Agribank accompanies the private economy - Last article: Pioneer in the ESG field

In addition to capital and digitalization solutions, Agribank is also a pioneer in implementing and supporting businesses to operate according to environmental, social and governance (ESG) standards; these are key indicators that reflect the adaptability and long-term development of businesses in the context of the world placing increasing demands on transparency, responsibility and sustainable development.

Quick adaptation

In recent times, Agribank has continuously increased the proportion of green credit in its total outstanding loans, showing that this bank has adapted very quickly to the world's trend of green, clean, and safe production and business. The evidence is that Agribank always prioritizes investment in renewable energy projects, clean production, organic agriculture, and circular economic models. In addition to providing capital, Agribank also organizes programs to guide businesses in applying basic ESG to access credit, helping businesses enhance their reputation and brand value.

At Agribank, of the 42,485 customers with outstanding loans for the green sector, up to 96% of customers (equivalent to 40,736 customers) are in the sustainable forestry sector. The value of the sustainable forestry sector reached VND 6,805 billion, accounting for 24.5% of the total outstanding green credit and ranked second in terms of proportion. Outstanding loans in the renewable energy and clean energy sector ranked first with a loan value of VND 15,330 billion, accounting for 55% of the total outstanding green credit. Third was the green agriculture sector with outstanding loans of VND 5,540 billion, accounting for 20% of the total outstanding green credit.

At Agribank, green agriculture accounts for 20% of total green credit outstanding. Photo: Duc Kien

Up to now, Agribank's total green credit balance has reached VND28,774 billion. Of which, renewable energy accounts for more than 53%, sustainable forestry nearly 24%, and the rest is green agriculture. With the activities that have been and are being implemented, Agribank's outstanding loans for green sectors have grown steadily over the years.

In addition to prioritizing investment in green projects, Agribank continues to maintain close relationships with localities and industries in connecting business associations, cooperatives, cooperative groups, and industry associations to grasp actual needs. Typically, in Ho Chi Minh City, Agribank participated in the Dialogue Conference, connecting Banks - businesses, cooperatives, and agricultural production and business households in 2024, signing support contracts for 12 customers with a total outstanding loan of more than 70 billion VND.

Or in An Giang, Agribank also organized a conference connecting banks and businesses with the participation of over 40 businesses and leaders of departments, branches, and associations; close coordination with departments, branches, and People's Committees at all levels has helped Agribank effectively implement policy credit programs, support startups as well as resolve difficulties, creating favorable conditions for businesses and business households to develop; thanks to this multi-dimensional connection, Agribank's support policies have truly entered life, bringing practical results.

Towards a strong private sector

Agribank's strategies and actions have brought about impressive results, affirming the bank's pioneering role in realizing Resolution 68-NQ/TW of the Party Central Committee on private economic development.

Looking back at the 2024 operating results with total assets reaching 2.2 million billion VND, an increase of nearly 10%; capital reaching over 2 million billion VND, an increase of 7.6%; outstanding loans to the economy reaching over 1.7 million billion VND, an increase of 11% over the previous year; the proportion of outstanding credit in the agricultural and rural sectors still maintained at over 65%... shows Agribank's determination in serving the "Tam Nong" sector to support businesses and family businesses.

In particular, Agribank's credit growth in 2024 is higher than the target set at the beginning of the year and much higher than the growth rate in 2023, affirming the effectiveness of preferential credit programs, including 17 preferential credit programs with a total scale of VND 457,000 billion for customers. The level of financial access in rural and mountainous areas has been significantly improved.

Not only numbers, Agribank's success is also clearly demonstrated through stories and examples of startups that have risen from the capital and support of the bank; the story of Loan Hoan Cooperative for Aquaculture, Purchasing, Import and Export of Seafood (Mai Phu Commune, Ha Tinh) is an example; thanks to loans from Agribank, Loan Hoan Cooperative has had more opportunities to expand its production scale. Originally a small cooperative, facing many difficulties, but thanks to Agribank's flexible credit package for investment and expansion of production scale, the cooperative has transformed itself into a high-tech agricultural model.

Currently, Loan Hoan's products are not only supplied to the domestic market but also exported, bringing in large revenue each year. Or the story of the business household Le Van De in Long An, who invested about 600 million VND in a high-tech hydroponic vegetable growing model, of which 300 million VND was borrowed from Agribank; Mr. De shared, "Agribank's loan procedures are very quick and easy, taking only 1-2 days from completing the application to disbursement, so it is very convenient for us...".

Stories like the above not only show the effectiveness of Agribank's policies and products but also serve as a great source of inspiration, motivating many other businesses and business households to boldly invest, innovate and develop; realizing Resolution 68-NQ/TW is not only a task but also a responsibility of Agribank, a state-owned commercial bank with the mission of serving "Tam Nong" and the economy.

Source: https://daibieunhandan.vn/agribank-dong-hanh-cung-kinh-te-tu-nhan-bai-cuoi-tien-phong-trong-linh-vuc-esg-10383341.html