21:09 (GMT +7) - Thursday 17/08/2017

Vietnam Today

Agriculture lending on the rise

Released at: 19:01, 05/07/2017

Agriculture lending on the rise

Photo: Viet Tuan

Outstanding loans for agriculture up 9.9% from end-2016 to end-May.

by Ngoc Chi

Total outstanding loans for hi-tech agriculture have reached nearly VND32.34 trillion ($14.2 billion), Mr. Tran Van Tan, Deputy Director General of the Credit Department at the State Bank of Vietnam, told a recent conference in Hanoi.

Some VND27.7 trillion ($1.21 billion) of these loans were provided to high-tech agriculture projects and the remaining VND4.6 trillion ($202.4 million) to clean agriculture projects. There are no bad debts, according to the central bank.

Mr. Tan pointed out that outstanding loans for agriculture and rural development have significantly improved in recent times. As at May, total outstanding loans to the sector reached $50.6 billion, an increase of 9.9 per cent since the end of last year and accounting for 19 per cent of all outstanding loans.

Many agricultural support policies have been introduced over the years. In 2010, the government issued Decision No.176/2010 to develop agriculture applying high technology to 2020. After that, Decisions No.41 and 55 were also issued, creating opportunities for individuals and organizations participating in the agriculture sector.

Thanks to such policies, a number of large-scale high-tech projects have gotten underway, involving cattle breeding, horticulture, and fruit and vegetable exports.

In March, Prime Minister Nguyen Xuan Phuc signed a resolution providing a credit package worth VND100 trillion ($4.4 billion) at lower than market rates for the development of high-tech agriculture.  

Vietnam’s agriculture sector targets growth of 2.5 to 2.8 per cent this year, production value growth of 3 to 3.2 per cent, and total export turnover of $32.5 billion.

According to Minister of Agriculture and Rural Development Nguyen Xuan Cuong, 2017 is a pivotal year in the 2016-2020 development plan in the context of the sector still battling many difficulties.

“The sector continues to implement the overall objective of building agriculture into a modern and sustainable sector,” he said, adding that safe agricultural products are a priority in 2017.

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