Agribank pioneers investment in clean agriculture and high-tech agriculture

Prioritising capital for clean and high-tech agriculture development

As a key player in agricultural, farmer, and rural development, Agribank annually allocates 60–70% of its total outstanding loans to this sector, accounting for over 50% of the current credit market share for the “Three Rural Issues.” Agribank also effectively implements many policy credit programs and national target programs for new rural development and sustainable poverty reduction, enabling customers to access preferential capital for agriculture and confidently conduct production and business.

Agribank strives to improve processes, apply technology, shorten project appraisal and loan approval times, and reduce costs to expand credit investment, helping customers access loans quickly. In addition, Agribank closely coordinates with local authorities and ministries to implement high-tech agricultural development projects and resolve customer difficulties. Agribank is actively implementing green banking policies, committing to ESG standards, and integrating them into its business strategy to help green banking operations, protect the environment, and support the community.

Agribank proactively invests in developing clean agriculture and high-tech agriculture.

Proactive and active investment in clean and high-tech agriculture

Agribank is a pioneer bank, allocating VND 50,000 billion to implement a loan program encouraging the development of high-tech and clean agriculture. Accordingly, interest rates are reduced by 0.5–1.5% annually for customers participating in clean agricultural production chains. Customers borrowing under Agribank’s high-tech and clean agriculture development program also benefit from waived or reduced service fees. Since the program’s launch, Agribank’s loan sales have exceeded VND 25,000 billion.

Agribank actively participates in programs and projects such as: the project for sustainable development of one million hectares of high-quality, low-emission rice linked to green growth in the Mekong Delta by 2030; projects to improve the quality and safety of agricultural products and develop biogas programs; coastal resource projects for sustainable development; disaster risk management; low-carbon agriculture support; clean water supply and rural sanitation in the Red River Delta; wind power; and providing credit for drought and salinity prevention in the Mekong Delta.

A melon farm using the high-tech agricultural model in Ninh Son - Ninh Thuan.

Many clean and high-tech agricultural areas have been developed with Agribank’s capital

Thanks to Agribank’s funding, many businesses and households have developed economies and prospered in their hometowns, with clean and high-tech agricultural areas established nationwide.

For example, Mr. Dinh Cong Vang’s family in Ninh Thuan, after about 10 years of selling melons, was able to develop a high-tech melon cultivation model thanks to Agribank loans, resulting in more stable income. Over seven sao (about 2,500 m²) of high-tech melons were cultivated with an initial investment of VND 450 million per sao. The VND 1.7 billion loan from Agribank was used for infrastructure and applying new techniques, significantly increasing productivity and product quality.

The family’s melon farm reduced labour, increased productivity, and saved costs by automating irrigation and fertilisation. Mr. Vang shared that Agribank provided low-interest loans and always created favourable conditions for his family to borrow the maximum amount for production investment.

Visiting Huy-Toan Farm (Huy Toan Co., Ltd., Dien Bien Province), a family business in livestock and crop farming on over 13 hectares, employing more than 20 regular and 20 seasonal workers, shows the bank’s support for local and family economic development. Huy Toan has had credit relations with Agribank since 2009, starting with a VND 2 billion loan, expanding to VND 9 billion by 2024. After 15 years, the company has grown into one of the province’s leading modern farms, valued at about VND 60 billion.

At the livestock area, nearly 17,000 chickens are raised for meat and eggs; bolero music plays gently in the green, cool space thanks to modern cooling and deodorising systems. Ms. Toan, the farm owner, said the farm is their life’s work, so the couple always seeks ways to apply technology for higher productivity and reduced losses. In addition to successful livestock farming, the couple has excelled in high-tech crop cultivation, especially green-skinned pomelo from Ben Tre, which yields outstanding productivity and quality.

Agribank’s efforts in developing clean and high-tech agriculture have materialised in clean and high-tech agricultural models from North to South, bringing stable economic development to many households and businesses.

Green-skinned grapefruit of Huy Toan Company Limited, Dien Bien has outstanding productivity and quality and is available in most northern provinces.

Some clean and high-tech agricultural production areas funded by Agribank include: fruit and vegetable processing plants for export in An Giang and Vinh Long (over VND 4,100 billion in loans); shrimp and dairy cow farming projects in Ninh Thuan (over VND 3,700 billion); rice processing and trading in Dong Thap (nearly VND 2,300 billion); clean animal feed production in Ha Nam (nearly VND 5,000 billion); and seafood processing in Hai Phong and Kien Giang (over VND 3,500 billion).

Many clean and high-tech agricultural production models funded by Agribank have proven effective, such as: vegetable, flower, and fruit growing (Lam Dong), fruit and vegetable processing (Ninh Binh), large-scale rice fields (Can Tho), livestock farming (Bac Ninh, Lao Cai, Ha Nam, Dong Nai), orchid growing and dairy farming (Cu Chi), animal feed and egg-laying chicken farming (Binh Phuoc, Thanh Hoa), passion fruit and safe fruits and vegetables in the Central Highlands (Dak Nong, Kon Tum), and VietGap-standard dragon fruit (Binh Thuan).

High-tech agriculture requires a significant investment in infrastructure, seed production, equipment import, workforce training, and product consumption. Therefore, Agribank’s capital support is essential in restructuring agriculture, bringing significant benefits to farmers.

Applying science and technology in production helps transform agricultural production structures, leveraging the strengths of each locality and region, meeting domestic and international market demand, and adapting to climate change. Thus, investing in high-tech agriculture as directed by the government and the banking sector is a key goal in Agribank’s business strategy, which aims for sustainable development.

Agribank has been honoured as "Outstanding Bank for Supporting High-Tech Agricultural Investment" for many consecutive years.

Affirming its pioneering role and responsibility in the country’s socio-economic development and accompanying the Government and banking sector in implementing the National Green Growth Strategy, Agribank identifies promoting green credit, implementing ESG, and aiming for sustainable development as essential goals in its business strategy. As a leading provider of capital and financial services for agriculture, farmers, and rural areas, Agribank is determined to implement the Government’s and State Bank’s directives on promoting green growth, managing environmental and social risks in lending, and building a safe and sustainable agriculture sector.

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