2:13:52 PM | 10/12/2018
Hau Giang Development Investment Fund (Hau Giang DIF) was established under Decision 1569/QD-UBND dated July 30, 2012 of the Hau Giang Provincial People’s Committee. During six years of not-for-profit operation, Hau Giang DIF has fulfilled its role as a bridge linking enterprises and local authorities, effectively providing loans, and promoting local socioeconomic development. To learn more about its activities and contributions, the Vietnam Business Forum Magazine has an interview with Mr Dang Van Ngam, Director of Hau Giang DIF. Duc Binh reports.
Could you please tell us about the operation Hau Giang DIF for the last six years?
Since its inception, Hau Giang DIF has received the valuable support of the Provincial Party Committee, the Provincial People’s Council, the Provincial People’s Committee and other provincial agencies; the close guidance of the Board of Trustees; the close administration of the Board of Directors; and the intrinsic solidarity and enthusiasm of all the employees. Despite still facing difficulties, the fund has achieved initial positive results: Rising revenue and profit year after year. Especially, in 2017, the fund made total revenue of VND63.3 billion, 56.6 percent higher than the plan and a profit before tax of VND17.8 billion, 89 per cent higher than the plan. As a local financial institution that performs development investment and financial investment, we have always fulfilled our functions and tasks and contributed local socioeconomic development. The fund has provided loans for prioritised investment projects and directly invested in three projects in the province.
Hau Giang DIF works as a policy bank. It does not work for profit but it must balance its revenue and expenditure and preserve and develop its capital base. Therefore, financial security is a matter of concern of the Board of Trustees and the Board of Directors. To do that, all employees must be always aware of their responsibility, constantly improve professional skills, gather information, timely update regulations, and at the same time, spend funds efficiently and economically. Hau Giang DIF always fulfils its assigned tasks, increases revenue and profit year after year, and ensures better incomes and livelihoods for its employees.
How has Hau Giang DIF worked together with partners and customers?
Hau Giang DIF has always created the most favourable conditions for its partners. Our difficulty is limited resources amid rising capital demand for projects and enterprises. Being aware of its role, functions and duties and being supported and facilitated by provincial leaders, the Fund always strives to mobilise capital and provide loans for capital-short projects to ensure their progress. So far, Hau Giang DIF-financed projects have been helping local socioeconomic development.
According to current regulations, Hau Giang DIF only provides loans for qualified organisations and enterprises. Base interest rates approved by the Provincial People’s Committee are usually lower than market rates introduced by commercial banks. Therefore, eligible entities are able to access lower rate capital.
How have you coordinated with stakeholders to carry out monetary policies to support local socioeconomic development? How about its outcomes?
To carry out this task, we regularly monitor the use of loans borrowed by borrowers to ensure high efficiency and right purposes; appraise new loan applications in a prudent and proper manner so as to preserve and develop the capital source and facilitate potential entities to access loans. We also receive State budget and entrusted funds to invest in socioeconomic infrastructure development in Hau Giang province when the provincial government approves and seeks potential investment projects to ask the Board of Trustees to approve investment. Furthermore, the Board of Directors directs its professional divisions to study fields allowed for its investment lending and study to apply policies and procedures to speed up investment in local projects, thus generating economic interests for the Fund in particular and facilitating local socioeconomic development in general. Currently, the Fund is raising capital to finance local projects and enhance its performance.
Professionally, we attach importance to developing clear, transparent and streamlined regulations and procedures to facilitate customers to access its credit and, at the same time, pay attention to training its employees with good moral values and professional qualifications in order to meet working needs.
What is your development direction in the 2018 - 2020 period?
To date, Hau Giang DIF has effectively fulfilled its functions. In the coming time, we will continue to implement and complete ongoing investment projects according to regulations and schedule. We will also conduct surveys and seek more investment opportunities to boost our working performance and contribute more to the State Budget. The Fund will consult with the Board of Trustees and the Provincial People’s Committee to finance at least three new projects from 2018 to 2020.
Moreover, we will focus on appraising loan projects when customers submit eligible applications. We will also preserve and develop capital base and raise more funds to strengthen our financial capabilities and outdo what we have achieved.
Thank you very much!
Vietnamese
10/12/2024
Hanoi, Ho Chi Minh City