Diversify funding sources to support people and businesses.

Việt Nam•30/10/2023

With a loan from Agribank's Tuan Giao district branch, Ms. Doan Thi Thoa, from Tan Giang hamlet, Tuan Giao town, Tuan Giao district, has successfully developed a model for processing macadamia nuts. ***(In the photo: Ms. Doan Thi Thoa processing macadamia nuts.*** *Photo: Pham Trung)*

During a recent dialogue between the Chairman of the Provincial People's Committee and farmers, the issue of accessing capital for developing production projects, especially in the agricultural sector, was of great concern to many farmer members. Chairman Le Thanh Do requested that local Party committees and authorities strengthen the dissemination and promotion of loan programs and channels so that all farmers, cooperatives, and businesses are aware of and can access them. At the same time, he urged active cooperation with credit institutions to create favorable conditions for people to access preferential loans for production and business activities.

The Social Policy Bank, Dien Bien Province Branch, is a credit institution that has been accompanying the people, especially poor households, in the province for many years. In 2023, the Bank implemented 23 loan programs; by the end of September 2023, the total outstanding loan balance reached over 4,300 billion VND, with nearly 92,000 customers. Policy credit capital is always prioritized for people because it offers preferential interest rates, loan terms, simple and quick application procedures, and multiple loan channels, especially through entrusted activities via socio -political organizations: the Youth Union, the Women's Union, the Veterans Association, and the Farmers Association.

As of October 2023, the Veterans Association of Pu Nhi commune (Dien Bien Dong district) managed 4 savings and loan groups with 190 members; the total outstanding loan balance was 8.508 billion VND, with no overdue loans. Thanks to preferential loans from the Social Policy Bank, many member families have invested in developing economic models such as livestock and poultry farming, and macadamia nut cultivation, creating regular jobs, increasing income, and stabilizing their lives.

Mr. Lo Van Cuong, from Nam Ngam village (Pu Nhi commune), shared: "The Social Policy Bank's capital is easily accessible, with preferential interest rates, suitable for people in mountainous areas. Thanks to preferential capital through the commune's Veterans Association, I have been able to develop a poultry farming model. To date, the model generates an income of over 80 million VND per year."

In recent years, the Agricultural and Rural Development Bank (Agribank), Dien Bien province branch, has consistently allocated over 50% of its total outstanding loans to agriculture, rural areas, and farmers; actively supporting and promoting the restructuring of the agricultural economy, contributing to poverty reduction, and achieving socio-economic development goals in the area. As of July 31, 2023, the total outstanding loans to the agriculture and rural sector reached VND 3,786.393 billion, accounting for 53% of the total outstanding loans, with a total of 14,932 customers. Key areas of focus include: crop production with outstanding loans of VND 3,703 billion and 88 customers; livestock farming with outstanding loans of VND 378.69 billion and 2,530 customers; and mixed crop and livestock farming with outstanding loans of VND 2,307 billion and 12 customers. Related service activities have outstanding loans of VND 205.869 billion with 308 customers; agricultural products have outstanding loans of VND 396.035 billion with 527 customers; forestry products have outstanding loans of VND 10.912 billion with 8 customers; and aquatic products have outstanding loans of VND 3.890 billion with 7 customers...

Mr. Van Dinh Viet, Director of Agribank's Tuan Giao District branch, said: In implementing Government Decree No. 55/ND-CP on credit policies for agricultural and rural development, the unit has fully and promptly implemented credit policies and programs for people in the area. Currently, there are 87 loan groups with 1,423 members, and outstanding loans reaching 112 billion VND.

In 2019, Ms. Doan Thi Thoa (Tan Giang Hamlet, Tuan Giao Town, Tuan Giao District) received a loan of 300 million VND from Agribank Tuan Giao branch to invest in a macadamia nut processing line. In 2022, the bank further facilitated a 200 million VND loan for Ms. Thoa to expand her production scale, including: two macadamia nut storage warehouses, investment in additional machinery and technology for canning and packaging, and investment in building a product brand. To date, Ms. Thoa's macadamia processing facility consumes over 40 tons of macadamia nuts per year and sells over 20 tons of canned dried nuts to the market. With a selling price of 270,000 VND/kg of finished macadamia nuts, Ms. Thoa's facility achieves a revenue of over 5.4 billion VND per macadamia harvest. Ms. Doan Thi Thoa stated: "Throughout its operation, the facility has always received the support of Agribank Tuan Giao branch." When businesses need loans, the bank always facilitates all stages, from appraisal and application review to loan disbursement.

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