37 years of solid foundation, ready to accelerate for the new era

[Emagazine] Agribank: 37 years of solid foundation, ready to accelerate for the new era

Throughout the 37-year journey of persevering in its historic mission of “Tam Nong”, Agribank has built a solid financial foundation, holding the second largest market share and customers in the system. Along with the country’s innovation, Agribank is also undergoing a strong digital transformation, ready to accelerate in the new era.

Established in 1988, at the same time as the agricultural contract revolution, Agribank has always accompanied the development and innovation of the agricultural sector and the country. Not only a witness, Agribank is also a companion helping the agricultural sector gradually transform, creating a revolution over the past 37 years.

That was the agricultural contract revolution of 10 and the food program in the 90s - the breakthrough that took our country from a place of hunger to the second largest rice exporter in the world. That was the support of thinking that transformed agriculture from backward production to clean agriculture, high-tech agriculture, large-scale fields, and the possession of dozens of billion-dollar export products... All of those successful marks of the agricultural sector cannot be without the presence of Agribank.

Agribank's steady capital flow into the agricultural sector has contributed to realizing Resolution 26 on agriculture and rural development of the Party and Government, creating revolutions in the agricultural sector, making agriculture always a solid pillar of the economy.

Persistently upholding its historical mission, Agribank not only has no rivals in the “three-agricultural” battlefield but also becomes one of the largest banks in Vietnam, owning the largest network and the largest staff in the system. In addition, Agribank is also one of the banks with the largest customer base and market share in the system.

Up to now, Agribank is the only bank in the market with a loan balance of over 1 million billion VND, holding an overwhelming market share in this field. Along with the big 4 group, Agribank is the bank with the largest credit scale in the system (1.72 million billion VND).

Agribank is the only commercial bank with 100% charter capital held by the State, with the largest scale and network of operations in the system of credit institutions in Vietnam with nearly 2,300 branches, transaction offices and nearly 40,000 officers and employees, and is the only commercial bank present in 9/13 island districts. nationwide. Possessing a wide network and a large number of employees helps Agribank cover all regions of the country, with staff in charge of each commune, maintaining an unshakable position in the agricultural market.

With a large network, it is not surprising that Agribank is one of the banks with the largest capital today (over 2.1 million billion VND). A special feature of Agribank is its very sustainable deposit structure because the main source of deposits comes from residents. Compared to the time of its establishment, the total asset size and capital size of Agribank have increased by about 2,000 times. Agribank's operations have achieved stable growth in terms of scale, structure, quality and efficiency with total assets reaching 2.22 million billion VND.

In particular, Agribank is currently the only 100% state-owned commercial bank, and is also a strong arm in implementing the state's policy credit packages.

Currently, Agribank is effectively implementing 07 policy credit policies, 03 national target programs on new rural construction, sustainable poverty reduction and socio-economic development in ethnic minority and mountainous areas. Agribank's capital accounts for the largest market share of agricultural and rural investment credit in Vietnam, actively contributing to the cause of building and developing the country's socio-economy, ensuring national defense and security.

Agribank seriously implements preferential credit programs for forestry and fishery loans, social housing loans, worker housing loans, renovation and reconstruction of old apartments according to Resolution 33/NQ-CP of the Government... The scale of special credit programs, preferential interest rate credit (interest rate 2-3% lower than normal loan interest rate) at Agribank is currently up to half a million billion VND.

Agribank has deployed over 64,000 loan groups, a mobile transaction point model using specialized cars with nearly 4,000 transaction sessions serving tens of thousands of customers, especially in rural, mountainous, remote and isolated areas, with the motto of not letting any farming household with effective production and business plans lack capital.

Agribank is also the pioneer bank in implementing a preferential credit package of 50,000 billion VND to develop clean agriculture and high-tech agriculture.

Currently, Agribank is the key bank implementing the loan project for 1 million hectares of high-quality and low-emission rice cultivation in the Mekong Delta in the pilot phase until the end of 2025 and continuing to implement the program until the end of 2030, together with the pioneering banking industry, responsible for implementing many activities associated with ESG, contributing to realizing Vietnam's commitment to developing green and sustainable agriculture, developing the carbon market towards reducing greenhouse gas emissions with the goal of achieving net zero emissions by 2050, protecting the environment and natural resources, contributing to development.

Shouldering the heavy historical mission of lending to the most risky sectors, Agribank is also one of the most active banks in supporting social security as well as customers. Affirming the brand "Bank for the community", Agribank always cares about supporting social security with many projects and comprehensive and long-term funding programs across the country.

Every year, with financial resources and support from staff and employees throughout the system, Agribank spends about 500 - 600 billion VND to carry out social security activities, support the construction of schools, medical stations, charity houses, eliminate temporary and dilapidated houses, overcome the consequences of natural disasters, prevent epidemics, protect the environment... In 2024 alone, Agribank will spend nearly 700 billion VND to sponsor social security activities for the community.

Pioneering and setting an example in effectively implementing credit policy programs under the direction of the Government, the State Bank and solutions on interest rates, debt restructuring, and removing difficulties for businesses and people, Agribank also does not neglect the task of tightening credit quality.

As of December 31, 2024, the on-balance sheet bad debt ratio according to Circular 31 of Agribank was 1.55%, down 0.17% compared to the beginning of the year, lower than the plan assigned by the State Bank (under 2%). Notably, in the context of many banks reducing the bad debt coverage ratio, Agribank increased by 1.2% compared to the beginning of the year at 131.1%, creating a thicker buffer to help the bank proactively respond when risks arise.

The achievements over the past 37 years are a solid foundation for Agribank to enter a new era. The strong digital transformation according to Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science, technology, innovation and digital transformation is helping Agribank stand before the opportunity to accelerate.

One of the strategic orientations that Agribank has set for 2025, with a vision to 2030, is to build Agribank into a modern and integrated bank, aiming towards digital banking, modern retail banking, governance and operations in line with international practices. Currently, Agribank is also racing to improve the quality of its products and services, diversify its e-banking products and services, and meet the increasing demands of its customers.

*Agribank and the banking industry are pioneers in digital transformation.*

Aiming at the goal of Digital Banking, modern retail banking, Agribank is currently maintaining the provision of more than 200 convenient and modern products and services for all customer segments; developing diverse capital channels to "Tam Nong" areas, remote areas, islands, serving the payment needs of more than 23 million customers opening accounts and about 3 million customers borrowing capital...

Promoting the application of science and technology and innovation, Agribank has developed diverse capital channels, e-banking services, and digital banking to meet the needs of people and businesses, contributing significantly to pushing back black credit, promoting non-cash payments, and implementing the National Financial Inclusion Strategy.

Pioneering in the digital transformation of the banking industry, Agribank also strongly deployed solutions to enhance security and safety in digital space, collect and clean customer data according to the direction of the Government and the State Bank with the largest number of customers and online transactions in the system.

In recent times, with positive changes, Agribank has achieved many remarkable achievements and results in the field of digital transformation and innovation.

In order to improve and enhance the quality of customer service, Agribank has promoted the application of new technological solutions such as artificial intelligence (AI), cloud computing, Open API... and has deployed many new technological initiatives and solutions such as: Open SmartBank system, Payment Hub, Open API, Omni-Channel - Agribank Plus; deploying connection to the National Population Database, authenticating transactions using biometrics; deploying electronic authentication service via VNeID on Agribank Plus...

With friendly transactions and many integrated utilities, Agribank digital banking not only meets customers' transaction needs anytime, anywhere but also enhances customer experience. Agribank's digital banking application has also received many prestigious awards such as: TOP 10 Strong Vietnamese Brands, Vietnam Digital Transformation Award 2024...

To date, Agribank has had 12 consecutive IT applications/systems honored at the Sao Khue Awards for outstanding IT systems in the fields of finance - banking and digital banking. This is a clear demonstration of Agribank's strong development and constant innovation in applying modern science and technology to banking operations.

Mr. Pham Toan Vuong, Member of the Board of Directors and General Director, affirmed that as a large financial institution, innovation and digital transformation are no longer options but mandatory tasks for Agribank to break through and develop.

“Agribank is determined to focus all its efforts on digital transformation; determining that this is a vital task of the entire Agribank system, not the task of any single unit,” affirmed the General Director of Agribank.

With investment and strong steps in digital transformation, Agribank is continuing to maintain its leading position, better serving the mission of agriculture and rural development as well as injecting capital into the economy.

It can be said that digital transformation and becoming a modern bank are the keys for Agribank to expand its service network, improve product quality, serve customers more effectively, while reducing costs, improving business efficiency, and being ready to accelerate in the new era.

In recognition of Agribank's important contributions to the development of "Tam Nong" and the country's construction, the Party, State, Government and the Banking sector have awarded Agribank many noble awards: Hero of Labor in the renovation period (2003); Second-class Independence Medal (2008), First-class Labor Medal (2018, 2023)...
Agribank is also honored to be ranked at the top of the domestic commercial banking system, TOP 50 largest enterprises in Southeast Asia according to Fortune's rankings; 8 consecutive years in the Top 10 largest enterprises in Vietnam...
Agribank continues to be rated Ba2 by Moody's, Stable outlook and BB+ by Fitch Ratings, Stable outlook, equivalent to the national credit rating and the highest rating for Vietnamese banks.