The State Bank of Vietnam (SBV) will require commercial banks support high-tech agriculture enterprises, under a direction from Deputy Prime Minister Vuong Dinh Hue.

Commercial banks are to cut interest rates by between 0.5 and 1.5 per cent on loans to high-tech agriculture enterprises and must advertise their programs to facilitate transparent access to borrowers.  

At a meeting with ministries to discuss the implementation of the Prime Minister's directive on a VND100 trillion ($4.39 billion) credit package for high-tech agriculture on March 23, Deputy Prime Minister Hue spoke of the importance of the credit package for agriculture and rural development and for the agricultural development policy within a Resolution from Party Congress and a Resolution from the National Assembly and the government.

“Enterprises and citizens agreed when the government announced this program,” the Deputy Prime Minister said. “Therefore, ministries must carry out the program seriously.”

Although there is a legal framework for the development of high-tech agriculture, in order to create a unified framework, Deputy PM Hue assigned the SBV Governor to issue a decision instructing commercial banks to implement the credit package under the Prime Minister’s instructions.

This must be carried out before amending Government Decree No.55/2015/ND-CP on credit policy for agricultural development and Circular No.10/2015/TT-NHNN from the SBV on lending to effective projects in high-tech agriculture, which are expected in the second quarter.

The SBV and the Ministry of Agriculture and Rural Development (MARD) regularly monitor the results of credit programs for agriculture and high-tech agriculture.

Deputy PM Hue asked MARD to coordinate with localities in planning areas, high-tech areas, planning for key agricultural production areas, and planning for the development of crops and livestock.

He said the sector bore less risk so he assigned the SBV to study the expansion of collateral in loans. Enterprises can acquire assets by effective business plan, through investment, or lending.

In order to support banks, the Ministry of Finance will finalize a draft decree on agricultural insurance, to be issued as soon as possible.

VN Economic Times