Credit boom for Central Highlands farming

10:22 | 20/03/2017 Economy

(VEN) - The State Bank of Vietnam (SBV) reports that capital continues to be poured into the Central Highlands in 2017 for hydropower, thermo-electricity, transportation, agricultural production and livestock projects.  

According to the SBV’s Credit Department, Central Highlands provinces raised total capital of around VND120 trillion in 2016, an increase of 24 percent compared to the end of 2015. In addition, total outstanding credit in this region stood at VND222 trillion, an increase of 19.5 percent compared to the end of 2015.

SBV Deputy Governor Dao Minh Tu said that the banking sector has paid greater attention to investments in the Central Highlands in order to promote the region’s potential and advantages, especially for the coffee sector. Loans for the coffee sector in the Central Highlands reached more than VND45 trillion, an increase of 13.53 percent compared to the end of 2015, accounting for 92.4 percent of total outstanding loans for the coffee sector nationwide.

The SBV issued Document 3227/NHNN-TD guiding the Vietnam Bank for Agriculture and Rural Development (Agribank) to implement lending policy for coffee rejuvenation in the Central Highlands during the 2014-2020 period. The Ministry of Agriculture and Rural Development plans to replant about 120,000ha, and the SBV has allocated about VND12-15 trillion to support lending for this project.

Thanks to bank credit, many businesses, households, farms and ethnic minorities have expanded their production and promoted the exploitation of the region’s strengths, such as growing several kinds of short-term industrial crops - coffee, rubber and pepper - and developing high-tech agriculture.

Tu said that the banking sector will continue to pour capital into agricultural projects in the Central Highlands. The prime minister has tasked the SBV with urgently implementing the VND60 trillion credit package to support such projects.

Businesses investing in particularly difficult areas, such as the Central Highlands, will be given priority. In addition, high-tech agriculture projects will be eligible for support by Agribank’s VND50 trillion credit package and the VND10 trillion credit package offered by LienVietPostBank at interest rates 0.5-1 percent lower than market rates. Moreover, the SBV will continue to amend and supplement mechanisms and policies to support high-tech agriculture projects.

At an investment promotion conference for the Central Highlands in May 2015, as many as eight commercial banks signed 19 agreements on projects and cooperation in hydroelectricity, transportation and agriculture, with commercial banks pledging to lend VND15 trillion for their implementation. By the end of September 2016, these banks had lent 11 projects loan sales of nearly VND2.9 trillion.

SBV Deputy Governor Dao Minh Tu said that investment in high-tech agriculture in the Central Highlands, in particular, and

the country in general will be prioritized.

Duy Minh