Agribank Son La: Active in the Fight against Poverty

Being the leading credit institution in Son La province with the major market share in terms of capital mobilization, loans and debit, and a wide network of 21 transaction offices, especially the largest scope of loans for agriculture-rural sector and farmers, the Bank for Agriculture and Rural Development Son La branch (Agribank Son La) has made real contributions to local socio-economic development. Regarding this topic, Vietnam Business Forum has had an interview with Mr Pham Van Hoa, Director of Agribank. Tran Tung reports.

 

By the end of December 31, 2012, Agribank Son La has mobilized VND 3,300 billion, up by 39 percent against 2011, accounting for 55 percent in total mobilized capital of local credit institutions.

 

In the past year, total gross loan of Agribank Son La occupied over 50% of that of local credit institutions with VND 5,487 billion, up by VND 670 billion against 2011, given the growth rate of 13 percent.

 

The demand for loans for economic development in the sectors of agriculture-rural area and hydropower in Son La province is very large. Thus, Agribank Son La has gathered loans in this sector, given loans in compliance with Decree 41/CP, loans for individuals/households, small and medium enterprises in the province. In term of loans, we account for the largest market share (network, gross loan, number of customers); and notably are the key institution in agriculture-rural area sector. Particularly, the value of loans for agriculture and rural area was VND 5,092, equating 92.8% of total loan; there were 10,974 customers having loans to be due by the end of December 31, 2012. Meanwhile, the loans for individuals/households were valued VND 2,847 billion, increasing by 471 billion against 2011. In addition, loans for enterprises were VND 2,640 billion, up by VND 199 billion, gaining the growth rate of 3 percent.

We have prioritized fund for local enterprises’ production and business. The gross loan value for businesses has increased year by year. Notably, for those buying agricultural products, we have annually reserved VND 400-600 billion for loans for collection, processing and consumption of agro-forestry products.

 

We have also marked and ranked customers under international standards for the application of customer policies such as if the customer is ranked at level AAA, AA, A, it will receive loans without partial mortgage or reduced interest rate etc.

 

The interest rate for small and medium enterprises does not exceed the ceiling rate as guided by Governor of State Bank (currently at 12%/year for short-term loans). In 2012, Agribank Son La reduced the interest rate for previous loans, aiming at partially handling difficulties for businesses (CV 198/TB-NHNN. It was estimated that we suffered loss of VND 60 billion in our turnover.

 

Our orientation to 2020 is focus, promote and maintain the position as the provincial leading commercial bank; the core in local economic development, especially in the market of agriculture, farmers and rural area.

 

Concerning payment system, Agribank has modernized and synchronize the whole system since 2008. It is strong enough to serve business activities in the coming 20-30 years.

 

The offices of branches are all spacious and well equipped with modern devices. In addition, most of the management staffs have been sent to classes on business administration in the model in developed countries.

 

Specially, the brand and corporate culture of Agribank will be promoted; gradually making Agribank “the number 1 choice” of customers who are business households, small and medium enterprises, farms, cooperation in Son La province.