The fund granted by Kien Giang Development Investment Fund (KGDIF) has worked well and played an important role as a source of “seed capital” to attract financial resources from companies for investment projects and prioritized development areas of the province.
The Social Housing Project located at 460 Ngo Quyen is an investment project undertaken by the Kien Giang Development Investment Fund
KGDIF is a non-profit local state financial institution, established on January 22, 2010 under Decision 244/QD-UBND of the Provincial People's Committee. KGDIF mobilizes capital, conducts direct investment, provides loans, and contributes capital for corporate establishment, entrusts and gets entrustment, raises funds for local budgets, and guarantees development investment credit for businesses and performs other tasks assigned by the Provincial People's Committee.
KGDIF Director Phung Phuong Quang said: Since its establishment and operation, trusted and directed by the Provincial People's Committee and the Fund Management Council, closely coordinated by relevant agencies, KGDIF upholds responsibility, tackles difficulties and challenges and completes assigned tasks. The fund pays high attention to investment and lending which plays an important role in attracting investment resources and helps reduce budgetary burdens on projects and priority areas for local development such as infrastructure development, education, health, industry, agriculture and rural development, marine economy, environment and social housing.
Accordingly, closely following the province's socioeconomic development directions, KGDIF expands loan financing to all economic sectors such as State-owned enterprises and joint stock companies, limited liability companies and private companies. The investment funding structure by economic sectors includes manufacturing, agriculture, fishery, education, environment and fishing vessel building. Credit guarantee is also provided by KGDIF for small and medium-sized enterprises to access new investment capital, expand projects, upgrade technological processes and build technical infrastructure by issuing hundreds of credit guarantee certificates for SMEs to borrow capital from commercial banks.
Funded by KGDIF, many key agricultural and rural projects in operation motivated socioeconomic development in key areas. Development investment credit capital at KGDIF also makes an important contribution to business expansion and employment.
Currently, Kien Giang province is on the path of development and integration, facing both opportunities and challenges at the same time, said Quang. Its assigned functions and tasks require very high effort of the Party Committee, the Board of Directors and all the staff of KGDIF. Therefore, its key tasks are to consolidate the organizational apparatus and improve management capacity and operational quality for KGDIF and other off-budget financial funds (like Land Development Fund and SME Guarantee Fund) to work effectively, perform their assigned tasks well in accordance with the law; build and improve operating procedures on investment lending, direct investment in projects, capital contribution, syndication, risk management, investment portfolio management and entrusted fund resource management to standardize professional operations and minimize business risks due to management issues.
At the same time, KGDIF expands lending activities, improves the quality and performance of each development investment loan to ensure credit quality and maintain the ratio of overdue debts and bad debts; quickly approaches and searches for new projects to invest in, provide loans and supports loan demand for socioeconomic infrastructure development investment projects and key local economic projects.
In addition, KGDIF pays attention to training and developing human resources and builds appropriate staff remuneration policies to attract talented and dedicated employees to become a strong and professional financial institution, thus effectively providing the fund for development investment, supporting SMEs to operate and carry out other tasks assigned by the Provincial People's Committee to better support socioeconomic development.
By Nguyen Bach, Vietnam Business Forum
Vietnamese
October 2024
Hanoi