Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II

Date Received: Jun 11, 2020

Date Published: Mar 05, 2021

DOI: https://doi.org/10.31817/vjas.2020.3.3.02

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Issue: Vol. 3 No. 3 (2020): Vietnam Journal of Agricultural Sciences

Section:

ECONOMICS, SOCIETY AND RURAL DEVELOPMENT

How to Cite:

Giam, D., Anh, D., Huyen, V., Thao, L., Bao, D., & Do, T. M. V. (2021). Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II. Vietnam Journal of Agricultural Sciences, 3(3), 679–688. https://doi.org/10.31817/vjas.2020.3.3.02

Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II

Do Quang Giam (*) 1 , Dao Thi Hoang Anh 1 , Vu Ngoc Huyen 1 , Lai Phuong Thao 1 , Dao Huu Bao 2   , Do Thi Minh Van 3

  • Corresponding author: dqgiam@vnua.edu.vn
  • 1 Institute Faculty of Accounting and Business Management, Vietnam National University of Agriculture
  • 2 The Vietnam Bank for Agriculture and Rural Development-Bac Giang Branch II
  • 3 Master student, University of Paris Dauphine & ESCP Europe

    • Keywords

    Group lending development, microfinance, microcredit, Agribank, Vietnam

    Abstract


    Group-based lending is a form of loan provision for individuals and households in rural areas for production and consumption purposes. Proceeding from the imbalance between demand and supply on small-scale capital, and also Government policies on sustainable poverty reduction, the Vietnam Bank for Agriculture and Rural Development (Agribank) has coordinated with its local authorities and socio-political organizations to provide loan services via group lending. The purpose of this paper was to evaluate the status of group lending development of the Agribank-Bac Giang Branch II. The paper used secondary data collected from the branch and primary data gathered from 50 representative customers and 10 credit officers related the group lending of the branch. Data analysis methods consisted of descriptive statistics and comparative analysis, incorporated with the measurements for bank performance and quality. The findings show positive prospects in both the bank and customers for the development of group lending activity and obstacles in the group lending development of the branch. The paper also proposes some solutions for the branch to tackle difficulties and promote the development of group lending in the branch in Bac Giang province.

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