Tien Giang Development Investment Fund: Catalyst Capital for Priority Projects

Over two decades since its inception, the Tien Giang Investment and Development Fund has progressively evolved in its organizational structure, operational scale, and credit quality. This growth has bolstered its role as the ‘catalyst capital’ for priority projects, thereby making a significant contribution to the socio-economic development of the locality.

After more than 20 years of establishment, Tien Giang Development Investment Fund has grown in terms of organizational structure, scale of operations and credit quality

Effective catalyst capital

The Tien Giang Development Investment Fund was established under Decision 20/2001/QD-UB on June 8, 2001 by the Provincial People’s Committee, as a non-profit, off-budget state financial institution. Its primary responsibilities include conducting direct investment activities, providing investment loans, advancing capital for land development, and offering credit guarantees for small and medium enterprises.

Over two decades of growth, the Fund’s capital has surged to nearly VND1,177.8 billion, marking an increase of over 23 times from the initial VND50 billion in 2001. This includes VND588.6 billion allocated for direct investment, investment loans, and capital contributions for business establishment; VND569.2 billion for the land development capital fund; and VND20 billion for the cooperative development support fund.

Regarding investment loans, the Provincial Development Investment Fund has proactively advised the Provincial Party Committee and People’s Committee and built a list of fields seeking investment in accordance with the province’s development orientation. To date, the Fund has provided capital for more than 200 projects and investment plans in the province, with an approved loan amount of over VND1,250 billion. The operation of the Fund has effectively promoted the role of creating “priming capital” for priority projects, thereby contributing to the successful implementation of the province’s socio-economic development goals.

Thanks to the Fund’s preferential loans, up to now many priority projects in the province have made significant results, such as providing clean water for daily life as well as developing the power distribution network, educational and medical infrastructure, public transportation and industrial cluster infrastructure.

A typical example is the project to improve and develop power grids in new rural communes of the province. With loans worth over VND130 billion from the Fund, the project has helped perfect the power grid system to ensure the daily life of the people and serve production activities, contributing to promoting the province’s implementation of the National Target Program for New Rural Development.

In recent years, the Tien Giang Development Investment Fund has also performed well in advancing capital to project management boards and land fund development centers to carry out land compensation and site clearance, creating land funds for developing new projects. In 2023, Tien Giang province is a “bright spot” in terms of the disbursement rate of public investment capital, contributing significantly to the Fund’s efforts to promptly disburse capital for site clearance. Many key projects in the province, thanks to proactive planning, have been implemented, thereby promoting the effectiveness of investment capital in developing local infrastructure and the socio-economy.

My Tho Cruise Port project was loaned VND50 billion by the Provincial Development Investment Fund and has been effective so far

Expanding customer reach through diverse channels

 The My Tho Cruise Port, a significant project for local tourism development, was financed by the My Tho Port Joint Stock Company with a loan of VND50 billion from the Tien Giang Development Investment Fund. Operational since January 2021, the project has effectively leveraged the benefits of international waterway transport activities.

Recently, the Song Tien Service Development and Investment Joint Stock Company completed the Song Tien Driving Training and Testing Center project in Chau Thanh district, with a total investment of VND52.375 billion. The project was financed with a substantial loan of VND25 billion from the Provincial Development Investment Fund, accounting for 47.73% of the total investment. The company’s representative acknowledged the Fund’s instrumental role in facilitating access to preferential loans, expediting administrative procedures, and ensuring timely capital disbursement in line with project progress, thereby alleviating the company’s capital cost pressures.

In 2022, Ap Bac Private High School in My Tho City embarked on a project to upgrade and expand its infrastructure, with a total investment exceeding VND12 billion. The Provincial Investment Fund provided a loan of approximately VND4 billion, constituting one-third of the total project investment. This financial support facilitated the successful completion of the project within a year, enabling the upgraded facilities to be operational for the 2023-2024 academic year.

In 2023, My Phong Cooperative in My Tho City obtained a growing area code for green-skinned grapefruit that complied with export standards. To bolster the cooperative’s working capital and facilitate market expansion, the Provincial Development Investment Fund extended a loan of VND3 billion at a preferential annual interest rate of 6%.

Nguyen Thi Thuy Linh, Director of the Tien Giang Development Investment Fund, highlighted that the aforementioned projects are among several priority initiatives in the province that have successfully leveraged the Fund’s preferential loan capital. The Fund consistently embodies the ethos of “cooperation-support,” striving to create conducive conditions for businesses, organizations, and investors to access preferential capital.

The Tien Giang Development Investment Fund ensures compliance with regulations and procedures, fosters transparency, and facilitates safe and quality financial investments. It has developed and made available on its website a comprehensive set of regulations and professional processes pertaining to lending and investment activities. These regulations are regularly updated to align with practical requirements.

Song Tien Driving Training and Testing Center project received a maximum loan of VND25 billion from the Fund

In its endeavor to support customer development and enable organizations and businesses to access preferential capital, the Fund reaches out and introduces its services through various channels such as investment promotion conferences, business dialogues, and banking-business connection programs. Furthermore, the Fund maintains close collaborations with departments, branches, and localities to identify and access suitable projects that have received provincial investment approval.

To ensure the safety and quality of capital resources, the Fund has instituted rigorous control measures related to appraisal and disbursement procedures, as well as debt collection practices. Emphasis is placed on the appraisal stage to mitigate risks, and post-disbursement inspections are conducted to enhance credit quality in lending activities.

Looking ahead, the Fund plans to review and refine its business processes to facilitate convenience and elevate professionalism. It will continue to streamline procedures, expedite appraisal and loan disbursement processes in accordance with authority, and ensure legal compliance. The Fund aims to enhance the competencies of its employees and constructing a lean, efficient apparatus capable of fulfilling assigned tasks, said Nguyen Thi Thuy Linh, Director of the Tien Giang Development Investment Fund.

LIST OF INVESTMENT AND LENDING AREAS OF THE TIEN GIANG DEVELOPMENT INVESTMENT FUND IN THE 2021 - 2025 PERIOD 
(According to Resolution 41/NQ-HDND dated August 12, 2021 of the Provincial People’s Council)

TIEN GIANG DEVELOPMENT INVESTMENT FUND 
Address: 40 Hung Vuong Street, Ward 7, My Tho City, Tien Giang Province
Website: www.tigidif.vn - Email: qdtpt@tiengiang.gov.vn
Phone: (0273) 3883375 (Administration Department) - 3971422 (Appraisal and Credit Department)

By Ngoc Tung, Vietnam Business Forum