The outstanding debt amounts to over VND27,000 billion
In Vietnam, the Prime Minister has made numerous decisions and proposed important solutions to promote the development of industrial agriculture for ministries, departments and sectors.
In addition, the State Bank (SBV) has directed commercial banks (CBs) to introduce a loan program to promote the development of agriculture using high technology and clean agriculture with a number of key contents such as: Borrowers include legal entities and individuals People They need to borrow capital to implement projects, agricultural production and business plans that use cutting-edge technology and clean agriculture.
Commercial banks offset their own sources of capital for loans with loan interest rates in VND that are between 0.5%/year and 1.5%/year lower than the normal loan interest rates of commercial banks for the same term. The banking sector has fulfilled its assigned functions under the direction of the government; The loan program for the agricultural sector, which uses high technology and clean agriculture, has so far far exceeded the targets set by the government.
Statistical results show that outstanding loans to the high-tech agricultural sector reached about VND 9 billion by the end of September 2024, with over 27,000 customers having outstanding loans. Loan turnover will be about VND 9,100 billion in 2022, it will be over VND 15,000 billion in 2023, it will reach about VND 9,000 billion in the first months of 2024, with overdue debts being small (which is about 17,000% of total outstanding debt). ).
Production technologies in greenhouses, net houses, economical irrigation and deep processing of agricultural products in accordance with national and international standards have been borrowed by the banking industry for investment and have initially brought effective economic results; Contribute to bringing Vietnamese agricultural products deeper into the global value chain.
Mr. Vo Van Quang, deputy general manager of Bac A Commercial Joint Stock Bank, shared that, for example, he has set up an investment advisory board to help develop large-scale, modern, high-technology applied projects such as AI, digital technology, modern management…
Typically, the bank has advised TH Group to invest in a concentrated dairy farming project in Nghe An with an investment volume of US$1.2 billion, covering a total area of 37,000 hectares of land and 200,000 cows, of which 100,000 are suckling children using modern dairy farming technology.
There are still some problems
Although positive results have been achieved, lending to the agricultural sector that adopts high technology and clean agriculture still faces difficulties and obstacles in recent times. Among them, there are still outstanding problems: people and enterprises are not really willing to systematically participate in agricultural production using high technology, there is no effective plan for agricultural production using high technology and no feasible method for paying off debt, unstable consumers Market. Many companies have limited financial capacity, unprofessional accounting, lack of transparency of financial information and lack of collateral.
In order to develop agriculture using high technology and clean agriculture, Mr. Vo Van Quang – Deputy General Manager of Bac A Commercial Joint Stock Bank – suggested that the government and ministries and branches must have a mechanism to drastically concentrate ineffective land use . We call for the participation of companies with enough “heart” and “reach”, a force with sufficient capacity and potential in terms of capital, finance and economic management, technology, engineering and market thinking products, to arrange production, organize, guide people and attract, follow, collaborate, take responsibility and have fun together.
In order to improve the ability to provide and access credit capital for high-tech agriculture, State Bank Deputy Governor Doan Thai Son will continue to pursue a flexible monetary, credit and interest rate policy in line with macroeconomic developments and in line with capital to meet the needs of the economy and create the conditions for a reduction in interest rates in this sector.
The deputy governor urged lending institutions to proactively balance capital sources to promptly meet the capital needs for the development of rural agriculture in general and high-tech agriculture in particular. Improve the efficiency of evaluating and assessing customers’ creditworthiness, manage cash flow to improve the ability to lend without collateral, and eliminate collateral difficulties for customers. Continue to deploy solutions to overcome difficulties for customers affected by natural disasters and epidemics.
The deputy governor also wants businesses and households to further improve their financial and administrative capacity with the aim of producing high quality agricultural products. Raising awareness, innovative thinking about digital transformation and increased application of digital automation technology in production and business processes./.
