Agribank will be the leading bank providing timely capital at appropriate costs for all stages (planting, purchasing, processing, consumption) in the sustainable development linkage of 1 million hectares of high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta by 2030.
This information was released by the State Bank of Vietnam at a working session of the Prime Minister's delegation, led by Governor of the State Bank of Vietnam Nguyen Thi Hong, with Vinh Long province on February 26, 2024.
In the context of increasingly stringent international market demands for improved rice quality, food safety assurance, reduced use of chemical inputs, and reduced emissions in production, the Vietnamese rice industry is facing the need for transformation. Against this backdrop, on November 27, 2023, in Decision No. 1490/QD-TTg, the Prime Minister approved the Project "Sustainable Development of One Million Hectares of High-Quality, Low-Emission Rice Cultivation Associated with Green Growth in the Mekong Delta by 2030".
The project was launched with the goal of “establishing 1 million hectares of high-quality, low-emission specialized rice cultivation areas linked to the reorganization of the production system along the value chain, applying sustainable farming processes adapted to climate change, reducing greenhouse gas emissions, improving the income and living standards of rice farmers, ensuring national food security, stabilizing society, enhancing the quality and reputation of Vietnamese rice products in the world market, and moving towards a transparent, responsible, and sustainable rice industry.” The State Bank of Vietnam was tasked with researching and proposing the development of a credit program to support the linkage of production, processing, and consumption of high-quality, low-emission rice products in the Mekong Delta between cooperatives and enterprises.
To implement the assigned task, according to the Department of Credit for Economic Sectors, the State Bank of Vietnam (SBV) has organized working sessions and initially coordinated with the Ministry of Agriculture and Rural Development (MARD) and relevant units to exchange and agree on some contents and methods for implementing the lending program.
As a leading commercial bank in investing in the development of agriculture, rural areas, and farmers, and at the forefront of implementing policy credit, Agribank is trusted by the State Bank of Vietnam to fulfill its role as the leading bank in implementing the program, promptly meeting the demand for loans at appropriate costs for all stages (planting, purchasing, processing, and consumption).
Over the years, actively contributing to the modernization of agriculture, combating climate change, reducing emissions, sustainable resource management, and developing value chain lending, Agribank has also participated in four projects with the Ministry of Agriculture and Rural Development totaling nearly US$60 million (approximately VND 1,500 billion). Currently, Agribank is continuing to cooperate with the Ministry of Agriculture and Rural Development on four other projects (approximately VND 1,200 billion).
Under the High-Quality Rice Project (1 million hectares), Agribank and the Ministry of Agriculture and Rural Development signed a Memorandum of Understanding to implement a cooperation program providing banking products and services to participants under the Project. Accordingly, Agribank will advise, support, and provide banking products and services such as deposit services, loan services, and financial services, in line with the Project's objectives, to participating entities.
The Mekong Delta is one of the key economic development areas, especially in the agricultural and rural sectors. Agribank has always actively and comprehensively implemented credit policies serving the "three rural sectors" (agriculture, farmers, and rural areas) and specific credit programs. To date, Agribank's outstanding loan balance for the rice sector in the Mekong Delta has reached over 30 trillion VND with more than 33,000 customers, making it the largest lending area for the rice industry in the country. |
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