A high-ranking delegation of Vietnam Bank for Social Policies visits and works with the Nayoby Bank - Policy Bank of the Lao People’s Democratic Republic

(VBSP News) As part of a cooperation program between the Vietnam Bank for Social Policies (VBSP) and the Nayoby Bank (NBB) of the Lao People’s Democratic Republic, with the consent of Mr. Le Minh Hung, State Bank of Vietnam Governor and Chairperson of Board of Directors, from 4 - 7 November 2019, VBSP's high-ranking delegation led by Mr. Duong Quyet Thang, member of the Board of Directors and General Director, visited and worked with NBB. Welcoming VBSP’s delegation were Mr. Vouthi Leuanvylavong, member of the Board of Directors and General Director, and NBB leaders.

General Director of VBSP Mr. Duong Quyet Thang and General Director of NBB Mr. Vouthi Leuanvylavong at the meeting

At the meeting, the two sides reviewed the comprehensive cooperation status over the past time and preliminarily reviewed the results achieved during the cooperation period in 2019-2020.

In particular, in 2019, VBSP has organized two exchange visits on experience sharing for 9 senior officials of NBB in March 2019 in Hanoi and for 16 NBB branches’ officials in Nghe An and Da Nang in September 2019.

Based on the experiences of VBSP, NBB has implemented and deployed the contents such as (i) setting up internal audit and control section to assess risky debts and plan of bad debts recovery to improve the proportion of bad debts in the total outstanding loans, strive to recover 40% of non-accounting monitoring debts and 50% of bad debts; (ii) Piloting trusted lending through mass organizations following the VBSP’s current commune transacton model. Currently, NBB has piloted in 5 branches, including 6 districts, 7 villages, 37 groups and 297 households with a total outstanding loan of LAK 6,333,200,000 (about VND 16.6 billion); (iii) Preparing to deploy deposit services; (iv) Replacing the new Core banking system and developing application software.

View of the meeting

The two sides agreed that in 2020, VBSP will continue to support NBB through sharing experiences in the areas of organizational structure, management, administration, training, human resource development, credit programs mechanisms, strengthen and improve credit quality, policies regimes on capital mobilization, accounting - treasury, banking payment services, internal audit, applying technology and information to banking activities, social media about guidelines and policies.

In the meeting, the two sides agreed to strengthen cooperation at the branch level by implementing the twinning of NBB and VBSP branches: Phong Sa Li - Dien Bien, Hua Phan - Thanh Hoa and Át Ta Pu - Kon Tum.

On behalf of NBB, General Director Vouthi Leuanvylavong showed gratitude to VBSP’s delegation for visiting and working with NBB as well as always sharing operation experience during over 9 years, since the two sides started their cooperation in 2010. Thanks to the experience from VBSP, NBB has applied into practice and markedly improved operational efficiency, especially the quality of outstanding loans and customer service through the local Transaction Point Model. NBB hopes to receive experience sharing support from VBSP at central and branch level in the coming time to continue to improve its operations.

VBSP and NBB signed memorandum of corporation

The two sides agreed that in 2020, VBSP will continue to support NBB through sharing experiences in the areas of organizational structure, management, administration, training, human resource development, credit programs mechanisms, strengthen and improve credit quality, policies regimes on capital mobilization, accounting - treasury, banking payment services, internal audit, applying technology and information to banking activities, social media about guidelines and policies.

In the meeting, the two sides agreed to strengthen further cooperation at the branch level by implementing the twinning cooperation of NBB and VBSP branches: Phong Sa Li - Dien Bien, Hua Phan - Thanh Hoa and Át Ta Pu - Kon Tum.

On behalf of NBB, General Director Vouthi Leuanvylavong showed gratitude to VBSP’s delegation for visiting and working with NBB as well as always sharing operation experience during over 9 years, since the two sides started their cooperation in 2010. Thanks to the experience lessons from VBSP, NBB has applied into practice and remarkably improved operational efficiency, especially the quality of outstanding loans and customer service through the local Transaction Point Model. NBB hopes to receive experience sharing support from VBSP at central and branch level in the coming time to continue to improve its operations.

  Source: vbsp.org.vn