Hai Phong Development Investment Fund: Improving Efficiency of Investment Projects

3:36:36 PM | 11/3/2022

As an off-budget state financial institution, performing the function of development investment and financial investment, over the years, Hai Phong Development Investment Fund has well completed its assigned tasks and promoted capital efficiency, contributing to promoting local socio-economic development.

Hai Phong Development Investment Fund has performed well the role of advance capital for ground clearance for many important traffic projects of the city, contributing to improving the disbursement rate of public investment capital of Hai Phong city

Hai Phong Development Investment Fund was formerly known as Hai Phong Land Development and Investment Fund. On November 16, 2021, the City People's Committee issued Decision 3315/QD-UBND renaming it to Hai Phong Investment and Development Fund.

The Fund is an off-budget state financial institution, self-financed, operating for non-profit purposes, ensuring to cover costs, preserving and developing capital sources. The Fund performs the function of lending and investing in accordance with the law; advance capital to units performing compensation, site clearance and land fund creation according to the approved planning. In addition, the Fund also performs the task of centralized procurement of state assets according to the Decision of the City People's Committee.

By the end of 2021, the Fund's operating capital was VND 821,484 billion (owner's equity accounted for 100%); the average annual increase in the period 2016-2021 was 31.85%/year. In which, the state budget allocated capital increased by 49.08%/year, other funds belonging to equity increased by 11.54%/year.

In the coming time, developing credit activities will be the key task of the Fund in order to create a capital mobilization channel to meet the city's socio-economic development goals. Currently, the Fund has drafted a proposal to approve the preferential lending interest rate and the list of priority investment and lending sectors for the period 2022-2025.

In parallel with development investment activities, the Fund has well performed the role of advance capital for site clearance and land fund development, thereby contributing to improving the disbursement rate of public investment capital of Hai Phong city. Many important projects in the city have reached and exceeded the schedule.

The Fund has advanced capital for the Project Management Boards and Land Fund Development Centers of districts to carry out compensation, site clearance, and create a clean land fund for the city's projects with 172 times of capital advance for 26 units.

Especially, with the efforts and spirit of accompanying businesses and investors, the Fund has strengthened solutions to remove difficulties, determined to disburse and advance capital for important and feasible projects. As a result, many projects, after being appraised, have promptly solved capital difficulties and effectively implemented investment.

In addition, in order to ensure capital efficiency, the Fund regularly inspects and strictly manages the use of advance capital of projects, and actively urges the recovery of advanced capital from due contracts.

Ms. Tran Thi Mai Huong, Deputy Director of Hai Phong Development Investment Fund, said that in recent years the economic growth rate of Hai Phong in the following year was always higher than the previous year. The city is also promoting investment attraction, with many important projects to be implemented in the near future, leading to an increasing demand for capital for investment in developing technical and social infrastructure.

Following the development orientation of the city, in the coming time, the Fund will further promote the effective use of capital of the development investment fund as a financial instrument in various fields, including: education, health, industry, agriculture and rural development, environment, energy, information technology, housing, culture, tourism, commerce and traffic.

“In addition, the Fund continues to improve its organizational structure, build and train staff to meet new tasks, ensuring it will be a strong and professional financial institution, contributing to the promote investment attraction and create a new face for the city," emphasized Ms. Tran Thi Mai Huong.

Phuong Vy (Vietnam Business Forum)