Dong Nai bank: 31 years of establishment and development

Fifty years ago, on May 6 1951, President Ho Chi Minh signed the Decree No. 15/SL on establishing Vietnam national bank (Presently Vietnam State bank). The bank system was founded when the country was separated. Therefore, it has strived to overcome many severe trials so as to ensure financial resources for the victory of two resistance wars and the recovery of the country in peace time. After the Southern Liberation and country reunification on April 30 1975, together with other economic agencies in the province Dong Nai bank was taken over and established. Since then, Dong Nai bank has contributed considerably to the course of socioeconomic development in the province.

Since 1986, with the transfer to the market economy of Viet Nam, the operation of bank was gradually changed in accordance to the market mechanism so as to settle capital demands of the economy, to speed up economic development and to transfer the economic structure of the province. In 1988, its organization and operation once again is altered into 2-level bank model: State management level and trade level. With this model, the bank has gained significant results such as mobilizing over 69 billion VND (4-fold increase) in 1990, debt balance 144 billion VND (11-fold increase) and cash collection increases 16 fold in comparison to that of in 1987.

In the level of State management, the Bank carries out the role of State management on banking activities in the province and to act as an consultant for  local Party Committee and authorities on policies to develop economy. The shift in economic structure has triggered developments of various economic sectors, liberating their potential for production. Thus, the operation of banking system has developed vigorously. In the period from 1991 and 1998, the capital mobilization and debt balance has increased stably. By the end of 1998, capital mobilization increased by 24 fold and debt balance increases 16.5 fold in comparison to that of 1991.

The first 5 years of 21st century, to get ready for the integration into regional and global economy, the banking system in Dong Nai, together with the banking systems of the whole country, has been well-developed in every fields of operation, especially after the Law on Banking was taken into effect. It is no doubt that the constant development of banking system in Dong Nai, particularly in 2000-2005 period, has play a significant role to the course of socioeconomic development in the province.

Presently, the banking network in the province is rather various, consisting of Dong Nai-based State Bank, 6 state-owned commercial banks, one social policy bank, 6 non-state banks, a branch of central credit fund and 19 local credit funds. A lot of market instruments and modern banking service  have been applied to serve customers. The banking system in the province  has diversified  its  services by applying advanced information technology and enhancing its facilities. Recently, it has launched many services such as Visa card, Master card, Home banking, Internet Banking, Phone Banking, etc. Currently, 35 automatic teller machines have been installed at many different places in order to make customers feel more convenient  when they use this service. By the end of 2005, the mobilized capital of banking system in Dong Nai province reaches 15,158 billion VND, increasing 3.44 fold.  9,920 of  which is from local investors, increased 3.8 fold in comparison to that of 2000. The growth rate of mobilized capital is 25 percent yearly. The loan turnover in the province was 27,083 billion dong in 2005, the general debt is 4.740 billion dong.

In addition to accomplishment on professional tasks, Dong Nai Banks is also concerned about the charity activities such as building 35 gratitude houses, 15 compassion houses and 2 classrooms for a nursery school and sponsoring money for Children Protection Fund, Encouraging Study Fund, Fund For Children, Gratitude Activity Fund and regularly mending 400 tombs at heroes cemetery, and taking care of 30  Vietnamese heroic mothers.

In the coming years, services provided by Dong Nai banks will be profoundly enhanced in accordance to  knowledge-driven economy and apply modern technology so as to keep pace with the speed of integration as well as to upgrade service quality for socioeconomic development of the province.

(Translated by THKC)