects. These projects include the concretisation of canals, rural roads, aquaculture infrastructure, and rural craft village infrastructure. This has gradually improved the network of canals within the fields and transformed rural roads into concrete surfaces.

The capital disbursed by VDB for the canal concretisation program in the Mekong Delta region has contributed to transforming the rural landscape. The concretisation of canals within the fields has enabled long-term use and improved irrigation for agricultural products such as rice and vegetables, leading to increased productivity and crop yields. This has modernised agricultural production in many areas, while rural roads in the Mekong Delta have been reinforced and concretised. Aquaculture infrastructure and craft village infrastructure have also undergone significant improvements, creating favourable conditions for industry development, aquaculture, and the enhancement of people’s livelihoods, both for domestic consumption and export. Additionally, investments in the construction of power grids and pumping stations have provided localities with greater control over water resources for agricultural production and flood prevention, mitigating the impact of changing weather conditions.

The program to build residential clusters and housing in flood-prone areas in the Mekong Delta, with a disbursed capital of VND 392 billion, has funded the construction of 21 flood-resistant residential cluster projects. These projects have significantly improved the living conditions of local households, promoting sustainable development and establishing relatively complete and synchronised rural and urban residential areas. For instance, in the flood-resistant areas of Thoi Lai and Co Do districts, residents are now safe during floods and have access to proper housing, eliminating the need to flee from floods as they did in the past. They have better access to culture and civilisation, and opportunities for education and personal development, leading to an overall improvement in their quality of life.

Mr Nguyen Duc Tam, Director of VDB Can Tho Branch, stated that as a state-owned credit institution directly under the government, VDB provides loans to projects in sectors and fields encouraged by the government for development. These include socio-economic infrastructure (projects investing in the exploitation, treatment, and supply of clean water for production and daily life; projects investing in the construction of wastewater and waste treatment facilities in urban areas, industrial parks, economic zones, export processing zones, high-tech parks, hospitals, industrial clusters, and craft villages; projects investing in the construction and development of social housing under legal regulations; projects investing in the infrastructure of industrial parks, supporting industrial parks, export processing zones, high-tech parks, high-tech agricultural zones, and high-tech agricultural areas; projects investing in the construction, expansion, renovation, and purchase of equipment for hospitals and higher education institutions; projects investing in the construction, expansion, renovation, and upgrading of road works, railway works, inland waterway ports, seaports, and airports).

Agriculture and rural areas (projects investing in seafood and agricultural processing plants using advanced technology that is prioritised for investment and development according to the Prime Minister’s Decision; projects investing in industrial salt production plants; projects for centralised slaughter of cattle and poultry; projects investing in infrastructure for the production of livestock and aquatic breeds, and aquaculture). Industry (projects investing in the production of antibiotics, drug addiction treatment drugs, commercial vaccines, and medicines for the treatment of HIV/AIDS; production of veterinary medicines that meet GMP standards; projects investing in power plants using the following energy sources: wind, solar, geothermal, biomass, biogas, liquefied natural gas (LNG), and other renewable energy resources; projects for the production and application of environmentally friendly inventions that are protected by the state in the form of patents or utility solution patents in accordance with legal regulations; projects investing in the production of key mechanical products according to the Prime Minister’s Decision; projects investing in the production of products for the mechanisation of agriculture and rural areas; projects investing in technological innovation towards the use of clean technology; projects investing in buses that use environmentally friendly fuels; projects applying high technology; projects investing in the production of high-tech products according to the list of high technologies issued by the Prime Minister; projects investing in the production of products resulting from the scientific and technological achievements of scientific and technological enterprises in accordance with current legal regulations; projects investing in programs for the development of national products according to the Prime Minister’s decision) and investment projects implemented in areas with difficult or extremely difficult socio-economic conditions.

Thu Hien - Dang Hai