Hanoi (VNA) - Thirty years since its establishment, the Bac A ꦯJoint Stock Company (Bac A Bank) has emerged as a pioneer in responsible finance, fostering a new generation of customers💃 aligned with the principles of the green economy, the knowledge economy, and the circular economy. With a foundation in sustainable development, the bank has significantly contributed to the country’s economic growth.

A journey of expansion and excellence

At the 30th anniversary celebration of Bac A Bank on September 17, representatives from the State Bank of Vietnam's Nghe An branch commended the bank's remarkable progress. From an initial charter capital of 20 billion VND (over 778,000 USD), Bac A Bank has navigated economic fluctuations to achieve substantial growth, strengthening its financial capacity, governance, and operational efficiency while continuously enhancing service quality for individuals and businesses. Today, the bank boasts total assets exceeding 150 trillion VND, with a robust nationwide presence. As a publicly traded entity, it has cemented its reputation for transparency and credibility, earning customer trust and securing a strong market position. Reflecting on Vietnam’s economic challenges in the late 1980s, marked by triple-digit inflation and severe trade imbalances, Bac A Bank emerged during a pivotal era of banking reform following the Sixth Congress of the Communist Party of Vietnam. The enactment of Banking Ordinance No. 38 on May 24, 1990, paved the way for joint-stock banks, liberalising financial and credit operations. Founded on September 17, 1994, Bac A bank was the first joint-stock commercial bank in central Vietnam, with an initial capital of 20 billion VND. Its original logo, depicting two hands supporting an ancient Van Lich coin, symbolised a commitment to integrity and financial stability. This establishment marked a groundbreaking shift in the banking sector, breaking monopolies and fostering market-oriented mechanisms. On its grand opening day, Bac A Bank’s first headquarters at No. 108 Nguyen Thi Minh Khai street, Vinh city, Nghe An province, saw long queues of people eager to deposit their savings. The key attraction was its flexible interest rate policy: if customers had to withdraw their funds before maturity, they would still receive interest corresponding to the actual deposit period, while the remaining days would be subject to the non-term interest rate. Experts regarded this approach as a testament to the bank’s integrity and commitment to shared benefits, effectively breaking the monopoly of the time. This policy laid the groundwork for public trust, forming the foundation for the ban’s sustainable growth.

The bank’s early journey was far from smooth. During that period, illegal informal lending networks were rampant across the country, with Nghe An being particularly affected. The collapse of numerous credit cooperatives, much like a domino effect, further intensified the crisis, followed by the 1997 Asian financial turmoil. Amidst this turbulent landscape, Nghe An’s provincial leaders and banks held continuous discussions to address collateral and debt resolution challenges. Banking is a unique business. It involves the transfer of both ownership and usage rights. Thus, upholding the rule of law was paramount. The effectiveness of investment projects, the capability and determination of borrowers, and collateral assets became critical factors in lending decisions. Bac A Bank took a proactive approach by seeking out potential borrowers, particularly in Vietnam’s key agricultural sectors, including rice, forestry, and timber production. Beyond merely managing cash flow, the bank played an active advisory role, assisting clients in structuring their businesses, monitoring operations, and providing timely warnings to help them adapt to market fluctuations. By prioritising smart and strategic capital allocation, the bank not only safeguarded its investments but also nurtured a generation of sustainable, prosperous businesses, forming the foundation of its success today.

A customer-centric approach

During its construction and development, Bac A Bank has consistently prioritised a humane approach to banking. Upholding the philosophy of “Giving others an opportunity is also giving ourselves an opportunity,” the bank has demonstrated financial compassion, opting to support customers rather than immediately foreclosing assets. This strategy, known as “nurturing debts to recover debts,” reflects its commitment to social responsibility, assisting borrowers in overcoming financial hardships while safeguarding their livelihoods.

Thai Van Sau, an early client, recalled: “When I left my government job to start a private company, I had no capital, only human resources and expertise. Without Bac A Bank’s support, I couldn’t have established or expanded my business.”

According to regulations, banks reclaim properties within a year, but Phan Thi Thuy, a client of Bac A Bank said the bank allowed her family to keep their home and even helped them generate income through rental business. “We owe our present stability to Bac A Bank, especially to Ms. Thai Huong,” Thuy noted. Another notable case involved Nguyen Trong Phuong, who, facing financial ruin, sought to sell his house to settle debts. However, Bac A Bank CEO Thai Huong refused, recognising the family’s vulnerable situation. Instead, the bank provided alternative financial solutions, enabling him to rebuild his business while employing his son.

A prime example of Bac A Bank’s far-sighted leadership was its decision to pioneer the development of modern retail in Nghe An. In September 1999, the bank advised on investment and provided credit to establish the first-ever supermarket in the province, an initiative that introduced a new standard of commercial sophistication to the people of Vinh City. This strategic move underscored the bank’s commitment to enhancing customer experiences, laying the foundation for its future role in funding and advising businesses pursuing integrated supply chains, from production and distribution to retail, with a focus on clean, health-conscious products. Access to sustainable capital has been a crucial factor in enabling businesses to successfully implement long-term agricultural projects. Bac A Bank, in 1999, became one of only three Vietnamese banks selected to participate in the World Bank’s Rural Finance Project, a milestone that marked a major leap forward just five years after its founding. Since then, the bank has played an active role in structuring financial solutions, helping enterprises secure flexible and preferential funding from both domestic and international financial institutions. In 2011, as part of its strategy to focus resources on high-tech agriculture and comprehensive business development, Bac A Bank rebranded with a new corporate identity. Its stylised lotus emblem symbolises wisdom, integrity, dedication, ambition, and optimism for a brighter future, a declaration of its commitment to service excellence and long-term vision. Over the years, Bac A Bank has steadily reinforced its market position, overcoming challenges to achieve remarkable financial growth. Total assets grew from 57 billion VND in 1994 to 2,950 billion VND in 2004, 57,182 billion VND in 2014, and 154,482 billion VND as of June 30, 2024. Charter capital expanded from 20 billion VND in 1994 to 110 billion VND in 2004, 3,700 billion VND in 2014, and 8,959 billion VND in 2024. Today, Bac A Bank operates a nationwide network of 175 transaction points across 42 provinces and cities.

Fostering a generation of "Green Customers"

"But the measure of Bac A Bank’s success is not just in the numbers." Thai Huong, Labour Hero, CEO of Bac A Bank, and Chairwoman of the Strategic Council of TH Group, affirms that the bank’s true success lies in its investment advisory and credit solutions, which have cultivated a new generation of customers operating under green economy, knowledge economy, and circular economy models. These businesses, built on sustainable development principles, contribute to a prosperous and modern nation. With the guiding philosophy that "a bank must truly be the midwife of the economy," Bac A Bank has remained committed to harnessing Vietnam’s strengths while integrating global advancements in science, technology, and management. By doing so, the bank has helped drive high labour productivity, optimise costs, and ensure international-quality products. This approach has transformed outdated, fragmented production methods into modern, cutting-edge systems incorporating artificial intelligence, the Internet of Things, big data, and cloud computing. For this reason, the bank prioritises investment advisory and credit for high-tech projects in agriculture, forestry, fisheries, medicinal herbs, healthcare, and education, as well as processing and manufacturing industries. Through this strategy, it is steadily building a comprehensive financial service ecosystem, maximising customer potential in alignment with future economic models.

Among the investment advisory projects led by Bac A Bank, the Dairy Farming and Milk Processing project in Vietnam stands as one of the most remarkable. In 2009, Bac A Bank became the investment advisor for TH Group in a groundbreaking initiative: the dairy farming and fresh milk processing project in Nghe An. TH Group spearheaded a revolution in fresh milk production, fundamentally transforming the dairy industry. This path also enabled TH Group to unlock the key to Vietnam’s agricultural success, the synergy of Vietnamese intelligence, domestic resources, and cutting-edge global technology, combined with advanced management science. From the world’s largest concentrated dairy farm complex in Nghia Dan District, Nghe An Province, and a nationwide network of high-tech farms, TH, under Bac A Bank’s investment advisory, has expanded internationally with a dairy farming project in Russia and large-scale corn and cotton farms in Australia. Today, under Bac A Bank’s continued investment advisory, TH Group is broadening its mission to deliver valuable, all-natural products that promote health, including clean food, clean beverages, and especially medicinal herbs. These initiatives form key highlights of the "Economy under the forest canopy" model, encompassing green economy and circular economy principles, an ambitious journey toward sustainability that Bac A Bank and TH Group jointly envision and pursue. This journey is further enriched by social welfare, healthcare, and education projects such as the TH School system and the TH Medical high-tech healthcare complex. Developed through a well-structured roadmap, these initiatives aim to build a truly fulfilling and prosperous life for the Vietnamese people.

Experts said, Bac A Bank’s strategy of utilising intelligent, valuable, and civilised capital continues to flow into pioneering projects, driving revolutions in organic food production that meet international standards, herbal beverages, and reduced-sugar drinks that use natural sweetness from fruits and seeds. These innovations not only provide essential nutrition but also help prevent non-communicable diseases of modern times, such as diabetes, obesity, and cardiovascular conditions, thus contributing to food safety, national food security, and the enhancement of public health - a fundamental strength of the nation. At the same time, the bank has gradually integrated farmers into international-standard supply chains, transforming them into high-tech agricultural workers. This initiative fosters sustainable poverty alleviation and empowers farmers to achieve prosperity on their own land. Speaking at Bac A Bank’s 30th-anniversary celebration, Bui Thanh An, Vice Chairman of the Nghe An Provincial People's Committee, affirmed that the bank, alongside TH Group, has played a pivotal role in transforming western Nghe An from a harsh, barren land into a thriving agricultural hub. Agricultural products such as milk, herbal beverages, and clean vegetables from Nghe An have reached consumers across Vietnam and beyond, earning widespread trust and appreciation. Notably, the industrial-scale dairy farming and milk processing project led by TH Group, under Bac A Bank’s investment advisory, has achieved remarkable growth over 15 years, consistently setting new records in production, revenue, and market share. From Nghia Dan, this high-tech dairy farming and milk processing model has expanded nationwide, with operations in Ha Giang, Cao Bang, Thanh Hoa, Phu Yen, Kon Tum, and An Giang, etc. It has become a benchmark for high-tech agricultural production and a model for implementing green and circular economic principles.

Former Governor of the State Bank of Vietnam, Cao Sy Kiem, said during his tenure, Bac A Bank was known for its many initiatives and innovations that quickly addressed challenges within the credit system. He stressed that Bac A Bank’s unique approach set it apart, making the bank more versatile and comprehensive. Its strategies have contributed not only to the banking system and the business community but also to the broader economy, social progress, scientific advancements, and overall quality of life. "Today, the achievements and contributions of Bac A Bank clearly demonstrate that every decision, every strategic move, and every implementation plan throughout different historical periods have left a significant mark. They have successfully navigated economic difficulties and pressing challenges with creativity, resilience, and impactful contributions," Kiem affirmed. Labour Hero Thai Huong stated that Bac A Bank remains steadfast in its mission to develop into a modern, multi-functional bank with advanced governance, adhering to both Vietnamese and international standards. With a customer-centric approach, the bank continuously invests in digital transformation and technological upgrades to diversify its financial services and enhance customer experience. Thirty years ago, Bac A Bank established "pioneering spirit" as its first core value, laying the foundation for a sustainable future and leading the way in the digital economy. With the same unwavering commitment as in its early days, Bac A Bank believes in the power of high technology combined with Vietnamese intellectual resources, aiming for genuine and sustainable values that prioritize human well-being. It actively contributes to the digital transformation revolution, which General Secretary To Lam described as a key driver for advancing production forces and refining economic relations to usher Vietnam into a new era.

A commitment to social responsibility

Beyond being an economic enabler, Bac A Bank and its ecosystem of businesses have consistently supported the government, ministries, and social organisations in addressing economic and social welfare challenges. Over the past three decades, the bank has provided financial and moral support to Vietnamese Heroic Mothers, disadvantaged individuals, people with disabilities, and students from underprivileged backgrounds, helping them pursue education and build better futures. With the philosophy of "giving someone a fishing rod rather than a hundred fish," Bac A Bank has funded thousands of homes and livelihood initiatives for struggling families. It has built sanitary facilities, bridges, and schools in remote areas, improving infrastructure for education and daily life. During the COVID-19 pandemic, Bac A, TH Group, and the Vi Tam Voc Viet (For Vietnamese Stature) Foundaton collectively contributed hundreds of billions of VND in cash, essential goods, and medical supplies to support affected communities. More recently, when Typhoon Yagi devastated northern Vietnam, Bac A Bank’s ecosystem immediately mobilised relief efforts, delivering 300,000 bottles of TH true WATER (worth 1.5 billion VND) to flood-affected residents in dire need of clean drinking water. By September 14, TH Group, the Vi Tam Voc Viet Foundation, and Bac A Bank had provided over 4 billion VND in direct financial assistance to help local authorities procure emergency supplies and support recovery efforts. Since its establishment on December 6, 2014, the Vi Tam Voc Viet Foundation has played an active and effective role across Vietnam, earning recognition from both the government and international organisations. In 2019, it was honored as Asia’s Best Non-Profit Organisation. Over a decade, the foundation has grown into a professional and influential bridge connecting Vietnam to global social initiatives.

Over its 30-year journey, Bac A Bank has been awarded the Third-Class Labour Medal and numerous certificates of merit from government agencies and prestigious organisations. It has received accolades such as the Governor of the State Bank of Vietnam’s Commendation and the Nghe An provincial People's Committee’s Excellent Emulation Flag. Bac A Bank has also been recognised with titles including Bank for the Community, Leading Bank in Priority Customer Service, Vietnam’s Pioneer in Agricultural Investment Advisory, Outstanding Green Credit Bank, and Asia’s Excellent Enterprise. Thai Huong, CEO of BAC A BANK and Chairwoman of TH Group’s Strategic Council, has been honoured with prestigious titles such as "Visionary CEO of the Year – CEO with Excellent Vision, Global Trade Ambassador, and Asia’s Responsible Entrepreneur. She has received the Gold Award for Entrepreneur of the Year, the ASEAN Women Leadership Award, and has been named among Top 50 Asia's Powerful Businesswomen and the Top 10 Women Driving Sustainable Development. Alongside these distinguished accolades, her immense contributions to society and the economy earned her the title of Labour Hero in the Doi Moi (Renewal) era in 2020. Clearly, Bac A Bank’s strategic direction has shaped the institution it is today, 30 years of integrity, resilience, and growth./.