From loans from Agribank, many individuals and households have effectively developed production and business models, escaped poverty and become rich - Photo: VGP/HT

Private economy - The most important pillar of the economy

The journey of nearly 40 years of renovation has marked a resilient, breakthrough and development-hungry Vietnam. From an inefficient, centrally planned economy with an average income per capita of only 96 USD in 1989, Vietnam has risen strongly, expected to enter the group of upper middle-income countries by the end of 2025, equivalent to over 5,000 USD/person/year.

This success has a very important contribution from the private economic sector. If in the early stages of innovation, the private economic sector only played a secondary role, the economy mainly relied on the state sector and foreign direct investment (FDI), then in the past two decades, the private economic sector has risen strongly, becoming one of the leading important pillars of the economy and increasingly showing itself to be the most important driving force to promote national economic growth.

With nearly one million enterprises and about 5 million individual business households, the private economic sector currently contributes about 51% of GDP, more than 30% of the state budget, creates more than 40 million jobs, accounts for more than 82% of the total labor force in the economy, and contributes nearly 60% of total social investment capital.

The private economy not only helps expand production, trade and services but also makes an important contribution to improving labor productivity, promoting innovation and increasing national competitiveness. The strong rise of many Vietnamese private enterprises not only dominates the domestic market but also affirms their brand in the international market.

Agribank's capital promotes the private economy to play an important role as a pillar of the economy - Photo: VGP/HT

Agribank capital accompanies private economic development

Identifying private economic development as a long-term national strategy and policy, the banking sector has actively and synchronously implemented solutions to promote credit growth to meet the capital needs for production and business of people, businesses in general and private enterprises in particular.

In the development process of the business community, Vietnamese entrepreneurs always have the companionship and support of the commercial banking system. The commercial banking system is the lifeblood of the economy, an effective capital channel serving production and business, contributing to promoting economic restructuring.

During the 37-year development journey, Agribank has been making constant efforts to provide the best utility products and services, the most suitable credit programs for customers, support customers to overcome difficulties, develop production and business with customers, and contribute to the overall achievements of the economy.

Agribank's investment credit capital for the private economic sector has always been given attention, with the investment credit ratio accounting for about 80% of total outstanding loans, equivalent to nearly 1.4 million billion VND. Of which, enterprises in the private economic sector with a scale of over 400 thousand billion VND account for about 90% of outstanding loans for corporate customers and have increased by more than 25% over the past 5 years.

Agribank always affirms its role as the leading State-owned commercial bank in the credit institution system in Vietnam, steadfast in its main mission of investing in the development of agricultural economy, farmers and rural areas, contributing to stabilizing the macro economy, controlling inflation and promoting the country's economic growth.

Agribank's capital through preferential credit programs with suitable interest rates has helped businesses, entrepreneurs, production households... develop sustainable production and business, reaching out to the world from raw materials, special agricultural products, with national brands. Agribank proactively and actively implements 07 policy credit programs, national target programs on new rural construction, sustainable poverty reduction, socio-economic development in ethnic minority and mountainous areas.

Agribank has proactively and flexibly provided credit capital to the economy and served production and business activities, focusing on the three main growth drivers: consumption, export, investment and prioritizing five key areas including export, agriculture, high technology, small and medium enterprises, and supporting industries. In 2024, Agribank proactively reduced lending interest rates 4 times, bringing the average lending interest rate at the end of the year down nearly 2% compared to the beginning of the year and among the lowest in the market.

To further support the business community and the private economic sector, in the first months of 2025, Agribank continued to reduce the short-term lending interest rate floor by 0.2% - 0.5% to promote credit growth, while implementing 09 credit programs with a scale of over 350 trillion VND with lending interest rates 1% - 3% lower than normal interest rates, ensuring full provision of credit products to all customers. In particular, for enterprises in the private economic sector alone, Agribank has allocated a capital source of 240,000 billion VND, applicable to many customer groups such as: large enterprises, small and medium enterprises, FDI customers, import-export customers, etc.

Identifying the particularly important role of customers and partners, in its operational orientation, Agribank focuses on strengthening cooperation with businesses in many fields, maximizing potential and strengths for mutual development.

Agribank has continuously diversified credit products for each target group and customer segment (small and medium enterprises, large enterprises, corporations, general companies, etc.) as well as industries and sectors, especially economic development drivers; promoted digitalization, applied information technology to improve procedures to increase access to banking products and services via electronic means, contributing to shortening the time for processing documents and increasing access to banking products for customers. Along with that, Agribank reduced operating costs to reserve resources to reduce lending interest rates, regularly organized customer-bank connection conferences to grasp the needs and promptly remove obstacles to increase customers' access to credit capital.

The close and faithful companionship between Agribank and the business community and entrepreneurs in recent times has contributed to realizing the policy of developing the private economy, supporting the business community and entrepreneurs to develop and become the driving force for national development, together building a healthy ecosystem, where all economic components are equal, connected, supported and create prosperity and development, together with the country entering a new era - the era of breakthrough development and prosperity.

Mr. Minh

Source: https://baochinhphu.vn/agribank-gop-phan-thuc-day-kinh-te-tu-nhan-102250426194159734.htm