Agribank and the banking industry are committed to meeting the capital needs to implement the Project of 1 million hectares of high-quality rice cultivation.

Through a field survey of enterprises, cooperatives, and farming households in Dong Thap province participating in the "Loan Program for Linking Production, Processing, and Consumption of High-Quality and Low-Emission Rice Products in the Mekong Delta", the Bank for Agriculture and Rural Development ( Agribank ) and the banking sector are committed to meeting the capital needs to implement the "Project of 1 million hectares of high-quality rice cultivation". Helping businesses and farmers access capital easily Recently, Permanent Deputy Governor of the State Bank Dao Minh Tu and the delegation of the State Bank, the Bank for Agriculture and Rural Development (Agribank) conducted a field survey at businesses, cooperatives, and farming households in Dong Thap province participating in the Loan Program for linking production, processing, and consumption of high-quality and low-emission rice products in the Mekong Delta according to Decision 1490/QD-TTg of the Prime Minister approving the Project "Sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030" (Project).

Deputy Governor of the State Bank of Vietnam Dao Minh Tu and Deputy General Director of Agribank Phung Thi Binh discussed with representatives of Thang Loi Cooperative about the banking sector's mechanisms and policies on participating in the rice production chain. Photo: Agribank

Mr. Nguyen Khac Duy, Deputy Director of Chon Chinh Import-Export Company, shared that participating in the Project is beneficial for both businesses and farmers. First of all, businesses will have access to capital with suitable interest rates to serve farmers in purchasing effectively. Farmers will benefit from the association with businesses, and businesses will also benefit from having a stable source of goods. This cooperation helps businesses ensure supply, avoiding shortages when needing to sign large orders. If the 1 million hectare project is well implemented, farmers' cultivation costs will decrease, while the quality of goods will be improved. As a result, higher quality rice will help businesses achieve better selling prices in the market. From the perspective of the banking sector, implementing the Prime Minister's direction, the State Bank has developed a mechanism and implemented a preferential credit program for components participating in the rice production chain, especially in the 1 million hectare high-quality rice project to reduce emissions. As the key bank piloting this project, Ms. Phung Thi Binh, Deputy General Director of Agribank, said that after the Prime Minister approved the 1 million hectare rice project in November 2023, Agribank signed a cooperation agreement with the Ministry of Agriculture and Rural Development (MARD) to take the lead in implementing the project. After the MARD and the State Bank issued guiding documents, Agribank also quickly directed its branches, especially in the Southwest region, to implement preferential loans. For those participating in the project's chain, Agribank reduced the minimum interest rate by 1%/year to help businesses and farmers access capital more easily. Agribank does not limit medium and long-term lending capital and is ready to meet the needs of businesses participating in the project. “Agribank wants to build a closed chain, from farmers, raw material suppliers to purchasing, processing and exporting enterprises. This will help all parties reduce costs, enjoy preferential policies such as money transfer service fees and loan guarantee conditions. Agribank is expanding this model to best support chain members,” added Agribank Deputy General Director Phung Thi Binh. Ready to meet short-term, medium-term and long-term investment capital needs Through contact and listening to the opinions of cooperatives and farmers, Permanent Deputy Governor of the State Bank Dao Minh Tu commented that farmers and enterprises are very excited to participate in this Project. Because participating in this chain helps them reduce borrowing conditions such as collateral, creating favorable conditions for low-interest loans, simpler procedures, reducing product costs, and at the same time encouraging members to closely link in the chain. This is the initial success of the Project. Agribank affirmed that it is ready to meet the demand for short-term, medium-term and long-term investment capital. However, the State Bank also encourages co-financing from many banks to support enterprises in the chain to expand cultivation areas, modernize agriculture, improve rice processing and export capacity, etc. "This is a correct policy of the Party and the State, and the program has shown initial effectiveness. The banking sector is committed to meeting capital needs, focusing on prioritizing policy mechanisms, creating favorable conditions for enterprises and cooperatives to have resources for sustainable development of this project," Deputy Governor of the State Bank Dao Minh Tu emphasized. According to the representative of Agribank's leadership in the Southwest region, Agribank has currently deployed to the branch system in 12 provinces and cities in the Mekong Delta region (except Ben Tre ) to prepare plans and solutions to support households, cooperatives and businesses participating in the Project on policies, procedures, and at the same time grasp the demand for loans to synthesize and develop the most suitable credit product policies for people to implement the Project. In the coming months, when localities complete the announcement of specialized areas, linkages and entities participating in rice linkages in the area according to Decision 1490/QD-TTg, at the same time, the Ministry of Agriculture and Rural Development builds and promulgates the technical and economic norms for high-quality rice production, as well as announces the list of specialized areas of the Project, Agribank branches can approach, consider and decide to lend to each model. At the same time, it will coordinate with departments, branches and subjects in each model to record and handle difficulties and problems related to credit capital issues during the implementation of this Project. In addition to the initiative of the banking industry with the determination and support of other ministries and branches, the Standing Deputy Governor of the State Bank Dao Minh Tu believes that by 2030 there will be 1 million hectares of rice, ensuring the dual goal of improving quality and reducing emissions. Source: https://daibieunhandan.vn/agribank-cung-nganh-ngan-hang-cam-ket-dap-ung-du-nhu-cau-von-trien-khai-de-an-1-trieu-ha-chuyen-canh-lua-chat-luong-cao-post395638.html