Agribank 'fuels' private enterprises' long-term development

In the process of economic integration and development, the private economic sector has increasingly affirmed its role as one of the important driving forces for growth, job creation and major contributions to the state budget. Today, the private economy has become an essential pillar, accounting for nearly 50% of GDP, creating more than 80% of jobs in the economy and making an important contribution to export turnover as well as developing new industries, especially in the fields of technology, services and innovation.

With that key role, on May 4, 2025, General Secretary To Lam signed and issued Resolution No. 68-NQ/TW on "Continuing to innovate mechanisms and policies to strongly develop the private economy, truly becoming an important driving force of the socialist-oriented market economy". Resolution 68 determined that the private economy has affirmed its important role. The Resolution clearly stated that after nearly 40 years of innovation, our country's private economy has gradually developed in both quantity and quality, becoming one of the important driving forces of the socialist-oriented market economy.

This is an important milestone demonstrating the high political determination of the Party and State in removing barriers, creating a favorable, transparent and fair investment and business environment for the private sector to develop effectively and sustainably. The Resolution not only emphasizes policy orientation but also sets out specific requirements for the political system, authorities at all levels and the banking and financial system, including the important role of commercial banks in supporting the development of the private economy.

Agribank, as a key commercial bank in the agricultural and rural sector, has actively implemented many preferential credit programs to support the development of the private economy. Ms. Phung Thi Binh - Deputy General Director of Agribank said: The private economy is an important driving force for economic growth.

Citing Agribank’s own credit activities, Ms. Binh said that the bank’s total outstanding loans currently reach over VND1.7 million billion, of which more than 60% are allocated to the agricultural, rural and farmer sectors – the main customer group being private economic households. Notably, of the nearly VND500,000 billion in outstanding loans to corporate customers, up to 90% belong to private enterprises.

“From these specific figures, we can clearly see Agribank's commitment and consistent orientation in accompanying and creating conditions for the development of the private economy,” Ms. Phung Thi Binh emphasized.

According to the Deputy General Director of Agribank, to improve access to credit capital, small and medium enterprises first need to improve transparency in financial management, especially accounting books, and at the same time strengthen management capacity. This is a condition for banks to accurately assess the performance and reliability of enterprises, thereby being ready to accompany and provide appropriate capital sources.

On the credit institution side, Agribank affirmed that it always devotes resources to supporting the private economy, especially small and medium enterprises. Specifically, in 2024, the bank implemented 20 preferential credit programs, most of which targeted customers in the private economic sector.

“Since the beginning of 2025, we have implemented 9 preferential credit programs for many target groups, focusing mainly on key areas such as import and export, production and business, small and medium enterprises. At the same time, Agribank has also expanded consumer lending and supported business households,” said Ms. Binh. “This clearly demonstrates Agribank’s role in supporting the economic growth drivers identified by the Party and State.”

According to the plan assigned by the State Bank, in 2025, Agribank will be allocated a credit growth limit of 13%, equivalent to about 230,000 billion VND to be put into circulation. Of this capital, Agribank determines that it will mainly lend to customers in the private economic sector.

Evaluating Agribank's credit sources in private credit, Doctor of Economics Tran Khac Tam, Vice President of the Vietnam Association for Consumer Goods Development - VACOD, said that Agribank is one of the largest commercial banks in Vietnam, with a wide network and a focus on serving agriculture and rural areas.

In private credit, the role of Agribank is clearly demonstrated through its support for agricultural production households and enterprises. In fact, Agribank is the bank with the largest proportion of loans in rural areas, mainly to individuals, households and small enterprises. This is the private sector that accounts for a large proportion of the rural economy of Vietnam. Next is its contribution to poverty reduction. Through preferential lending programs (policies under the direction of the Government), Agribank helps people access capital more easily to escape poverty and develop the economy.

“Agribank's branch network covers remote areas, making an important contribution to popularizing financial services for all people, including those in rural and remote areas,” said Dr. Tran Khac Tam, a doctor of economics.

Sharing about his entrepreneurial journey, Mr. Le Van Binh - Director of Nga Hai Cooperative, the first unit in Ha Tinh province to apply Israeli greenhouse technology to grow melons - recounted an unforgettable milestone in his life: in 1993, seizing the opportunity from the innovation policy, he and a number of other farms joined together to establish a cooperative and approached Agribank to borrow capital to develop production.

“At that time, the director of Agribank Nghi Xuan branch, Mr. Nguyen Sy Han, came directly to appraise. Seeing that the farm was then just a wild land, overgrown with reeds, Mr. Han was both impressed and worried and said: "Mr. Binh, if we don't lend you money, we will lose a "communist soldier" - because we are afraid that a soldier who is not afraid of hardships or difficulties like you will be discouraged. But if we lend you money, we don't know when the bank will get the money back. But I believe in a soldier like you, believe that you can do it, so Agribank will lend you unsecured loans." I know that after that, the branch held many meetings, and finally decided to "break the barrier" to approve a 100 million VND unsecured loan because we need people who dare to make breakthroughs to build our homeland," Mr. Binh emotionally recalled.

In 1993, when the common loans of the people only ranged from 500 thousand to several million VND, Mr. Binh's loan of 100 million VND - equivalent to dozens of taels of gold at that time - was a large loan. He said he had to use two sacks to carry the money, bring it home and hide it under the bed, because at that time the money was mainly in denominations of 5,000 VND.

It was those two sacks of money that changed his life - from a farmer starting out with nothing to a pioneer leading the modern agricultural production movement in the area. Thanks to that vision and boldness, Nghi Xuan district has made a strong breakthrough, becoming the first new rural district in Ha Tinh province. Mr. Binh has not only enriched himself but also inspired hundreds of other households in the area.

Since that first loan, Mr. Binh has been with Agribank for 32 years. All large and small projects of Nga Hai Cooperative - from livestock farming, grape growing to investing in greenhouses for growing melons - have received capital support from Agribank.

“Currently, my family still has a debt of 7 billion VND at Agribank. For the past several decades, the cooperative has only had a credit relationship with Agribank, because this is the bank that understands farmers the most, understands both the opportunities and risks specific to agriculture, wants farmers to get rich and also accepts farmers' risks," Mr. Binh confided.

Also sharing about his entrepreneurial journey, Mr. Hoang Van Long - Deputy Director of Bien Quynh Joint Stock Company (Hoang Mai town, Nghe An province), shared that he started his business in 2018 with countless difficulties, the biggest of which was capital. The founding members had to work together for a long time to raise 2 billion VND to build a factory and purchase initial equipment. The desire to bring hometown products to the national market seemed very difficult when there was no capital to import goods.

“The door of opportunity really opened when Bien Quynh accessed a loan from Agribank. At that time, Mr. Ho Van Hao - Director of Agribank Hoang Mai branch, now Deputy Director of Agribank Nghe An branch - directly came to learn about the situation, encouraged and guided us in developing a business development project. Immediately after that, Agribank disbursed the first loan worth 500 million VND,” Mr. Long recalled.

After 7 years of being accompanied by Agribank, Bien Quynh has gradually developed steadily. Seafood products such as fish, shrimp... are not only consumed in the domestic market but also present in large and demanding supermarket chains such as BigC, Lotte... Notably, in May 2024, Bien Quynh's products were officially exported to international markets such as the US and Hong Kong, marking a major step forward in the journey to bring the local brand to the world.

Mr. Long said that the company is currently implementing a production expansion project, with a plan to build a 1.7-hectare factory with a total investment of about 40 billion VND. “To do business on a large scale, systematically and professionally, private enterprises cannot lack the support of banks. For us, Agribank has always been a partner in every step of development,” Mr. Long affirmed.

Pham Giang

Source: https://congthuong.vn/agribank-tiep-lua-cho-doanh-nghiep-tu-nhan-phat-trien-dai-han-388433.html