Agricultural Promotion Bank Co., Ltd (APB) was established on June 19, 1993, and has started its business operation since 1993. In the beginning, it was 100% owned by the government which has been developed according to related sectors and has provided the financial services with the objectives of providing the credits mainly for the agricultural and forestry sector.
By the year 2020, the Government has recognized and seen the importance of the Good Governance and the effective and profitable business, the Government of the Lao PDR has directed to improve the APB and agreed to sign a Memorandum of Understanding (MOU) on the joint investment in the APB between the Ministry of Finance and Phongsupthavy Group Co., Ltd in March 2021 and on December 13, 2021, the signing of the joint venture agreement in the APB between the Ministry of Finance and Phongsupthavy Group Co., Ltd was officially completed and has improved the management model of APB and transferring from the Government holding 100% shares to become a joint venture with Phongsupthavy Group Co., Ltd holding 70% shares and the government holding 30% shares and changing its business form to a limited company. It can be said that the APB is currently ready to operate its business in a comprehensive manner and operating its business under the management of the Bank of the Lao PDR and the Laws of the Lao PDR as well as to comply with its rights, roles, mandates and vision in the National social-economic development.