Credit actively supports forestry and fisheries

Vietnam's export of forestry and fishery products in 2024 is forecast to reach 61 billion USD, according to the Ministry of Agriculture and Rural Development. In the first 9 months of 2024, the agricultural sector's trade surplus reached 13.9 billion USD, accounting for 67% of the whole economy.

The forestry and fishery sector has always been a lifeline for the economy when the economy is in difficulty. The Government has also identified this as a key priority development sector, so it has introduced policies to support businesses and people in production and business. For example, with the current monetary policy of the State Bank, it also establishes a short-term lending interest rate policy in Vietnamese Dong of 4.5%/year for 5 priority sectors, including rural agriculture, export, small and medium enterprises, the forestry and fishery sector is all in this priority category.

To support businesses and people in the field of aquaculture, cultivation and processing of aquatic products, the State Bank of Vietnam has requested commercial banks to participate in a credit program for lending to the forestry and aquatic products sector with interest rates 1% - 2% lower than market interest rates. In early 2024, a credit package of 15,000 billion VND was established, and by September this year, the disbursement exceeded the target by up to 36,000 billion VND. Commercial banks have just increased this credit package to 60,000 billion VND to continue lending in the following period.

Southern provinces and cities that make important contributions to the export of forestry and aquatic products have the ability to absorb bank capital from the 60,000 billion VND package, increasing very quickly.

Mr. Do Trong Thao, Acting Director of the State Bank of Vietnam, Khanh Hoa Province Branch, said that as of the end of September 2024, outstanding loans for the forestry and fishery sector in the area reached VND 14,596 billion, of which outstanding loans from the VND 60,000 billion credit package supporting the forestry and fishery sector reached VND 4,274 billion.

Meanwhile, Mr. Tran Thien Tri, Deputy Director of the State Bank of Vietnam, Ba Ria - Vung Tau branch, said that by the end of September 2024, the disbursement turnover from the forestry and fishery credit package reached VND 4,863 billion with outstanding loans of VND 1,529 billion. Of which, the fisheries sector had disbursement turnover of VND 4,141 billion, outstanding loans of VND 1,437 billion; the forestry sector had disbursement turnover of VND 722 billion, with outstanding loans of VND 92 billion.

In Can Tho, credit institutions committed to lending under the aquaculture support package up to 3,700 billion VND with outstanding loans of 136 billion VND. In Ho Chi Minh City, the disbursement turnover of this credit package reached over 3,020 billion VND, with 2,021 customers accessing capital from the forestry and aquaculture credit package. According to the State Bank of Vietnam, Ho Chi Minh City branch, the forestry and aquaculture credit package has been very effective in production and business. A large number of people in coastal communes of Can Gio who raise aquatic products have timely capital to sow seeds, buy aquatic feed, promote agricultural production development, contributing to supporting people's lives.

Experts say that lending to the forestry and fishery sector is also of interest to commercial banks because the export of aquatic products has grown quite well in recent times. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in September 2024, aquatic product exports reached 866 million USD, up 6.4% compared to September 2023. In the first 9 months of 2024, aquatic product exports reached 7.16 billion USD, up 8.5% over the same period last year. In addition, aquatic products are essential consumer goods in life, if the economy is difficult, demand will only decrease slightly but not stop completely.

However, to further increase the source of capital for forestry and fishery loans, the coordination of associations and the business community is needed. Ms. Nguyen Duc Thach Diem, General Director of Sacombank, said that the role of industry associations is very important for banks to participate in the value chain of aquaculture production and processing of export goods. From there, the bank contributes to maintaining its position in export growth and increasing trade surplus in priority development sectors.

Accordingly, there are currently banks lending at lower interest rates than mobilization rates, such as Agribank, which has a loan product for the import and export of agricultural products with an interest rate of 2.6%/year. Techcombank lends capital and is providing international payment products for importers and exporters in the last 3 months of the year, contributing to promoting exports to the finish line... Enterprises wishing to access low-interest capital sources can use the bank's closed payment, guarantee, cash flow management services...

Source: https://thoibaonganhang.vn/tin-dung-ho-tro-tich-cuc-cho-lam-thuy-san-157253.html