Implementing the Project of 1 million hectares of high-quality rice: Agribank strives to fulfill its mission

To build a green, low-emission and climate-resilient agriculture, there needs to be a synchronous participation of the State, businesses, people and especially timely support from the credit and banking systems. Agribank, as a key and pioneering unit, is actively disbursing funds for the Sustainable Development Project of 1 million hectares of high-quality, low-emission specialized rice to build a sustainable agriculture.

The destination is low-emission agriculture

According to experts, developing sustainable agriculture is becoming the “must-follow path” for Vietnamese agriculture, not just a choice. Low-emission agriculture is the goal and destination. This is especially important when the agricultural sector will participate in the goal of Vietnam achieving NetZero by 2050 as committed by Prime Minister Pham Minh Chinh at COP26.

The NetZero goal in agriculture, also known as "Net Zero Emissions", is to reduce greenhouse gases (such as CO2, CH4, N2O) from agricultural activities to a level that the Earth can absorb or remove, bringing total net emissions to 0. This is towards a green, sustainable agriculture, minimizing negative impacts on the environment and adapting to climate change. And, this is also the goal and meaning of the Prime Minister 's "Sustainable development project of 1 million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030".

At the working session with ministries, branches and localities on the Project on sustainable development of one million hectares of high-quality, low-emission rice associated with green growth in the Mekong Delta (the Project) recently held in Can Tho, Prime Minister Pham Minh Chinh affirmed that the Project on one million hectares of high-quality, low-emission rice is the first project in the world and is also the pride of Vietnam. The Prime Minister highly appreciated the initiative of the Mekong Delta provinces in implementing the models and the participation and positive response of farmers and cooperatives. In addition, the implementation of the Project is of great significance, not only in terms of material but also important in terms of politics and spiritual values. At the same time, the Prime Minister requested that localities must complete the planning of the specialized area of one million hectares of high-quality rice in the third quarter of 2025.

Banking industry finally gets involved

Agribank is the key bank implementing the loan project for 1 million hectares of high-quality and low-emission rice cultivation in the Mekong Delta.

Reporting to the Prime Minister, leaders of central ministries, sectors and localities in the Mekong Delta region, Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha said that the banking system has actively participated in implementing the Project. In particular, the SBV has proactively coordinated with the Ministry of Agriculture and Environment, deployed many solutions, and directed commercial banks to actively lend for the Project.

To date, in addition to the Agribank system, which is the main bank participating in the unlimited credit limit for the Project, 7 other commercial banks have also registered to participate in lending to members of the Project with a registered capital in the pilot phase (until the end of 2025) of about 17,000 billion VND. "It is worth noting that in just one month (until June 30, 2025), after the Ministry of Agriculture and Environment announced the list of models and enterprises participating in the Project, banks have actively approached customers to disburse loans. Thanks to that, the loan disbursement turnover for this Project has reached about 5,200 billion VND," Mr. Pham Thanh Ha informed.

The Deputy Governor affirmed that the SBV will continue to direct commercial banks to actively approach customers eligible for loans under the Project to increase disbursement speed; at the same time, closely coordinate with the Ministry of Agriculture and Environment and relevant localities and units to promptly handle problems and difficulties arising in the process of implementing capital funding for this Project.

Agribank is ready to serve

“By the end of the first quarter of 2025, outstanding loans for the rice sector of Agribank branches in the Mekong Delta reached VND 40,500 billion with 39,443 customers, an increase of over VND 3,800 billion compared to the beginning of 2025.

Outstanding rice loans of Agribank branches in the region are distributed to all stages in the rice value chain. Specifically, outstanding loans for rice cultivation reached VND 4,035 billion; loans for rice production and processing reached VND 6,610 billion; loans for domestic rice wholesale and retail reached VND 28,751 billion and loans for rice export reached VND 1,104 billion.

Implementing the instructions of the Government and the State Bank, over the years, Agribank has always played a leading role in supporting credit in the "Tam Nong" sector, aiming for a sustainable agriculture. Right at the Conference to deploy the Preferential Credit Program to implement the Project of 1 million hectares of high-quality and low-emission rice in the Mekong Delta at the end of November 2024, Agribank General Director Pham Toan Vuong committed to providing products and services to individuals, farming households, businesses, cooperatives, and cooperative groups participating in the Project. "Agribank will use the bank's own resources to support reducing interest rates for customers by at least 1%/year compared to the normal lending interest rate" - Agribank General Director Pham Toan Vuong emphasized.

Agribank General Director Pham Toan Vuong committed to accompanying businesses in implementing the Project.

In fact, right after the Prime Minister issued Decision 1490/QD-TTg, Agribank signed a Memorandum of Understanding with the Ministry of Agriculture and Environment; and when the State Bank issued a document guiding the Loan Program, Agribank also issued an internal document guiding the implementation of the Loan Program for linking production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta to individuals, farming households, cooperatives, cooperative unions and enterprises participating in the Project. Currently, Agribank is also developing specialized credit products for each group of individual customers, farming households, cooperatives and enterprises so that they can be implemented as soon as the People's Committees of provinces and cities, the Ministry of Agriculture and Environment announce the list of specialized areas, linkages, entities participating in the linkage and cost norms, technical and economic norms for production in accordance with the standards in the Project. “In the immediate future, the minimum scale of implementation is 30,000 billion VND and will continue to be supplemented during the implementation process. Lending products will be optimized in terms of interest rates, reducing procedures on the basis of managing cash flow in the linkage, thereby contributing to the successful implementation of the 1 million hectare rice project,” said Mr. Pham Toan Vuong.

Sharing more about the implementation of the Project, Agribank Deputy General Director Phung Thi Binh said that for the subjects participating in the linkage chain in the project, Agribank reduces interest rates by 1-2%/year to help businesses and farmers access capital more conveniently. Agribank does not limit medium and long-term loans and is ready to meet the needs of businesses participating in the Project, at the same time wishing to build a closed linkage chain, from farming households, raw material suppliers to purchasing, processing and exporting enterprises. This will help the parties reduce costs, enjoy preferential policies such as service fees and loan guarantee conditions.

Source: https://daibieunhandan.vn/trien-khai-de-an-1-trieu-hec-ta-lua-chat-luong-cao-agribank-no-luc-thuc-hien-su-menh-10380307.html