The Vietnam Development Bank (VDB) will maintain an average credit growth rate of about 10 percent per year between now and 2020, according to the bank’s medium-term strategies approved late last week by Prime Minister Nguyen Tan Dung.

Such a growth rate will ensure financial safety and consolidate the sustainability and efficiency of a bank which does not target profits to implement Government policy tending.

Any profit will be used to guarantee the bank’s capacity to carry out investment and export lending policies and other tasks assigned by the Government to help fulfill the nation’s socio-economic development strategies and plans in different periods.

According to the approved plans, the VDB will build a roadmap to increase its charter capital to 20 trillion VND (952.38 million USD) in 2015 and 30 trillion VND (1.43 billion USD) in 2020, which is the equivalent to 10 percent of the total State lending for investments and export.

It with concentrate credits on areas including socio-economic infrastructure, supports industries, agriculture and rural areas, education, health care, environment protection, green technology ad protection, green technology and clean and recyclable energy.

The plans will also put a focus on lending to industries which generate high export value and sectors in need of Government support to ensure international commitments.

The bank will complete credit guarantee services for small and medium-sized enterprises to help them gain capital for production and business activities, while enhancing its financial capacity and fortifying risk management.

Dung urged the VDB to review its lending portfolios, borrowers and their projects so than it can restructure capital sources and assure “reasonable” credit growth, improve credit quality in customer assessing, capital disbursing and debt recovering phases, and seek effective measures to deal with bad debt.

He noted that the bank needs to reduce its bad debt ratio to 7 percent by 2015, 4-5 percent by 2020 and below 3 percent by 2030. He tasked the VDB with exploring the possibility of building a separate law to apply for policy banks, which are currently allowed to operate in accordance to the Law on State Budget and the Law on Credit Institutions.

The bank was also asked to reach a capital safety ratio of 10 percent and a total asset value of about 500 trillion VND (23.8 billion USD) by 2020.-VNA