16:18 | 17/04/2016 Finance - Banking
(VEN) - Banks have provided around VND2 trillion in loans for building new fishing boats and upgrading existing vessels as part of the government’s credit policy for the fishing industry. However, the implementation of this policy has still revealed problems.
The State Bank of Vietnam has pledged loans totaling VND14 trillion for fisheries development
Governmental Decree 67 which laid out credit policies to bolster the efficiency of the fishing sector was focused on improving the maritime economy through providing assistance for trawling and fishery logistics activities. Commercial banks committed themselves to meeting the demand for loans under the decree. As soon as the decree took effect, the State Bank of Vietnam (SBV) pledged loans totaling VND14 trillion for fisheries development.
So far, commercial banks have received 605 loan requests from boat owners from 27 provinces and cities. Credit agreements valued at over VND4 trillion for constructing 365 new boats and upgrading 20 existing vessels have been implemented over more than a year of the decree. So far, nearly VND2 trillion have been disbursed.
The SBV said that since June 2015 the number of loans it signed with fishermen has considerably increased. Fishermen have launched 84 new fishing boats and 12 upgraded boats. Commercial banks have disbursed nearly VND64 billion in loans for 204 customers.
Quang Ngai Province People’s Committee Vice Chairman Pham Truong Tho said commercial banks had accelerated the disbursement of loans, creating favorable conditions for fishermen to build new boats.
Dealing with difficulties
However, the implementation of Decree 67 still reveals many problems related to value added tax (VAT) applied to building new boats and upgrading existing boats for offshore seafood catch, insurance, or developing seafood production-consumption chains.
To deal with these problems, localities, sectors, and ministries, especially the Ministry of Agriculture and Rural Development, Ministry of Planning and Investment, and Ministry of Finance need to maintain tighter coordination in improving critical infrastructure for seafood catch and waterway transport, developing fishing, processing, and retail cooperation, and providing guidance for implementing VAT-related regulations.
According to the representatives of some localities, commercial banks need to continue simplifying lending procedures in order to facilitate access to loans under Decree 67. Banks also need to take the initiative in contacting fishermen who are eligible to borrow, and guiding them how to make loan requests. In the process of dealing with loan requests, banks have to give clear reasons for refusing to provide loans for fishermen who they find to be ineligible. In cases where fishermen meet difficulties in making loan requests, commercial banks have to report these cases to SBV branches in provinces and cities and the steering committee for the implementation of Decree 67 so that problems can be dealt with on a timely basis.
At a recent meeting held in Quang Ngai Province to review the implementation of Decree 67, representatives from BIDV, Vietcombank, VietinBank, and Agribank signed 14 loan agreements valued at VND190 billion with boat owners from Quang Nam, Binh Dinh, Kien Giang, and some other provinces.