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VBARD holds year-end conference
The Vietnam Bank for Agriculture & Rural Development (VBARD) held a conference to review its operations in 2008 and chart out its tasks in 2009 in Ho Chi Minh City on January 10. Governor Nguyen Van Giau of the State Bank of Viet Nam (SBV) attended and spoke at this conference.
Starting his speech, the SBV Governor highly appreciated achievements of VBARD in 2008, especially its contribution to agriculture and rural development. In the context of complex fluctuations in the global economy in 2009, he said, VBARD must forecast and closely watch the market movement in order to work out effective operational plans on the basis of Resolution No.30 of the Government on proactively preventing economic downturn and stabilizing macro-economy. Additionally, he suggested 8 strategic directives to be undertaken by VBARD in 2009 and the years to come as below:
- VBARD should create favorable conditions for enterprises to get access to its loans in line with the applicable laws.
- VBARD should share the burden of economic difficulties with the whole nation by applying the reasonable lending rates to enterprises and individuals while maintaining proper profitability for the bank.
- VBARD should necessarily make loan restructure in line with the existing regulations alongside with effective risk management.
- To implement the demand stimulus package of the Government, VBARD should work closely with the Vietnam Development Bank to help small and medium enterprises (SMEs) to get favorable access to bank loans.
- VBARD should contribute the sustainable development of the banking system by enhancing its internal control and audit. In addition, the bank should carry out an effective plan of non-performing loans management, especially in the context of the economic difficulties.
- In spite of difficulties, VBARD should continue to improve its competitiveness, and put more investment in technology and human resources.
- VBARD should pay more attention to information and communication to heighten its prestige and brand name.
- VBARD should always be prepared to be adaptable to policy changes, since it is very hard to make short-term forecast amidst unforeseeable economic movements.
Several achievements of VBARD in 2008
Despite the complicated development of the global financial turmoil and the downward trend of the domestic economy, VBARD’s operations in 2008 remained stable. Moreover, its business performance further developed in 2008, thus contributing to the success of curtailing inflation in earlier 2008 and proactively preventing the economic downturn in late 2008. By December 31, 2008, the bank’s total assets reached VND 386,868 billion, an increase of 18.3% in comparison with end 2007; the bank’s total capital was VND 363,001 billion, up by 23% in comparison with end 2007; the bank’s loan outstanding was VND 284,617 billion, an increase of 17.5% in comparison with end 2007, of which VND 200,000 billion (around 70%) was invested in agriculture and rural development; its non-performing loans accounted for 2.7%; and the bank’s risk provision recorded an all-time high level of VND 7,410 billion.
In 2009, in face of numerous difficulties of the global economy, VBARD will focus on implementing the Government’s stimulus package, and measures relating to monetary policy. Specifically, VBARD will continue to restructure investment portfolio with priority being given to agriculture and rural development; to strengthen the bank’s competitiveness; to implement several major projects, such as “Solutions on extending and improving the effectiveness of credits to farmers and customers in agriculture and rural areas up to 2010 and the orientation to 2020”, “Developing nontraditional credit products and services”; “Developing VBARD’s brand name”; just to name a few.
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