Vietnam Bank for Agriculture and Rural Development (Agribank) is the only 100% state-owned commercial bank in Vietnam. Throughout its development, Agribank has always been the largest bank in Vietnam in terms of total assets, operating network and customer base. The bank’s market share includes 16% of the total funding sources and outstanding loans that make up Vietnam’s banking system as a whole.
As of 31 December 2016, Agribank possessed total assets of over VND 1 million billion, a broad operating network of 2,300 branches and transaction offices across the country (covering 63 provinces and cities) and nearly 40,000 staff.
Agribank has played a very important role in the development of the country’s economy in general and particularly in the agricultural sector and rural areas of Vietnam – a country in which 70% of the workforce is employed in the agricultural sector and 80% of the population lives in rural areas. The agricultural sector contributes to about 22% of the country’s GDP and makes up 30% of its export turnover. Over almost 30 years of development, Agribank has been consistently pursuing its investment focus and upholding its key and leading position as a financial institution providing credit and financial services primarily to Vietnam’s agricultural and rural areas. Agribank outstanding loans for agricultural and rural areas account for 70% of its total outstanding loans and 51% of total outstanding loans of the banking sector for these areas.
Agribank opens branch in the Kingdom of Cambodia
On 28 June, 2010, in the capital cityof Phnompenh, Kingdom of Cambodia, the Vietnam Bank forAgriculture and Rural Development (Agribank) held a solemn Opening Ceremony toopen its branch in the Kingdom of Cambodia.
Established in 1988, after 22 years of operation, Agribank is now the biggestfinancial institution in Vietnam with total assets of almost US$ 26 billion;total funding resources of US$ 23.6 billion; total outstanding loans to theeconomy of US$ 19 billion; employees of 40,000 people; an extensive network ofmore than 2,300 branches and transaction offices connected online; incorrespondent relationship with more than 1,000 foreign banks in 96 countriesand territories. Agribank is trusted by over 10 million individual customers,30 thousands enterprises, and thousands of domestic and foreign partners.
The introduction and operation ofAgribank branch in Cambodia is an illustration of Agribank strictimplementation of policies set by the Government of Vietnam, that is to focuson promoting comprehensive bilateral cooperation between the two countries,including finance – banking sector, at the same time, commit to bringing modernbanking services to theCambodian market of 14 million people.
Aware of the role andresponsibilities of a leading enterprise in promoting trade relationsbetween the two countries and having identified Cambodia as a potential market,since 2005, Agribank opened its Representative Office in the capital city ofPhnompenh, consequently has signed many cooperation agreements with Cambodianpartners. Agribank was the first Vietnamese bank to successfully deploy CrossBorder Payment with Cambodia, facilitating crossing border import-exportpayment.
An international partner
Agribank’s investment in the agricultural and rural sector has contributed to positive change in the country’s economic structure, job creation, infrastructural development, customers’ income increases and social-economic stabilisation in rural areas. With its experience and prestige in the rural credit field, Agribank is always the first partner in Vietnam entrusted by international donors including the World Bank (WB), the Asian Development Bank (ADB) the the European Investment Bank (EIB, in implementing their credit projects within the country.
Agribank is also a partner and constructive member of many international associations, which include the World Savings and Retail Banking Institute (WSBI), Asia-Pacific Rural and Agricultural Credit Association (APRACA) and the International Agricultural Credit Confederation (CICA).
Developing and applying technology in banking operation has also been Agribank’s focus. The bank was the first in Vietnam to complete its core banking project financed by the World Bank, which modernized the customer accounting and payment system (IPCAS). Relying on a well-invested technology base, Agribank has achieved substantial progress in governance, management and in the development of advanced banking products, services and utilities.
Agribank’s strategy for the coming years will see the bank continue to enhance its key role in the monetary and credit market for agriculture and rural areas: providing diversified products and services that are tailored to the features of each region or area, while maintaining its position as the largest commercial bank and financial institution in Vietnam, committed to contributing to the country’s achievements in industrialisation, modernisation and development.