Agriculture is the core market, farmers are companions

Agriculture, farmers, and rural areas are fields with great potential but also contain many risks due to epidemics, weather, and natural disasters. This means that investment credit for this field also faces both opportunities and challenges. Operating in a field considered to have many risks, Agribank always strives to diversify capital channels to the "Tam Nong" area, bringing credit capital to the people.

Key bank in investment and development of "Tam Nong"

Following the direction of the Party, Government and State Bank, Agribank always promotes the pioneering role of a 100% state-owned commercial bank in seriously and effectively implementing monetary and credit policies to serve agricultural and rural development.

As of June 2023, Agribank's total outstanding loans to the economy reached over VND 1.44 million billion, of which about 65% were outstanding loans for investment in the agricultural and rural sectors, accounting for the largest proportion of outstanding "Tam Nong" credit in Vietnam.

Agriculture is the core market, farmers are companions - 1

Implementing the State's policies, each year, Agribank spends thousands of billions of VND to apply preferential interest rates to agricultural production. Currently, Agribank is effectively implementing a number of policy credit programs and 3 national target programs on new rural construction, sustainable poverty reduction and socio-economic development in ethnic minority and mountainous areas.

Up to now, Agribank has implemented loans according to Decisions 63, 65, 68 on support policies to reduce losses in agriculture with outstanding loans of more than 437 billion VND to 3,448 customers; loans for coffee replanting with outstanding loans of more than 156 billion VND to 285 customers; loans for aquaculture development policies according to Decree 67 with outstanding loans of more than 816 billion VND to 188 customers...

Implementing Resolution 30a/2008/NQ-CP of the Government, Agribank supports rapid and sustainable poverty reduction for 61 poor districts with a total loan turnover of over 13,000 billion VND, interest rate support for poor households and policy beneficiaries to borrow over 530 billion VND. Agribank's capital contributes to creating conditions for people to increase income, eliminate hunger and reduce poverty; contributing to reducing the poverty rate of the whole country from 14.5% in 2008 to 4.03% in 2022.

For loans for new rural construction, Agribank has deployed loans to 100% of communes nationwide with a loan turnover of more than 4 million billion VND, outstanding loans reaching more than 600,000 billion VND with 2.2 million customers, of which over 50% of capital for new rural construction is for investment in production, processing, and business in agriculture, forestry, fishery, and salt industries to help increase the value of key agricultural products; nearly 35% of capital is invested in commercial services; over 15% of capital is invested in building rural infrastructure...

Through the implementation of policy credit programs and national target programs, Agribank has been making important contributions to the cause of hunger eradication and poverty reduction, building new rural areas, promoting the restructuring of the agricultural sector, and creating motivation for agriculture to promote its role as the "support" of the economy.

At the same time, the bank propagates and disseminates the Party and State's guidelines, policies, laws, bank credit policies, new technologies in production and processing, etc., contributing to improving people's knowledge and creating absolute trust in the leadership of the Party and State in the cause of agricultural, farmer and rural development.

Agriculture is the core market, farmers are companions - 2

Increase access to capital for people and businesses

While commercial banks "stick" mainly to the cities, Agribank always strives to constantly diversify capital channels, bringing banking services to rural areas and remote areas of the country.

Implementing the Government's policy on "Improving access to banking services that are suitable to the needs and of good quality, especially for people in rural and remote areas", in 2017, Agribank deployed mobile transaction points using specialized cars to expand credit and provide banking services to production households and individuals in rural and remote areas, contributing to the development of commodity production, poverty reduction, and improving income and living standards of people.

In order to improve access to capital for people in agricultural and rural areas, Agribank actively and closely coordinates with local Party committees, authorities, and socio-political organizations such as the Farmers' Association, Women's Association, etc. through lending through groups to transfer capital to promptly meet people's needs. To date, Agribank has deployed over 69,000 lending groups with nearly 1.4 million members.

At the same time, Agribank simultaneously promotes consumer lending, implements the project to develop card services in the agricultural and rural markets, and quickly meets the people's urgent and legitimate capital needs.

Through the implementation of diverse capital channels, Agribank's capital sources contribute to improving people's lives, gradually changing the face of the countryside towards civilization and modernity, contributing to the successful implementation of policies related to agriculture and rural areas, contributing to the restructuring of crops and livestock, gradually improving productivity, increasing commodity products for society, increasing income for households, and actively contributing to the cause of hunger eradication and poverty reduction in rural areas.

Accompanying people and businesses to overcome difficulties

In the context of the economy facing disadvantages due to the impact of the COVID-19 pandemic, with the spirit of companionship and sharing, Agribank synchronously deploys solutions to support people and businesses, contributing to economic recovery and promoting growth.

Implementing Resolution 43/2022/QH15 of the National Assembly, in 2022, Agribank is the pioneer bank and actively implements 2% interest rate support from the State budget; proactively reducing 2,000 billion VND to reduce lending interest rates to support 2.2 million corporate customers, cooperatives, and business households.

Agriculture is the core market, farmers are companions - 3

In the first months of 2023, based on cost reduction and input interest rate reduction, Agribank has adjusted lending interest rates 5 times, directly supporting customers, helping to minimize costs to focus on restructuring and restoring business operations. In May 2023, Agribank reduced lending interest rates to support 2 million customers with a total interest reduction of more than 1,000 billion VND.

Agribank also implemented policies to restructure debt repayment terms and maintain debt groups according to Circular 02/2023/TT-NHNN of the State Bank; exempted and reduced interest and fees to support customers in repaying bad debts and debts that have been handled for risks during the post-pandemic recovery period; allocated a scale of VND 30,000 billion to implement a loan program for social housing, worker housing, and projects to renovate and rebuild old apartments according to Resolution 33/NQ-CP of the Government; reduced interest rates by up to 3% for customers borrowing capital for the purpose of real estate business facing difficulties and having outstanding debts from January 31, 2023 to December 31, 2024...

After 35 years of establishment and development, Agribank has always strived to affirm its position as a leading State-owned commercial bank. In March 2023, Agribank was honored to receive the First Class Labor Medal from the State for its outstanding achievements in lending and developing the agricultural and rural economy, continuing to affirm Agribank's key role in the agricultural and rural sector and contributing to the country's socio-economic development.

In the coming time, Agribank identifies “Tam Nong” as a strategic area in its operation and development. Agribank is always ready to accompany people and businesses to develop production and business, contributing more to the development of agriculture, farmers and rural areas as assigned by the Party and State.

Thanh Ngoc

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