The Only Bank Where Nearly All Board Members Are Ministers or Deputy Ministers. Assoc. Prof. Dr. Le Thanh Tam

The Only Bank Where Nearly All Board Members Are Ministers or Deputy Ministers. Assoc. Prof. Dr. Le Thanh Tam

Economic Information

The Only Bank Where Nearly All Board Members Are Ministers or Deputy Ministers. Assoc. Prof. Dr. Le Thanh Tam

Assoc. Prof. Le Thanh Tam Emphasizes That the Vietnam Bank for Social Policies Is the Only Bank Where Nearly All Board Members Hold Ministerial or Deputy Ministerial Positions. No Other Country Has This Model.

A view of the conference - Photo: GIA HAN

A view of the conference – Photo: GIA HAN
On the morning of July 2, the Central Economic Commission, the Ho Chi Minh National Academy of Politics, and the Vietnam Bank for Social Policies organized a scientific conference on directions, tasks, and solutions for further strengthening the Party’s leadership over social policy credit in the new context.
The conference supported the development of a project to review the implementation of the Secretariat’s Directive No. 40 of 2014 on strengthening the Party’s leadership over social policy credit.
A bank department head wore a T-shirt into a pharmacy, prompting a bad-luck-cleansing ritual after he left
In his opening remarks, Nguyen Hong Son, Deputy Head of the Central Economic Commission, affirmed that social policy credit is an innovative, deeply humane solution suited to Vietnam’s realities.
However, he said that the international context and situation continue to change rapidly, dramatically, and in complex and unpredictable ways, with many emerging trends placing new demands on social policy credit operations.
These developments also require new perspectives and solutions, particularly to improve the quality of social policy credit operations…
He therefore called for further analysis, discussion, and clarification of the results achieved, limitations, difficulties, obstacles, causes, and lessons learned in implementing Directive No. 40…
Speaking at the conference, Duong Quyet Thang, General Director of the Vietnam Bank for Social Policies, recalled how the bank was established.
Regarding the bank’s name, he said there had been “debate.” Some suggested retaining the name Bank for the Poor because it had been in use for many years. Others proposed People’s Bank, while others suggested Policy Bank.
“But the final choice was Policy Bank, encompassing a bank for social policies and the Development Bank. As for the name Bank for the Poor, although it had been in use for seven years, it had not been well received.
The Bank for the Poor printed calendars every year, but no one would hang them up. A department head once wore a T-shirt into a pharmacy, and after he left, they had to perform a ritual to dispel bad luck because the back of his shirt said Bank for the Poor…,” Thang said, adding that the bank officially began operations on March 11, 2003.
Thang emphasized that the social policy credit model exists only in Vietnam and that many international organizations had reservations when the bank was established.
Under market principles, a credit institution borrows to lend at a positive interest rate, but we lend at a negative interest rate. Rates can be as low as 6%, while market rates are 12%-14%.
“Here, we have combined fiscal and credit policies. Alongside this, we raise funds at the lowest possible cost, sometimes even without paying interest.
The 168,000 borrowing groups will work with residents, with 10,426 commune transaction points… This is a model that stays close to the people, serves the people, and minimizes their costs. This enables policy support packages to be implemented quickly,” Thang further emphasized.

Assoc. Prof. Dr. Le Thanh Tam - Photo: GIA HANAssoc. Prof. Dr. Le Thanh Tam – Photo: GIA HAN

Coverage Ranks No. 1 Worldwide

Assoc. Prof. Dr. Le Thanh Tam of the School of Banking and Finance, National Economics University (NEU), identified nine strengths of the Vietnam Bank for Social Policies.

At the time of its establishment, many international organizations, including the World Bank and ADB, did not rate the Vietnam Bank for Social Policies model highly. However, after 30 years, it has proven to be a suitable model, and many international organizations have come to learn from Vietnam.

Another strength is its extensive operating network. It is the only bank in Vietnam with branches reaching 99.99% of communes.

“It can be said that this bank ranks No. 1 worldwide in coverage; no bank in any other country has achieved this,” Tam said.

She also said that the bank’s operating model is extremely effective and closely connected with local socio-political organizations. Four socio-political organizations are key members.

“This is the only bank where nearly all board members hold ministerial or deputy ministerial positions. No other country has this model.

When carrying out these activities, staff from local political organizations demonstrate greater responsibility and ownership than those at other credit institutions,” Tam added.

However, according to Tam, some limitations remain: products are not yet truly diverse, payment services remain limited, and attracting personnel remains difficult…

State Bank of Vietnam Governor Nguyen Thi Hong Chairs the Bank’s Board of Directors

Board members include Hau A Lenh, Minister and Chairman of the Committee for Ethnic Minority Affairs; Luong Quoc Doan, Chairman of the Vietnam Farmers’ Union; Ha Thi Nga, President of the Vietnam Women’s Union; Ngo Van Cuong, Secretary of the Central Committee of the Ho Chi Minh Communist Youth Union; Mai Thi Thu Van, Vice Chairwoman of the Government Office; Nguyen Duc Chi, Deputy Minister of Finance; and Tran Quoc Phuong, Deputy Minister of Planning and Investment.

Dao Minh Tu, Deputy Governor of the State Bank of Vietnam; Le Van Thanh, Deputy Minister of Labor, Invalids and Social Affairs; Tran Thanh Nam, Deputy Minister of Agriculture and Rural Development; and Pham Hong Huong, Vice President of the Vietnam Veterans’ Association.

There are also two other members: Duong Quyet Thang (General Director) and Nguyen Manh Tu (Head of the Supervisory Board).

THANH CHUNG

Link: https://tuoitre.vn/ngan-hang-duy-nhat-co-gan-nhu-tat-ca-thanh-vien-hoi-dong-quan-tri-la-bo-truong-thu-truong-20240702112507554.htm

 

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.

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