Established by Decision 1232/QD-UBND on August 28, 2012, the Ca Mau Development Investment Fund has, over 12 years, strengthened its financial position, expanded its scope, and improved its effectiveness. It has become an important channel for capital mobilization, making significant contributions to socio-economic development, infrastructure advancement, environmental enhancement, educational improvement, and overall quality of life. Mr. Le Minh Luan, Director of the fund, recently discussed these achievements in an interview with our reporter.
Mr. Le Minh Luan, Director of the Ca Mau Development Investment Fund, presents certificates of merit to exemplary workers
What recent outstanding results has the fund achieved as a key capital mobilization channel?
Since its establishment, the Ca Mau Development Investment Fund has proven highly effective as a capital mobilization channel, successfully fulfilling its mandate of capital preservation and growth. Initially endowed with a charter capital of VND100 billion, the fund's capital has expanded to VND300 billion, with its equity reaching VND334.687 billion as of June 30, 2024. The fund supports investors by providing loans for projects in Ca Mau province and holds a significant stake in the Ca Mau Housing Investment and Development Joint Stock Company, representing 97.23% of the company's charter capital. To date, outstanding loans and investments constitute approximately 85% of the fund's charter capital, with an exemplary record of zero bad debts.
In 2023, the Ca Mau Development Investment Fund demonstrated proactive engagement with enterprises undertaking projects in the province. The fund actively disseminated information about its capital sources and supported interested investors in identifying optimal and suitable credit channels for their projects. Additionally, the fund maintained a hands-on approach by regularly interacting with local businesses to gather insights, review, and evaluate potential projects. It also closely monitored the progress of investments for projects under credit agreements. By the end of 2023, the fund's outstanding loans totaled VND187.952 billion, with a bad debt ratio of 0%.
Over the past year, the Ca Mau Development Investment Fund has continued to effectively manage its investment capital in the Ca Mau Housing Investment and Development Joint Stock Company. The fund's capital contribution to the company was valued at VND56.97 billion. In 2023, the revenue from these capital contributions amounted to VND14.2 billion, with dividends paid at a rate of 25% of the contributed capital. The company has been actively engaged in many projects that support the socio-economic development of the province. Notably, it is spearheading the social housing investment project in Tan Xuyen ward, Ca Mau city. This is the province's first social housing project, encompassing 237 units with a total investment of VND163 billion. The project, slated for implementation from 2023 to 2026, aligns with Plan 139/KH-UBND dated June 13, 2023, by the People's Committee of Ca Mau province, and supports Decision 338/QD-TTg by the Prime Minister, which aims to construct at least one million social housing units for low-income individuals and industrial park workers between 2021 and 2030.
By the end of 2023, the Ca Mau Development Investment Fund received an "A" rating from the Provincial People's Committee. It achieved revenue of VND31,438 billion, exceeding the plan by 102.88% and up 6.7% from 2022. The revenue-expenditure difference was VND 24,184 billion, surpassing the plan by 106.8% and increasing by 9.97% from the previous year. The fund maintained a zero bad debt ratio, underscoring its effective management and commitment to capital preservation and development.
In 2024, the Ca Mau Development Investment Fund aims to retain its "A" ranking and meet all Provincial People's Committee objectives. It is committed to avoiding bad debts and will continue managing its investment in the Ca Mau Housing Investment and Development Joint Stock Company. The fund will focus on expediting the social housing project in Tan Xuyen ward, with about 50 units expected to be completed.
Groundbreaking ceremony of the social housing project in Tan Xuyen ward, Ca Mau city
How do you assess the fund's role in supporting capital for enterprises and projects in the current challenging context? Can you highlight some effective projects funded?
In recent years, especially amid challenging economic conditions, the Ca Mau Development Investment Fund has been highly effective as "seed" capital, facilitating investment and supporting the province's socio-economic development. Offering medium and long-term loans at a fixed 7.2% interest rate—below the average commercial bank rate—the fund has alleviated capital constraints and debt pressures for enterprises. Over 12 years, it has disbursed over VND490 billion in loans and recovered more than VND320 billion in debts, adhering to the Provincial People's Committee’s guidelines and advancing the province’s development goals.
Despite its modest capital scale, the Ca Mau Development Investment Fund has significantly advanced the province's socio-economic infrastructure. It has alleviated the provincial budget's financial burden and promoted local socialized investment. Through strategic investments and project support, the fund has laid a foundation for sustained economic development and future growth in the region.
Regarding typical projects that the fund has supported and invested in with notable efficiency, several examples stand out. First, there is a group of investment projects aimed at developing medium and low voltage power grids and transformer stations across the districts of Dam Doi, Cai Nuoc, Phu Tan, Nam Can, Ngoc Hien, Tran Van Thoi, Thoi Binh, and Ca Mau City. This initiative has a total investment of approximately VND116.286 billion. Second, the fund has invested in rooftop solar power system projects with a total investment of about VND188.983 billion. Third, there are several BOT (Build-Operate-Transfer) investment projects, including the construction of the Hoa Trung bridge over the Bay Hap river, with a total investment of VND50.169 billion. Another BOT project is the construction of the Vam Dinh bridge in Phu Thuan commune, Phu Tan district, with a total investment of VND14.858 billion.
What specific solutions has the fund implemented to facilitate enterprise access to loans while ensuring regulatory compliance, transparency, and investment quality?
First, we regularly review, update, amend, adjust, and supplement our professional regulations based on legal standards and local practical situations. This ensures a solid legal foundation that supports the fund's operations.
Second, we streamline the lending process and procedures to make it easier for customers to access information and complete lending transactions. We aim to shorten the time required for loan appraisal and approval, and simplify loan disbursement procedures to meet customers' capital needs as quickly as possible.
Third, we ensure that our basic lending interest rates are lower than those offered by commercial banks, typically by about 2-3% for similar terms. By offering fixed interest rates, we attract customers and reduce their debt repayment pressure.
Fourth, we focus on training professional specialists who meet the required standards, demonstrate a strong sense of responsibility, and are dedicated to serving customers. We also emphasize the importance of implementing digital transformation solutions.
Fifth, we prioritize publicity and transparency in all activities, and we are committed to preventing corruption and negative practices.
Can you discuss the advantages and challenges the fund has faced, especially since the issuance of Decree 147/2020/ND-CP? What recommendations do you have to address these challenges and enhance the operation of local development investment funds nationwide?
The Ca Mau Development Investment Fund benefits from strong support and guidance from the Provincial People's Committee and its management board, along with close cooperation from relevant departments. With fully established operating regulations and a competitive 7.2% fixed interest rate for medium and long-term loans, the fund effectively attracts investors to support the province's socio-economic infrastructure projects.
However, the fund faces challenges with its legal status and operating model under Decree 147/2020/ND-CP. As a non-budgetary state financial fund, its status remains undefined, lacking designation as a public service unit, economic organization, or credit institution. This has led to issues with land procedures for its headquarters, difficulties in land allocation for direct investments, and restrictions on accepting mortgages on assets like land use rights.
Regarding the charter capital scale, the Ca Mau Development Investment Fund's charter capital, which has been granted and supplemented through both cash and assets, currently stands at VND300 billion. This amount represents the minimum level prescribed by law. Of this capital, over VND240 billion has been invested and lent, leaving a relatively low balance that limits the fund's capacity to finance medium- and large-scale projects as well as direct investments. To address this issue, the fund hopes that the competent authorities will consider increasing its charter capital to enhance its resource base and better fulfill its assigned tasks. With additional resources, the fund will prioritize direct investments in social housing projects. This focus will support the successful implementation of Plan 139/KH-UBND dated June 13, 2023, by the People's Committee of Ca Mau province, which aligns with Decision 338/QD-TTg dated April 3, 2023, by the Prime Minister. This project aims to invest in the construction of at least one million social housing apartments for low-income individuals and industrial park workers in Ca Mau province during the 2021-2030 period.
Additionally, we hope that in the near future, competent authorities will focus on adjusting, supplementing, and refining legal policies related to the organizational and operational mechanisms of local development investment funds. Clear definition of the legal status and operating model of these funds is essential. Such adjustments would enhance the role of development investment funds as effective "financial tools" for local authorities, enabling them to better execute local socio-economic development tasks.
Thank you very much!
By Cong Luan, Vietnam Business Forum
Vietnamese
