Accelerating disbursement of 30 trillion VND credit package for forestry and fisheries

Agricultural, forestry and fishery exports in the first three months of the year are estimated to have increased by more than 21% over the same period last year. Many banks expect the VND30 trillion credit package to be fully disbursed soon.

In addition to general loan packages, the banking industry also has a number of specific credit policies, which have been effective. For example, the VND 15,000 billion loan package for forestry and fishery products in 2023 has been 100% disbursed because it meets the market's needs. This year, the scale of this package has doubled to VND 30,000 billion and not only stops at 4 state-owned banks, but many more commercial banks have registered.

The wooden slats are used to produce large plywood panels, almost all of which have been sold by the company, the company estimates that this quarter's output increased by about 30% compared to the same period last year.

With increasing orders, businesses need about 3-5 billion VND in working capital each month to purchase wood materials for production. They are given a yearly limit by the bank, and disburse immediately when needed.

"If interest rates are lowered, we can buy more raw materials and receive more orders, bringing economic efficiency to the business as well as ensuring social security and paying bank debts on time," said Mr. Pham Quang Hung - Member of the Board of Members of Hung Bich Doan Hung Company Limited.

Wooden chopsticks businesses also have orders until the end of the second quarter, 80% of wooden chopsticks are exported to Japan. This year, they have been notified by the bank to reduce interest rates further.

"There are some debts that are reduced by 2-2.5% compared to last year, which greatly supports businesses' costs, thereby helping businesses maintain production," informed Mr. Nguyen Van Thai - Director of Thai Hoang Company Limited.

With its strength in agricultural and rural lending, Agribank has nearly tripled its forestry and fishery lending this year. Of the total VND30,000 billion package, they have allocated VND8,000 billion in preferential capital for this sector.

"For the wood industry, we have a support policy for businesses, with interest rates generally 1-2% lower than the average lending rate. We lend to businesses from purchasing input products to medium-term loans to invest in machinery and equipment," said Mr. Nguyen Thanh Tung - Deputy Director of Agribank, Doan Hung District Branch, Phu Tho .

According to data from the Ministry of Agriculture and Rural Development, agricultural, forestry and fishery exports in the first three months of this year are estimated to have increased by more than 21% over the same period last year. Therefore, many banks expect the VND30,000 billion credit package to be fully disbursed soon.

Also in the newly issued telegram, the Prime Minister also requested the State Bank to immediately study the construction and provision of a credit package for social housing buyers with a term of up to 15 years, which is 3 times longer than the term of the 120,000 billion VND package. The goal is to help low-income people have the opportunity and motivation to buy a house or facilitate renting or leasing.

According to VTV

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