Consulting Services to Assist the DAF in Becoming a More Transparent and Efficient Policy Lending Institution
The Vietnamese Government, after having allocated its own budget as well as ODA to streamline the country’s industrial infrastructure, had to mobilize funds from both home and abroad to build up a financial system for the supply of funds to the business sector. The project was to transform the Development Assistance Fund (DAF) into a development bank and, in the process, improve its autonomy and efficiency and have it specialize in development and industrial finance.
The World Bank announced the bidding for the project supporting establishment of Vietnam Development Bank (VDB), and JERI was commissioned as a consultant. The project was conducted from October 2005 to March 2006. JERI provided its expertise on loan appraisal systems for long-term financing, fund mobilization, human resource management and so forth to strengthen the financial system to support Vietnam’s rapid economic growth.
Capacity Building for VDB
JICA (and previously, for JBIC) announced a project to discuss necessary measures and policies to effectively and efficiently enhance the capacity of Vietnam Development Bank (VDB) to operate as a policy-based financial institution. The project included a financial system framework review as well as a strategy to promote the discussion output in coordination with the May 2006 establishment of VDB. In this project, JERI researched and analyzed issues related to policy-based finance and the current status of the institutional reform.
JICA and JERI held a seminar in Hanoi in June 2007, inviting Vietnamese government agencies and international donor partnership organizations. In the seminar, JERI drew on its research and analysis to suggest effective and efficient means of enhancing VDB’s capacity.
