A pilot programme will aim at financing connectivity models between businesses and farmers in order to promote high-technology application in agricultural production and exports.

The State Bank of Vietnam (SBV), the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology are considering cooperation on the pilot programme.

Director of the Credit Department under the SBV Nguyen Viet Manh stated that there have been many agricultural production models promoting connectivity between businesses and farmers across the country.

A number of these models have proved to be successful, including the large-scale rice field model in the Mekong Delta province of An Giang and some other localities, the high-tech vegetable and flower cultivation model in the Central Highlands province of Lam Dong and the dairy farming and milk product production model in Nghia Dan in the central province of Nghe An.

Using these models, businesses have not only created large-scale rice fields and mechanised agricultural production, but also had stable raw material production areas and constructed trademarks and geographical indications for their products in both domestic and foreign markets. The models benefited both farmers and businesses.

At a government's regular meeting in February this year, SBV Governor Nguyen Van Binh suggested the construction of a credit programme for connectivity models and high-technology applications and farm export promotion projects.

The SBV, the Ministry of Science and Technology and the Ministry of Agriculture and Rural Development are working together to survey, research and construct experimental policies for a large-scale application of this pilot credit programme.

According to Manh, the pilot credit programme will reduce the input costs of the products of the connectivity models by offering preferential credit for the models.

The programme could provide unsecured loans for businesses and farmers as members of a connectivity model.

With this pilot programme, the banking sector can not only increase credit growth related to agricultural production but also promote large-scale, competitive agricultural production, contributing to gradually improving farmers' living standards and constructing and developing new rural areas.

Manh reported that about 20 connectivity models would be selected as the pilot credit programme's beneficiaries.

These include the large-scale rice field model, the product value chain-based connectivity model and the high-technology application business model, among others, with priority given to rice, seafood, livestock breeding, vegetables and fruits.

Two years after the completion of the pilot credit programme, the SBV will consider policy improvements and multiplication of the models.

Manh added that agricultural insurance policies, farm produce planning and its management, farm export promotion and law-based assistance and market information are important for the success of the pilot credit programme./