Expanding investment capital in agriculture and rural areas

Identifying agriculture and rural areas as one of the priority areas for capital investment, the province has directed departments, branches and credit institutions in the area to implement many synchronous solutions to expand support programs and prioritize credit investment for this area. Thereby, it not only promotes sustainable debt growth and household economic development but also contributes significantly to the process of building increasingly innovative, modern and civilized rural areas.

Thanks to a loan from Agribank Binh Xuyen Branch, Ms. Nguyen Thi Ha's family in Thieu Khanh village, Huong Son commune (Binh Xuyen) has expanded their livestock farming model and become rich. Photo by Nguyen Luong

To concretize the Party's guidelines and the State's policies and laws, the province has issued many mechanisms and policies, creating a favorable environment for economic sectors to invest in the agricultural and rural sectors.

Every year, the province develops a plan to allocate public investment capital to projects in this field. At the same time, it mobilizes many investment resources such as official development assistance (ODA), foreign preferential loans, microfinance, bank credit, etc.

In addition, the State Bank of Region 4 has directed commercial banks and credit institutions in the province to closely follow the direction of the State Bank of Vietnam, the province's development orientation focusing on providing credit to the agricultural and rural sectors, managing interest rates, actively implementing preferential credit programs with reduced interest rates for both short-term and medium-term...

The provincial branch of the Bank for Social Policies always accompanies and supports the poor, near-poor and policy beneficiaries to access preferential loans, contributing to stabilizing their lives and escaping poverty. Photo: Ngoc Lan

By the end of April 2025, outstanding credit for agricultural and rural development in the whole province reached more than 30 trillion VND, with preferential lending interest rates lower than in other fields, creating favorable conditions for people and businesses to access capital.

In the period of 2021 - 2025, the total medium-term public investment capital from the provincial budget under the management of the Department of Agriculture and Environment will reach nearly 1,300 billion VND, expected to be allocated to areas such as cultivation, livestock, aquaculture, forestry, irrigation, dykes, etc.

In addition, the province is implementing two projects in the agricultural sector using aid capital from foreign non-governmental organizations. This shows that Vinh Phuc not only relies on public investment resources but also creates a favorable environment to attract capital from other economic sectors, contributing to diversifying resources and improving investment efficiency in this sector.

Thanks to that, the province's agricultural sector has continuously grown over the years, production has developed comprehensively and in the right direction, and the structure of crops and livestock has shifted positively. A series of social infrastructure and technical infrastructure projects have been invested, making the countryside in the province increasingly innovative, modern, and civilized...

With the proportion of loans to the agricultural, rural and farmer sectors always at 65 - 70% of total outstanding loans, on that basis, Agribank Vinh Phuc Branch regularly adjusts short-term loan balance to a maximum of no more than 10%/year and medium-term loan balance to no more than 11%/year, while reducing lending interest rates for businesses by 1.5 - 2.5%/year depending on the term; making efforts to diversify capital channels, bringing credit capital to the hands of the people.

The family of Mr. Nguyen Duc Quyet, Dai Lu village, Dong Ich commune (Lap Thach) invested billions of dong to build an agricultural production model following VietGAP standards. Photo: Ngoc Lan

By the end of April 2025, the total outstanding loans to the economy of Agribank Vinh Phuc Branch reached nearly 17,500 billion VND, contributing to creating conditions for people to increase income and reduce poverty.

Agribank Vinh Phuc Branch representative said: Implementing the Government's policy on improving access to banking services that are suitable to the needs and of good quality, especially for people in rural, remote and isolated areas, Agribank Vinh Phuc Branch continues to promote propaganda and dissemination of credit policies to people, flexibly deploy preferential credit packages, diversify capital channels, facilitate administrative procedures for loans for customers... Thereby contributing to improving people's lives, gradually changing the face of the countryside towards civilization and modernity.

Consistent with the goal of modernizing agriculture and rural areas and expanding investment capital for this sector, the province continues to mobilize the participation of the entire political system in implementing and proposing investment mechanisms and policies for agriculture and rural areas. Strengthening the application of science and technology in production, developing clean agriculture, organic agriculture and focusing on building and expanding large-scale agricultural production areas associated with the province's key products.

Develop forms of cooperation, production and consumption linkages along the value chain. Continue to mobilize investment sources in the agricultural sector such as public investment capital, ODA, FDI, etc. and improve the efficiency of using existing capital. Promote the improvement of the investment environment, simplify administrative procedures and implement timely support policies to attract businesses to invest in agriculture, especially in areas with potential and advantages of the province.

Credit institutions are required to continue to develop and deploy many credit products suitable for farmers and the characteristics of agricultural production; improve processes, procedures, and loan approval time; promptly support and remove difficulties for customers borrowing capital, such as restructuring debt repayment terms, exempting and reducing loan interest rates, continuing to provide new loans to restore production, etc.

Ngoc Lan

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/127958/Mo-rong-nguon-von-dau-tu-linh-vuc-nong-nghiep-nong-thon