Over $597 million disbursed in support of agro-forestry, aquatic sectors
More than VNĐ15 trillion (US$597 million) has been disbursed under a credit scheme to support Vietnamese agroforestry and aquatic sectors since July last year, heard participants at a conference last week to discuss measures on maintaining Việt Nam's key agricultural exports.
Đào Minh Tú, deputy governor of the State Bank of Vietnam (SBV), said the entire amount had been disbursed successfully, nearly two months before the deadline of the end of June 2024.
Tú said the loans, with interest rates lower than market rates by 1-2 per cent annually, were designed to help the sectors cope with and overcome difficulties experienced during this turbulent period.
He said the SBV is willing to increase the amount to over VNĐ30 trillion if there is strong demand within the sectors. According to a report by the central bank, accumulated funds of over VNĐ17.5 trillion have been disbursed so far among 6,500 borrowers.
Among these, loans intended for agroforestry have reached
VNĐ4.45 trillion, or 25.7 per cent, while loans intended for the aquatic sector have reached over VNĐ13 trillion, or 74.3 per cent of the total, with the lion's share going to business borrowers at 83 per cent of the total amount.
Nguyễn Hoài Nam, secretary-general of the Vietnam Association of Seafood Exporters and Producers (VASEP), said the credit scheme has been a welcome boost, relieving a lot of financial pressure on businesses.
With the sectors' prospects for the remainder of the year looking increasingly bright, he said the amount should be increased to VNĐ30 trillion to allow businesses and farmers to ramp up investment in expanding production, getting ready for market rebound.
However, several participants voiced concerns over the support scheme's accessibility as businesses have reported certain banks' unwillingness to take part.
In a recent survey conducted by VASEP, businesses and farmers are especially interested in low-interest loans in both USD and VNĐ, with banks implementing a more streamlined loaning process.
"The credit ratio for export companies is expected to increase to over half of the funds in the remaining months of 2024, almost double the amount disbursed to them so far," said a VASEP representative.
Trịnh Đức Kiên, deputy director of a wood export company, said many firms in the industry have been facing significant pressure to repay previous loans.
"In addition to lower rates, businesses also look forward to longer terms to repay their borrowings," he said. Kiên also called for greater support to be provided to small and medium-sized enterprises (SMES).
Phùng Thị Bình, deputy director-general of Agribank, said the bank has experienced some difficulties during the implementation of the support scheme, including issues in managing cash flow and monitoring invoices by borrowers.
The central bank's deputy governor said it is in businesses' interest to work together with banks to work out solutions to preventing capital loss. Regarding a common request by businesses to extend borrowing terms, he said the decision falls under the banks' jurisdiction and discretion, but banks must do all they can to support businesses.