Right at the beginning of the second quarter of 2024, Agribank added VND 35,000 billion in preferential credit capital for individual and business customers. Funding for many on-going preferential credit programs has been doubled after the initial budget was fully disbursed and new preferential credit programs continue to be implemented according to actual market demand.

From February 1, 2024 to December 31, 2024, Agribank offers a short-term preferential credit program for small and medium-sized enterprises (SMEs) with interest rates lower than the normal lending interest rate floor up to 1.5% p.a. The program aims to support SMEs to supplement working capital for production and business activities, with priority given to businesses operating in the fields of production, processing, trading in agriculture, forestry, fisheries, salt production, clean agriculture, high-tech agriculture and enterprises that are level 1 agents and distributors of FDI enterprises or manufacturing enterprises in the Top 50 largest enterprise in Vietnam.

Understanding the capital needs of small and medium-sized enterprise customers, Agribank has doubled the scale of the preferential credit program to VND 20,000 billion, wishing to accompany SMEs in accessing capital at reasonable costs, without causing businesses to encounter limitations and stagnation in production and business due to lack of capital.

Previously, with the forestry and fisheries industry achieving development expectations in 2024 and implementing the Government's policy and the State Bank's direction, Agribank restarted the preferential credit program for the forestry and fisheries sector with a total budget increased from VND 3,000 billion to VND 8,000 billion, applicable until June 30, 2024. The program is for customers with production and business projects/plans in the field of forest products, including forestry and related service activities, purchasing and consuming forest products, processing and preserving forest products; and the fishery sector including exploitation and aquaculture, purchasing and consumption of aquatic products, processing and preservation of aquatic products.

By participating in the program, customers will enjoy a preferential interest rate that is at least 1-2% p.a. lower than the average lending interest rate for the same term, and at the same time receive a maximum reduction of up to 50% of service fees for international payment fees, trade finance and exemption or reduction of some other service fees.

Most recently, with positive signals from import-export activities, on April 22, 2024, Agribank launched a credit program to support import-export businesses with a budget of VND 20,000 billion, applicable to short-term disbursement in VND. The program is implemented until December 31, 2024 or until sufficient funds have been disbursed, the interest rate is up to 2.4% p.a. lower than the lending interest rate floor, along with many incentives on deposit interest rates, service fees and foreign currency exchange rates until June 30, 2025.

Kylie Nguyen