Expanding credit sources for investment in agriculture and rural areas

Credit capital supported by banks for investment in agricultural and rural development will help farmers escape poverty and improve people's lives. To further promote credit for agriculture and rural areas, commercial banks and credit institutions focus on simplifying loan procedures for customers; strengthening inspection and supervision of agricultural and rural loans, ensuring loans are for the right purpose, safe and effective, contributing to promoting credit growth in rural areas.

Implementing Resolution No. 15-NQ/TU, dated September 15, 2021 of the Ha Nam Provincial Party Committee on promoting the restructuring of the agricultural sector, developing the rural economy associated with building sustainable new rural areas, advanced new rural areas, and model new rural areas of Ha Nam province in the period of 2021-2025, with a vision to 2030, credit institutions in the province have focused on investing in customers who are households and businesses to borrow capital to develop livestock, crop cultivation, clean agricultural production, farm economy, and household economy. Up to this point, the total outstanding credit balance for investment in the agricultural and rural sectors in the province has reached nearly 30 trillion VND, in which credit institutions have closely followed the specialized Resolution of the Provincial Party Committee to disburse thousands of billions of VND to customers borrowing to restructure the agricultural sector.

Many customers have borrowed capital to invest in raising dairy cows, beef cattle, pigs, poultry, etc. on a large scale, bringing high economic efficiency, contributing to promoting the growth of the agricultural sector. Specifically, the Ha Nam Provincial Branch of the Vietnam Bank for Social Policies (VBSP) has disbursed capital to 100% of communes, wards and towns across the province. By the end of December 2024, the total outstanding debt in the area reached more than VND 3,529 billion, an increase of VND 328 billion compared to the beginning of the year, in which the investment capital is mainly in the fields of agriculture, rural areas and household economy. Of the above total outstanding debt, outstanding credit for production and business needs, creating livelihoods and jobs reached more than VND 2,640 billion, accounting for 71.38% of the total outstanding debt; outstanding policy credit for daily life reached more than VND 888 billion, accounting for more than 28% of the total outstanding debt.

Mr. Tran Quoc Hoan, Deputy Director of the Ha Nam Provincial Social Policy Bank Branch, said: In order to promptly disburse social policy credit capital to beneficiaries under credit programs, in the past time, the Provincial Social Policy Bank Branch has closely followed the direction of the Provincial Party Committee, the Provincial People's Committee, and the system, closely coordinated with local Party committees and authorities to promptly grasp the loan needs of the people. At the same time, directed the district-level Social Policy Bank transaction offices to coordinate with communes, towns, and mass organizations to organize propaganda to all savings and loan groups (S&L) in the area, focusing on guiding people and households eligible for the capital to complete loan procedures. Through the S&L, many households have quickly accessed capital from the Social Policy Bank to invest in household economic development, renovate and upgrade their houses; Animal husbandry, farming... help improve family economy, actively contribute to poverty reduction and new rural construction.

Credit officers of Agribank Ha Nam II Branch guide customers through loan procedures.

In addition to the social policy credit capital in the agricultural and rural areas, the credit capital being invested for customers to borrow has reached more than 20 trillion VND. Typically, the system of branches of the Bank for Agriculture and Rural Development (Agribank) in the province is disbursing nearly 20 trillion VND to customers in the agricultural and rural areas. The credit source invested in rural areas has brought about clear results when banks have introduced specialized products suitable for the needs of each customer group. Credit institutions have built and deployed credit products suitable for farmers and the characteristics of agricultural production, livestock, cultivation, and development of secondary industries; promptly deployed solutions to overcome difficulties, providing convenient products applying new technologies suitable for the needs of people and businesses in rural areas.

Mr. Hoang Xuan Hoi, Deputy Director of Agribank Ha Nam Branch, said: Participating in restructuring the agricultural sector, Agribank Ha Nam Branch has focused on investing in customers who are households and businesses to borrow capital to develop livestock, cultivation, clean agricultural production, and farm economy. Up to this point, the branch's total outstanding credit balance has reached more than 10 trillion VND; of which, more than 80% of the investment capital is for loans to the agricultural, farmer, and rural sectors. The branch has also disbursed thousands of billions of VND to customers borrowing to restructure the agricultural sector. Many customers in Duy Tien and Kim Bang towns have borrowed capital to invest in raising dairy cows, beef cattle, pigs, poultry, etc. on a large scale, bringing high economic efficiency, contributing to promoting the growth of the agricultural sector. In 2025, Agribank Ha Nam Branch will continue to review each customer, closely follow the production and business plans of enterprises and households, and promptly disburse loans according to plan.

In the coming time, implementing the direction of the State Bank, commercial banks in the province will continue to direct credit institutions to improve the efficiency of appraisal and assessment of customers' creditworthiness to increase the ability to lend to agricultural enterprises; simplify and abolish inappropriate administrative procedures, cut costs, create conditions for enterprises and people to access bank credit capital to serve production and business activities effectively; deploy modern banking products and services to rural areas such as loan guarantees, opening letters of credit, collection, etc. to increase access to capital, connecting farmers with enterprises and banks. The banking sector actively coordinates with local authorities to implement the bank-enterprise connection program, conduct direct dialogues with enterprises, learn about difficulties, and thereby have specific solutions to remove difficulties for enterprises, including agricultural enterprises; promptly direct credit institutions to implement measures to support and remove difficulties for customers with loans damaged by natural disasters, such as: restructuring debt repayment terms, exempting and reducing loan interest rates, continuing to provide new loans to restore production...

Tran Thoan

Source: https://baohanam.com.vn/kinh-te/tai-chinh-ngan-hang/mo-rong-nguon-von-tin-dung-dau-tu-cho-linh-vuc-nong-nghiep-nong-thon-144391.html