In addition to providing loans for agriculture, rural areas, and high-tech farming, Agribank's Binh Thuan Provincial Branch also provides loans for industrial and tourism development to help customers have sufficient financial resources for long-term, sustainable investment, contributing to the province's accelerated economic development. To understand this issue better, a reporter from Binh Thuan Newspaper interviewed Mr. Nguyen Huu Cau – Director of Agribank's Binh Thuan Provincial Branch...
Sir, 2023 was a difficult year for the banking industry; how was it for Agribank?
Mr. Nguyen Huu Cau: In 2023, the production and business activities of domestic economic sectors faced many difficulties, especially for businesses in the fields of real estate, construction, import-export, garment, fuel, etc. The disruption to production, supply, and consumption chains impacted the business activities of the economy in general as well as the banking sector in particular.
In response to this situation, closely following the direction and guidance of the State Bank of Vietnam (SBV), Agribank implemented a credit policy focused on concentrating capital for production and business, reducing costs, and lowering lending interest rates to support customers. Priority was given to increasing credit growth for small and medium-sized enterprises (SMEs), and lending to priority sectors. Alongside this, solutions were implemented to restructure repayment terms, waive or reduce interest and fees, and maintain the same debt classification as directed by the Government and the State Bank of Vietnam. Agribank Binh Thuan Provincial Branch accepted profit reductions, readily sharing difficulties and accompanying people and businesses to support customers in overcoming challenges and stabilizing production, such as reducing interest rates on attractive credit programs and proactively restructuring repayment terms. Accordingly, Agribank Binh Thuan reduced deposit interest rates 12 times and lending interest rates 8 times. Currently, lending interest rates at the branch have decreased significantly, ranging from 2% to 4% per year compared to the beginning of the year.
In 2023, Agribank's Binh Thuan Provincial Branch actively implemented solutions to support people and businesses in accessing capital in accordance with the spirit of Decree 31/ND-CP, with a total support capital of up to VND 652 billion. They restructured loan repayment terms and maintained the same loan classification to support customers facing difficulties in production and business activities, as well as those struggling to repay loans for living expenses and consumption. The total restructured principal amounted to VND 2,590 billion, and restructured interest was VND 103 billion. Interest and fees were waived or reduced to support 63 customers in repaying bad debts and debts already written off during the post-Covid-19 recovery period.
To prevent disruptions to production and business activities due to capital shortages for businesses and individuals, and in line with the policies of the Government and the State Bank of Vietnam, Agribank Binh Thuan has implemented a comprehensive range of preferential credit programs for individuals and businesses, such as programs for small and medium-sized enterprises (SMEs); preferential credit programs to finance import and export customers; preferential credit programs for the forestry and fisheries sectors; consumer loan programs for healthcare workers; and preferential consumer loan programs for officials, civil servants, and employees receiving salaries from the state budget…
In addition, Agribank Binh Thuan always fulfills its corporate social responsibility. As of the end of December 2023, Agribank Binh Thuan had sponsored 1,348 million VND for social welfare activities such as: 76 million VND for healthcare; 422 million VND for education; 453 million VND for building houses for poor households; 250 million VND to support the poor during Tet (Lunar New Year); and 147 million VND for other activities.
In 2024, Agribank offered many consumer loan packages aimed at curbing illegal lending, which were highly anticipated by the public. What are your thoughts on this issue?
Mr. Nguyen Huu Cau : To curb illegal lending, Agribank has been implementing preferential credit programs for both individual and corporate customers. These programs not only meet customers' borrowing needs but also serve as an effective solution to curb illegal lending, high-interest loans, and installment payments in the market. In early 2024, Agribank launched preferential interest rate consumer loan programs for individual customers, prioritizing a capital allocation of 10,000 billion VND within its credit structure to provide loans for individual and household consumption purposes. In the coming period, Agribank will proactively issue specific loan products and diversify credit card products for individual customers to meet their daily needs, especially online loan products, applying digital technology to enhance Agribank's competitiveness and create favorable conditions for customers to access loans easily, quickly, safely, and effectively.
The orientation is to promote credit growth in the personal consumption sector, such as: purchasing houses, land, building/renovating, repairing houses for residential purposes, purchasing essential household items (televisions, washing machines, refrigerators, air conditioners, etc.); means of transportation (cars, motorbikes) and other consumption purposes as stipulated in Agribank's current regulations.
Besides promoting agricultural and rural lending according to Government Decrees 55 and 116, we will continue to actively implement credit programs to promptly meet the urgent and legitimate borrowing needs of people in their daily lives, and solutions to help limit illegal lending, in order to enhance people's access to credit, especially in remote and disadvantaged areas.
Binh Thuan's tourism sector experienced a breakthrough in 2023 and is expected to maintain its development momentum in 2024, attracting more tourists. How is Agribank participating in the program to develop the three pillars of the economy, with tourism identified as a "key" sector?
Mr. Nguyen Huu Cau : As a locality with many unique potentials, outstanding opportunities, and competitive advantages, Binh Thuan's economy has been, is, and will continue to make strong strides in restructuring its economy – moving towards a green growth model and sustainable development based on three economic pillars: industry, tourism, and high-tech agriculture. Priority will be given to developing coastal tourism, renewable energy, high-tech industry, ecological agriculture, modern rural areas, and civilized farmers.
In this context, Agribank Binh Thuan participates in developing the province's "spearhead" tourism sector, including: In terms of credit, Agribank Binh Thuan will provide loans for tourism investment projects that are feasible, highly effective, and fully comply with Agribank's lending regulations and legal provisions. In terms of products and services, as part of Binh Thuan province's tourism stimulus activities aimed at attracting tourists to visit and enjoy the area… This is part of the card development plan, expanding the network of automated teller machines (CDMs) and electronic banking transactions nationwide, specifically: CDM Autobank machines, Agribank e-mobile banking services, internet banking services, and contactless payment by waving or lightly touching the POS machine to pay – a cashless payment trend being widely used, alongside domestic and international card swiping and QR code payments via mobile devices. This form of payment is well-received not only for its style and convenience but also for its high level of security, such as faster transaction processing speeds. The ability to store up to 13 times more information allows banks to integrate many useful applications for customers into a single card; increasing security during use and minimizing the risk of cyberattacks (skimming), reducing the likelihood of card forgery as the card doesn't need to be presented to the merchant, preventing the disclosure of printed information on the card, and protecting the PIN number…
Thank you, sir!
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