Financial inclusion is not only about helping people gain access to capital and banking services; it is also about creating momentum for changes in production mindset and the development of new, more efficient and sustainable economic models. Along its journey of supporting agriculture, farmers and rural development, Agribank not only provides financial resources but also helps pave the way for new production models in rural areas.

In Nhu Thanh District, Thanh Hoa Province, the forestry sector is undergoing significant transformation. Instead of short-cycle forest planting, many households have shifted to developing forests under FSC standards – a globally recognized standard for sustainable forest management. Nearly 200 households have joined this model, accepting longer investment cycles and stricter production processes in pursuit of higher economic value and opportunities to access export markets.

Throughout this transition, Agribank’s credit has served as an important source of support, helping local people overcome barriers related to initial investment costs and long capital recovery periods. Loans aligned with forestry production cycles have enabled households to confidently adopt the new model. Initial results show that FSC-certified forests generate at least 1.3 times greater value than traditional forestry practices, while also creating opportunities to participate in legal timber supply chains with traceability and compliance with environmental standards.

Beyond supporting individual households, Agribank has also accompanied rural enterprises in their efforts to expand and develop more systematically. Dai Phat Forestry Company Limited in Thanh Hoa is one such example. Starting with an initial loan of approximately VND 500 million, the company gradually expanded its operations and increased its outstanding loans at Agribank to nearly VND 30 billion. The financing enabled the company to invest in stable raw material areas, machinery, processing technology, quality control systems and value-added production.

As a result, its wood products are now supplied not only to the domestic market but also to export destinations such as Europe and China.

In Luan Thanh Commune, Thanh Hoa Province, the cultivation of high-value medicinal plants has also demonstrated the catalytic role of Agribank’s financing. Instead of relying on acacia trees with relatively modest economic returns, many households have boldly shifted to cultivating higher-value medicinal crops. For the household of Mr. Nguyen Si Huyen, the total investment in forest planting and cat sam cultivation reached approximately VND 1.6 billion, with the majority financed through Agribank loans. After a cultivation cycle of four to five years, expected output is around 12 tonnes, with selling prices ranging from VND 70,000 to VND 80,000 per kilogram and estimated revenue approaching VND 1 billion per harvest.

From FSC-certified forests and wood-processing enterprises to cat sam cultivation models, Agribank’s financing has demonstrated that it does more than address immediate capital needs. It also helps transform the mindset and production practices of rural households and businesses. When capital is directed to the right beneficiaries and aligned with appropriate production plans, it becomes a driving force for the transition from small-scale production to value-chain linkages, from short-term exploitation to long-term investment, and from traditional products to higher value-added models.

As the leading state-owned commercial bank serving the “Tam nông” sector, Agribank continues to reaffirm its commitment to supporting the development of agriculture, farmers and rural areas. This commitment goes beyond providing financial resources; it helps pave the way for new production models and lays the foundation for more inclusive, modern and sustainable rural economic development.

Kylie Nguyen