AGRIBANK Nghe An: 25 years of innovation, solidarity, construction and development

(Baonghean) - Established on March 26, 1988, up to now, the Bank for Agriculture and Rural Development of Vietnam - Nghe An Branch (Agribank Nghe An) has gone through 25 years of innovation, solidarity, construction and development.

Right from the beginning, Agribank Nghe An had to face numerous difficulties and challenges, shifting from a subsidized mechanism to a market economy; the provincial economy was in the process of transformation, enterprises and cooperatives were producing and trading inefficiently, and had to pay debts to banks, had to dissolve, self-dissolve, or reorganize; Inflation at a galloping rate of 3 digits... Regarding organization, Agribank Nghe An received the current status from the State Bank, poor and outdated facilities, the office was mainly a degraded level 4 house (the whole branch at that time only had 2 computers, 2 printers), small business scale: Capital source 37.8 billion VND, of which capital mobilized locally was only 13.3 billion VND, the remaining loan from the State Bank was 24.5 billion VND, accounting for 64.9%, outstanding loans 35.8 billion VND, of which short-term loans accounted for 94.1%.

The management and operational staff still had many shortcomings, lacking business knowledge according to the new mechanism (the number of staff with university degrees at that time accounted for only 12.4%), the staff's transaction style had many limitations... To develop, the branch had comprehensively innovated all aspects of its operations, the first breakthrough of which was of great significance: innovating the organization of staff, rearranging the organizational apparatus, arranging labor reasonably, retraining staff, actively expanding the network... Up to now, Agribank Nghe An is the bank with the leading network system in the area with 69 transaction points including: Provincial Headquarters, 21 branches in districts, towns, cities, 47 transaction offices spread throughout the province. With a team of nearly 1,000 officers and employees with basic training, university and post-graduate degrees accounting for 79% (6.37 times higher than in 1988), including 19 masters of economics.

Along with establishing customer and market strategies, expanding the network, implementing the motto "borrowing to lend", capital work is always identified by the branch as an important and top priority task. To increase capital, the branch has diversified the forms of mobilization, especially implementing bonus savings products... operating interest rates in accordance with the regulations of the superior bank and the market mechanism. At the same time, step by step innovating technology, innovating the working style and manners of staff, paying attention to marketing activities, promoting Agribank brand propaganda, marketing, promotion... so that from the past, only mobilizing savings deposits from residents and accepting to open payment deposits for businesses and cooperatives, there are now dozens of capital mobilization products to satisfy the increasingly diverse and rich needs of customer segments. Therefore, although capital mobilization in recent years has had to compete fiercely, market share has been divided due to the rapid increase in the number of commercial banks and credit institutions operating in the same area, and interest rates have fluctuated, the source of locally mobilized capital has continuously grown, each year higher than the previous year, with high speed and scale.



Combine harvester of Mr. Loc's family in block 10, Kim Lien town.

By the end of 2012, the capital managed and mobilized reached 11,752 billion VND, compared to 1988, an increase of 883.8 times, the average annual capital growth was from 28-30%, in 2012 alone it increased by 42.3%, in which the proportion of residential deposits accounted for 80% or more, holding the main market share in the total capital of commercial banks and credit institutions in the area and being the branch with the highest scale of mobilized capital among the branches in the same system in the North Central region. Creating a major turning point was shifting from mainly using capital from the superior bank to proactively using local capital to expand business, at the same time the branch took advantage of exploiting capital from projects... to effectively lend medium and long term.

With the market identified as agriculture and rural areas, the branch has closely followed the Party and State's "contract 10" policy in agriculture, the innovation in Agribank's credit mechanism, strongly transformed the investment structure, closely followed the key economic programs of Nghe An province, diversified investment objects, closed investment from production - processing - product consumption, combined with short-term loans with medium and long-term loans. Actively and flexibly operating credit activities, notably:

- Proactively propose and successfully pilot Agribank credit programs such as: Loans for production households since 1991, loans for labor export, loans for agricultural and forestry households, and Youth Union households doing business... contributing to the practical basis for Agribank to issue credit mechanisms. In 1995, the implementation of preferential credit for poor households lacking capital for production and business achieved good results, which was one of the premises for the establishment of the Bank for the Poor.

- Since 1997, to contribute to the successful implementation of the Government's 1 million ton sugar program, the unit has invested 6.3 million USD (equivalent to 100 billion VND) in a joint venture to build the Tate & Lyle Sugar Factory (Quy Hop). This is the sugar factory with the most modern technology in Southeast Asia, with highly efficient production and business (the factory has now paid off all debts). At the same time, with the investment in building the factory, Agribank Nghe An also focused on investing in lending to farmers to plant and care for nearly 30,000 hectares of specialized sugarcane, providing enough raw materials for the sugar factories: Tate & Lyle, Song Lam, Song Con to operate.

- Invest in a 4-party linkage model (State - Scientists - Farmers - Banks) to provide loans to buy thousands of multi-function plows, harvesters, tea harvesters, etc., bringing mechanization into agriculture, improving labor productivity and bringing practical economic efficiency.

- Lending to build and concretize thousands of kilometers of canals for proactive irrigation, rural roads, electricity systems for daily life, developing industries, hundreds of boats, fishing gear, developing thousands of farms growing fruit trees, industrial crops, sugarcane, pineapple, tea, raising large livestock, poultry, aquaculture, seafood, shrimp farming for export...

- Implementing the province's labor export program, proactively signed responsibility contracts, coordinated with more than 80 enterprises in charge of labor export to lend hundreds of billions of VND, contributing to sending nearly 40,000 workers to work abroad, creating jobs, increasing income and contributing to poverty reduction.

- The method of transferring capital to borrowers is applied flexibly, creatively, and ensures safety: lending directly to households, lending through groups, cooperatives providing services, and lending to three parties between the Bank - Material suppliers - Farmer households. Strengthening the propaganda of bank credit policies serving agricultural and rural development according to Decision 67 and Decree 41/2010/ND-CP of the Prime Minister. In particular, coordinating with the Farmers' Association and Women's Association at all levels to effectively implement joint resolutions 2308, 01 between Agribank Vietnam and the Farmers' Association, Vietnam Women's Association; Resolutions 02, 03 between the State Bank of Vietnam and the Farmers' Association, Vietnam Women's Association. Establishing 2,139 loan groups with 31,082 members borrowing hundreds of billions of VND. At its peak (2005), outstanding loans through groups reached 423.5 billion VND, accounting for 17.1% of total outstanding loans and 19.9% ​​of total outstanding loans of production households.

As a result, by 2012, outstanding loans reached 8,541 billion VND, 237 times higher than in 1988, of which household economy loans accounted for over 75% of total outstanding loans, with an average annual growth rate of 24-26%, and in 2012 alone, an increase of 27.4%. The bad debt ratio is always below the permitted level, and in 2012 alone, the bad debt ratio accounted for only 0.49% of total outstanding loans. Since 2000, in addition to the agricultural and rural markets, the branch has expanded its investment to urban areas, industrial parks, and key areas in the province. It has proactively approached and lent capital to thousands of small and medium-sized enterprises for production and business, and participated in co-financing large projects such as Ban Ve Hydropower Plant, Ban Chat, Vinh bypass, etc. Credit products have been increasingly improved and developed, increasing the branch's competitiveness in the credit market.

The development process of the branch is always closely linked to agriculture, rural areas and farmers of the province. The proportion of agricultural and rural loans accounts for over 75% of total outstanding loans, the proportion of medium and long-term loans accounts for 38%, many branches in mountainous districts and towns prioritize the medium-term loan ratio of over 45-50%. Agribank Nghe An's lending capital has covered all regions in the province. Contributing to the economic restructuring, promoting the development of agricultural and rural economy towards industrialization and modernization, creating jobs and increasing income for workers, the face of the countryside has many improvements...

By the end of 2012, the branch had 1,635 devices including computers, printers and nearly 100 transmission channels... at the same time, it developed modern transaction channels associated with high technology such as transaction channels via automatic transaction machines (ATMs), transaction channels via mobile phones, via the Internet... Successfully implemented the Banking Modernization Project (IPCAS) since 2008. Accordingly, all 69 transaction points of Agribank Nghe An conduct online transactions according to the centralized data model connected to the Agribank headquarters. On the basis of modern technology, Agribank Nghe An provides a variety of 10 groups with over 200 products and services to customers. Continue to develop the scale and number of customers using the service. From domestic payment services, international payment, remittance payment, foreign currency trading, securities, Bancassurance, airline ticket sales agency... to new products and services with high technology integration such as: Card service, Mobile Banking service, Internet Banking, payment connection between banks and customers... The branch currently holds the leading position in the area in terms of the number of cards issued (210,000 cards) and serving salary payment via accounts, the ATM system has been developed to 27 machines, the EDC/POS system has been developed to 33 devices. There are over 53,000 customers using Mobile Banking and Internet Banking services. From 2003 to now, remittance payment service has reached 407.3 million USD, in 2012 alone it reached 94 million USD, in the TOP of units with high number of items and remittance payment turnover in the Agribank system... gradually bringing modern banking services to the countryside.

In business activities, the branch always fulfills its obligations to the State, ensures stable policies, employment, and income for employees, which are increasingly improved. Creates a good and friendly working environment as well as development opportunities for officers, civil servants, and employees.

Along with promoting the expansion of safe and effective business activities, Agribank Nghe An always cares for and does well in social charity work. The unit has contributed tens of billions of VND to social charity funds, built hundreds of houses of gratitude, great solidarity houses, cultural houses, village and hamlet kindergartens, supported people affected by natural disasters, floods, victims of Agent Orange, disabled children, supported 7 Vietnamese Heroic Mothers, supported the Education Promotion Fund to give to poor children with good academic performance, donated hundreds of savings books to policy families and former youth volunteers in difficult circumstances... In 2012 alone, the total amount of money the unit spent on social security work and supporting funds was 3.887 billion VND, of which nearly 1 billion VND was used to support the new rural construction movement (building an auxiliary house for 1 commune health station and 1 village cultural house), supported the poor mountainous commune of Lien Hop, Quy Hop district 205 million VND, medical equipment 160 million VND, 45 houses of gratitude and great solidarity houses. Donated 50 million VND to Nghe An students who passed the university entrance exam with high scores but were in especially difficult circumstances in the 2012 university entrance exam…

Recognizing the achievements of the industry, up to now, 100% of affiliated units have been recognized as Cultural Units at the district level, many units have been recognized as Cultural Units at the provincial and general federation levels. The Party Committee has continuously achieved the title of strong and clean unit, exemplary strong unit for 16 years, and has been awarded a Certificate of Merit by the Nghe An Provincial Party Committee. The mass organizations have operated well and always achieved the title of excellent strong unit.

The unit was awarded the Second and Third Class Labor Medals by the President; the Emulation Flag, Certificate of Merit by the Prime Minister and many certificates of merit and emulation flags from the State Bank of Vietnam, the Provincial People's Committee and central ministries and branches; the Golden Cup "Integration and Development Enterprise" in 2010... In addition, 5 district Bank branches were awarded the Third Class Labor Medal, 12 collectives were awarded Certificates of Merit by the Prime Minister, 7 individuals were awarded the Third Class Labor Medal and 10 individuals were awarded Certificates of Merit by the Prime Minister...

In the coming years, implementing the project of restructuring commercial banks under the direction of the Government and the State Bank of Vietnam, Agribank Nghe An will continue to maintain and promote its role as a leading branch of a state-owned commercial bank, playing a leading and key role in credit investment and banking services in the rural financial market, while focusing on the urban market, always being a companion, loyal and trustworthy of tens of thousands of production and business households and enterprises. Continuing to comprehensively innovate and improve the quality of all aspects of operations to ensure safety and efficiency.

Phan Hoang Vuong (Director of Agribank Nghe An)