Illustrative photo (Photo: vneconomy.vn) Hanoi (VNA) - Prime Minister Nguyen Xuan Phuc hassigned a resolution providing a credit package worth 100 trillion VND (4.4billion USD) to invest in the development of high-tech agriculture at lower-than-marketrates.
The resolution stipulates that commercial banks must cut operationcosts so they can set interest rates for enterprises or individuals engaged inhigh-tech agriculture production at 0.5-1.5 per cent lower than the currentcommercial interest rates.
Addressing a conference in the capital city last week, DeputyPrime Minister Vuong Dinh Hue said that “before implementing the creditpackage, the Government, concerned ministries and sectors have to define whatis high-tech agriculture and its framework – including high-tech agricultureapplication, green agriculture and the technology which will be applied.”
He also pointed out the need to define “short term, mid term andlong term credit packages” to be applied in this programme. “Should we use theshort saving term for the mid- or long-term loan or not?” Hue asked.
Regarding the loan framework, the deputy prime minister askedwhether the credit should be disbursed according to development stages of hightech production, or not. He also asked whether individual household involved inhigh tech production should be included in the list of eligible borrowers,particularly big production households.
“What’s more important is that we only lend the money to the rightpeople/households,” Hue emphasised. He added that over the past few years, onlyroughly 20 enterprises involved in high-tech agriculture accessed credit at lowinterest rates.
Director General of Agribank, Tiet Van Thanh, and deputy directorgeneral of Vietcombank, Dinh Thi Thai, expressed support for the government’sdecision. Yet they asked for clear legal requirements on the part of borrowers,including required collaterals to avoid risks. “Low interest rate risks arevery high,” lamented Thai.
In his conclusion, Deputy Prime Minister Vuong Dinh Hue emphasisedthe importance of credit packages for high-tech agriculture in the context ofthe slow growth of the country’s primary industry.
He said the Government had already worked out a legal corridor toimplement the strategy on high-tech agricultural development.
He assigned the State Bank of Vietnam (SBV) to instruct allcommercial banks to implement the credit package in accordance to theGovernment’s instructions. Hue also asked the SBV to work closely with the MARDto periodically monitor the credit programme implementation.
To support banks involved in the program, Hue ordered the Ministryof Finance to complete as soon as possible a Government decree on agricultureinsurance.-VNA
The resolution stipulates that commercial banks must cut operationcosts so they can set interest rates for enterprises or individuals engaged inhigh-tech agriculture production at 0.5-1.5 per cent lower than the currentcommercial interest rates.
Addressing a conference in the capital city last week, DeputyPrime Minister Vuong Dinh Hue said that “before implementing the creditpackage, the Government, concerned ministries and sectors have to define whatis high-tech agriculture and its framework – including high-tech agricultureapplication, green agriculture and the technology which will be applied.”
He also pointed out the need to define “short term, mid term andlong term credit packages” to be applied in this programme. “Should we use theshort saving term for the mid- or long-term loan or not?” Hue asked.
Regarding the loan framework, the deputy prime minister askedwhether the credit should be disbursed according to development stages of hightech production, or not. He also asked whether individual household involved inhigh tech production should be included in the list of eligible borrowers,particularly big production households.
“What’s more important is that we only lend the money to the rightpeople/households,” Hue emphasised. He added that over the past few years, onlyroughly 20 enterprises involved in high-tech agriculture accessed credit at lowinterest rates.
Director General of Agribank, Tiet Van Thanh, and deputy directorgeneral of Vietcombank, Dinh Thi Thai, expressed support for the government’sdecision. Yet they asked for clear legal requirements on the part of borrowers,including required collaterals to avoid risks. “Low interest rate risks arevery high,” lamented Thai.
In his conclusion, Deputy Prime Minister Vuong Dinh Hue emphasisedthe importance of credit packages for high-tech agriculture in the context ofthe slow growth of the country’s primary industry.
He said the Government had already worked out a legal corridor toimplement the strategy on high-tech agricultural development.
He assigned the State Bank of Vietnam (SBV) to instruct allcommercial banks to implement the credit package in accordance to theGovernment’s instructions. Hue also asked the SBV to work closely with the MARDto periodically monitor the credit programme implementation.
To support banks involved in the program, Hue ordered the Ministryof Finance to complete as soon as possible a Government decree on agricultureinsurance.-VNA
VNA
