Bac A Bank Actively Connects Customers to Sources of Funding for the Development of Rural Agriculture

DNHN - Bac A Commercial Joint Bank (BAC A BANK) is one of the units actively involved in investment consulting and capital arrangement so that enterprises in this field can easily receive “support” from flexible financial sources, optimising benefits.

Accessing sustainable capital sources is one of the key points helping enterprises successfully implement long-term agricultural projects, contributing to economic growth and improving life in rural areas.

BAC A BANK was established in 1994 as one of the pioneering banks to provide investment consulting for projects in the field of high-tech agriculture. Over 30 years of establishment and development, BAC A BANK has always strived to build products/programmes as well as seek access to loan sources to serve the production and business activities of individual customers/enterprises, cooperatives, etc. in rural economic zones. Accordingly, Bac A Bank has signed a Re-lending Contract with the Bank for Investment and Development of Vietnam - BIDV (Lead Bank) for the capital source from the “Rural Finance II Project” (RDFII) sponsored by the World Bank. BAC A BANK has become a member bank to re-lend to end-borrowers, individuals, cooperatives, and small and medium-sized enterprises, as defined in Decree No. 80/2021/ND-CP of the Government.

After a period of implementing RDFII, Bac A Bank has received many positive feedbacks. As of December 31, 2023, BAC A BANK has successfully deployed preferential capital to a large number of customers at most business units throughout the system: the average outstanding loan growth was 1.5 times higher than that at the beginning of the period, showing positive results in exploiting, managing and effectively using the capital source from the Project.

The funding programme under the “Rural Finance II Project” creates maximum conditions for sub-projects on rural agricultural development with a maximum loan amount of 75% of the total project cost and a loan limit of up to VND 2.4 billion for each sub-project. The interest rate is only from 8.8 %/year, along with a flexible policy on secured assets; enterprises/individuals participating in borrowing capital will have many advantages in balancing finance and cash flow. By providing funding for medium- and long-term investment sub-projects that are assessed as feasible nationwide (except for the inner-city areas of Hanoi, Ho Chi Minh City, Hai Phong City and Da Nang City), it once again affirms BAC A BANK’s continuous efforts to optimise customer benefits.

Through the “Rural Finance II Project”, BAC A BANK provides capital sources to meet various purposes, including investment costs for means of transport serving production and business activities in rural areas; costs for machinery, equipment, raw materials, input products and service providers… production, investment or service activities related to the rural economy. According to many customers who have successfully borrowed capital, this preferential capital source plays an important role in developing production and improving material and spiritual life, creating jobs for labourers in rural areas.

In addition to becoming a capital source to support production promotion, the implementation of the Rural Finance II project also helps people understand and raise awareness of environmental protection when engaging in production and business activities. This contributes to creating sustainable values in each locality - one of the business goals that BAC A BANK has always aimed for since its establishment.

BAC A BANK expects that the capital source from the “Rural Finance II Project” will continue to support enterprises to take the initiative in business capital, while bringing about positive changes to the face of rural Vietnam in line with the Government’s policy - so that the rural economy can restructure towards increasing added value, integrating multiple values, and developing rural industry and services. BAC A BANK’s staff is always ready to provide advice and support procedures and dossiers so that customers can meet the conditions of the Programme, accessing this capital source quickly and effectively in the context of capital mobilisation and facing many challenges.

HT