Agribank promotes growth from the beginning of the year

Expand investment

By the end of 2024, Agribank will have fully completed and exceeded the business targets assigned by the State Bank, the year with the highest results after 4 years of implementing the Restructuring Plan for the period 2021 - 2025. Specifically, total assets reached over 2.2 million billion VND (up nearly 10%); capital mobilization exceeded 2 million billion VND (up 7.6%); credit reached 1.72 million billion VND (up 170 thousand billion VND, equivalent to 11%); State budget contribution for the period 2021 - 2024 reached over 47 thousand billion VND. Agribank has been granted an additional charter capital of 17,100 billion VND by the National Assembly and the Government, contributing to improving financial capacity.

In early 2025, Agribank will implement 9 credit programs with a scale of over 350 trillion VND to support production and business. Photo: Agribank

According to Agribank General Director Pham Toan Vuong, 2025 will be a year full of fluctuations with changes in policies and trade relations of major countries in the world, directly affecting the management of monetary policy; in which, exchange rate and interest rate factors will have a great impact on banking activities.

Following the direction of the Government and the State Bank, contributing to ensuring economic growth of 8% or more in 2025, Agribank has promptly deployed and developed a business plan for 2025, continuing to provide a full range of credit products to all customers with the target of increasing outstanding debt in 2025 by about VND 200,000 billion (equivalent to a growth rate of 13%).

Mr. Pham Toan Vuong said that in addition to the traditional target of agriculture, rural areas, and farmers, Agribank will focus on investing in key projects to invest in developing infrastructure for airports, seaports, roads, railways, etc., and renewable energy projects. Credit will focus on priority areas, growth drivers of the economy, social housing credit programs according to Resolution 33 of the Government, lending to the forestry and fishery sector, the Project on sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030, etc.

At the beginning of 2025, Agribank implemented 9 credit programs with a scale of over 350 trillion VND to support production and business.

Along with that, Agribank will continue to maintain a stable and reasonable interest rate level, creating favorable conditions to support customers to restore and develop production and business activities; at the same time, proactively reduce operating costs to create a basis to reduce lending interest rates, creating momentum for economic growth. At the beginning of 2025, Agribank has implemented 9 credit programs with a scale of over 350 trillion VND with lending interest rates 1-2% lower than normal interest rates to effectively promote credit growth.

Need additional capital...

With the banking sector's credit growth target of about 16% in 2025, the State Bank of Vietnam has assigned Agribank a credit growth target of nearly 13%, equivalent to an increase of over VND200,000 billion. Thus, if Agribank's annual outstanding debt increases by VND200,000 billion, Agribank needs to add VND15,000 - 17,000 billion in equity capital.

At the beginning of 2025, Agribank implemented 9 credit programs with a scale of over 350 trillion VND to support production and business.

Therefore, General Director Pham Toan Vuong proposed that the National Assembly and the Government consider having a separate mechanism for state-owned commercial banks; in which, consider providing additional charter capital from Agribank's annual actual profits, at least 10,000 billion VND/year, starting from 2025, so that Agribank can complete its assigned political tasks, focusing on credit growth for the agricultural and rural sectors, key projects, social housing projects, houses for low-income people...

Regarding legal and institutional problems, Agribank recommends that the Government should soon issue a Decree amending and supplementing Decree No. 126/2017/ND-CP and Decree No. 140/2020/ND-CP related to the conditions for equitization in accordance with the 2024 Land Law and Decree No. 03/2025/ND-CP (effective from January 1, 2025) to remove difficulties for Agribank, so that it can soon equitize. In addition, although Agribank has drastically implemented solutions to handle and recover bad debts, bad debts still tend to increase in the context of general difficulties of the whole industry, especially due to the impact of Typhoon Yagi, causing great damage to people and property.

In the context of only 1 year left to implement the Agribank restructuring plan, the implementation of the goal of reducing the ratio of bad debt and potential debt to bad debt to below 3% still faces many challenges; the handling of collateral assets and bad debt recovery of the banking industry as well as Agribank have not yet been fully legalized; Agribank recommends that the Government, the National Assembly and competent authorities have appropriate mechanisms and regulations on handling bad debt and collateral assets of bad debt, supporting credit institutions with a legal basis to thoroughly handle bad debt...

At the beginning of 2025, Agribank implemented 9 credit programs with a scale of over 350 trillion VND to support production and business.

Particularly for the Project on Developing 1 million hectares of high-quality, low-emission rice in the Mekong Delta by 2030 according to the policy of the Government and the State Bank, Agribank is ready to provide credit capital and financial services to meet the needs of people and businesses.

At the same time, Agribank hopes that the Ministry of Agriculture and Rural Development, People's Committees of provinces and cities, and local departments, branches and sectors will prioritize, support and advocate Agribank as the bank serving the Project's capital sources, including capital from the state budget and foreign loans; as well as prioritize and support Agribank branches in the area to implement and access capital sources such as financial management costs and payment sources for units participating in the Project.

On the other hand, support Agribank in introducing key enterprises to join the Project; add specialized rice growing areas and zones according to the Project to the list of high-tech agricultural areas to enjoy preferential credit policies specifically to encourage high-tech agricultural production...

Source: https://daibieunhandan.vn/agribank-thuc-day-tang-truong-tu-dau-nam-post404829.html