Agribank urged to reform as state lender marks 30th anniversary

10:24 | 28/03/2018 Economy

Prime Minister Nguyen Xuan Phuc has asked the wholly state-owned lender Agribank to convert into a joint stock bank and become one of Asia’s 150 largest banks by 2020, while attending the 30th anniversary of its establishment.

PM Nguyen Xuan Phuc awards the Labour Order to Agribank leaders

The Government leader said that Agribank needs to further push for restructuring in order to attract strategic investors and achieve success in its equitisation plan, at the ceremony on March 26.

As its full name, the Vietnam Bank for Agricultural and Rural Development, suggests, the bank mainly provides loans for farmers, agribusinesses and small enterprises in rural areas, which account for nearly three fourths of its total loans.

PM Phuc said that its charter capital of US$1.3 billion remains relatively low compared with its regional peers and urged the lender to take action to enhance its financial capabilities and adopt international practices in its operations.

He also called on Agribank to simplify its administrative procedures to make its loans more accessible to farmers and enterprises.

According to the lender’s chairman, Trinh Ngoc Khanh, Agribank has played a significant role in lifting Vietnam from being a food importer to one of the world’s largest exporters of agricultural produce over the past 30 years.

Currently Agribank is the sixth largest enterprise and largest bank in Vietnam, and ranks 446th among the world’s largest lenders, with its total assets reaching VND1,100 trillion (US$48.4 billion).

The lender has partnered with nearly 1,000 banks throughout the world and has a customer base of over 11 million.

On the occasion of its 30th founding anniversary, Agribank was awarded with the Labour Order, first class.

Theo NDO