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Agribank in Top 10 biggest Vietnam businesses

Thu, 29 Jan 2015. Last updated Thu, 25 Jun 2015 09:00

In the list of VNR 500, Agribank was honored in top 10 biggest Vietnam businesses. The bank contributes 78.4% of t otal mobilized capital. Along with the bank, there are many state-owned enterprise listed in the Top 10.

In chart of Top 500 largest Vietnam businesses in 2014, VNR 500, Vietnam Bank for Agriculture and Rural Development Vietnam (Agribank) ranks the 5th in the Top 10. In Vietnam banks, Agribank is the only commercial bank listed in the Top 10 of VNR 500 along with PetroVietnam, Samsung Electronis Vietnam Co., LTD, Petrolimex (Vietnam National Petroleum Corporation), Vietnam Electricity, Viettel Mobile Group,  Binh Son Refining and Petrochemical Co. Ltd, Vietnam Posts and Telecommunications Group, Vietnam National Old and Gas Group(PVOIL),and Vietnam National Coal - Mineral Industries Group- (Vinacomin). By December 31st, 2014, the total assets of Agribank reached 762,869 billion dong. Total assets reached 690,191 billion dong, while deposits population growth, accounted for 78.4% of mobilized capital. Total loans reached 605,324 billion dong.


A branch of Agribank


For more than 26 years of development, among banks in Vietnam, Agribank always plays its key role in investment in Vietnam agriculture, rural areas and farmers and Vietnam economy, with loans accounting for 74.3% of total lending loans economy. Except for household and individuals loans, it rose 39,972 billion dong, equal to 13.4% growth rate of loans throughout Vietnam banking industry in 2014. Agribank is still the leading credit institution lending new rural construction with sales of construction loan to over 201,000 billion dong, more than 2 million households  nationwide borrowing from Agribank. Currently, Agribank is implementing drastic restructuring scheme with the target until the end of 2015. Agribank needs to reach the target in lending sectors of farming, export, processing industry, small and medium businesses with rate of about 80% of outstanding loans and  increase equity.

The key participants of VNR 500 largest Vietnam enterprises in 2014 are still state-owned enterprises with 59.4% of the total turnover of 500 largest enterprises from the state sector. According to the analysts of Vietnam Report, it shows the process of equitization in spite of more concentrated in recent years, but has yet achieved the desired results. At the same time, it means that despite of the ongoing equitization of state enterprises in order to create more space and improve the competitiveness of private enterprises in the country, the state businesses still dominate the economy of Vietnam.


Top Vietnam enterprises contribute higest tax


Some private companies in Vietnam  now entered the VNR 500 chart 2014, accounting for about 44%, but total sales is at the lowest level of 18.6% in the total revenue of the whole chart, down 0.8% compared with the previous year's chart, showing the operation of private enterprise in Vietnam in recent years with signs of going down. In terms of net profit ratio in total assets, the private sector in the country reaches an average ROA of 5.7%. This is the lowest level compared with FDI enterprises (13%) and State ones (6.2%). Results from the latest recent survey of Vietnam Report shows that the capital need of private sector is very high. The lack of working capital has limited these enterprises to fulfill their potential to take away the confidence of businesses which are considered the most dynamic and innovative part in the economy. This is a new challenge for private sector's growth in 2015.

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