Banking-finance

SBV reports difficulties in hi-tech agriculture loaning program

SGGP
A representative from the State Bank of Vietnam (SBV) yesterday reported difficulties in implementing a loaning program to develop hi-tech agriculture at a conference in the Central Highlands province of Lam Dong.

Clean vegetable farming in Ward 5, Da Lat city (Photo: SGGP)

Clean vegetable farming in Ward 5, Da Lat city (Photo: SGGP)

Specifically, the Prime Minister has required to supply a VND100 trillion ($4.4 billion) credit package to encourage hi-tech applications in farming with the interest rate 0.5-1.5 percent lower than normal loaning rates.
However SBV’s representative said that hi-tech agriculture is a new unprecedented development direction in Vietnam’s agricultural industry. Therefore, projects’ implementation faces many risks while there is a shortage of risk prevention tools.
In addition, hi-tech agricultural production works such as glass houses and shade net houses have not been granted with ownership certificates of properties associated with land. That has raised difficulties for businesses and residents in mortgaging the properties for bank loans.
At the conference, the Ministry of Agriculture and Rural Development said that the country’s agricultural industry revenue tops US$30 billion a year, supplying livelihoods for over 10 million households.
The state has many specific policies to attract investment in the field including mechanisms to boost hi-tech agriculture. Still, delegates at the conference said that residents’ access to these policies has been limited.

By DOAN KIEN – Translated by Hai Mien

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