Preferential credit: Motivation for forestry - Lang Son Newspaper and Radio and Television Station

Agribank Loc Binh staff guides people through loan procedures

On average, each year, the whole province plans to plant 9,000 hectares of new forests, of which the State's capital to support forest planting only meets about 15 - 20%. Therefore, preferential credit capital from local banks is very necessary for the people. From loan capital, especially preferential credit capital at the Provincial Branch of the Vietnam Bank for Social Policies (VBSP) and the Vietnam Bank for Agriculture and Rural Development, Lang Son Branch (Agribank Lang Son), has contributed to supporting many households to develop the forestry economy .

Accompanying people to develop forest economy

Currently, the total forest area in Lang Son is over 540 thousand hectares, the forest coverage rate is over 64%. On average, each year, the whole province plants over 9,000 hectares of new forest. In the province, concentrated production areas have been formed such as: pine growing areas in the districts of Loc Binh, Dinh Lap and Cao Loc; acacia and eucalyptus growing areas in the districts of Chi Lang, Huu Lung...; cinnamon growing areas in the districts of Binh Gia, Bac Son, Trang Dinh... To achieve that result, there is an important contribution from preferential loans from banks in the area.

Mr. Nguyen Hong Duc, Director of Agribank Lang Son said: Closely following the socio-economic development orientation of the province, including forestry development, in recent times, Agribank Lang Son has directed Agribank branches in districts, cities, and type II transaction offices to create maximum conditions for local people to access loans and develop forestry. In order to transfer capital to people, the bank has required credit officers to raise awareness, not to be afraid of difficulties, not to be afraid of hardships, and to take the responsibility to proactively coordinate with the authorities of communes, officers of relevant departments and offices of districts and cities to organize appraisal, consultation, and guidance for people on loan procedures in accordance with the law and the bank. Thanks to that initiative, up to now, the outstanding loans for agricultural and rural development at the branch have reached over VND 8,636 billion, of which the outstanding loans for the purpose of planting and caring for forests have reached over VND 938 billion.

At the provincial branch of the Vietnam Bank for Social Policies, in recent years, policy capital has helped poor households and other policy beneficiaries develop the forest economy. Mr. Phan Anh Thang, Deputy Director of the provincial branch of the Vietnam Bank for Social Policies, said: In order for capital to reach the right subjects, the branch has coordinated with socio-political organizations entrusted with propaganda to members and people about the bank's loan programs, and at the same time directed the transaction offices of the Vietnam Bank for Social Policies in the districts to assign credit officers in charge of the area to coordinate with the People's Committees of communes and towns to review and make a list of households with large areas of forest land, with potential but lacking investment capital to propagate and guide households to borrow capital. Up to now, people in the province are borrowing capital from the Vietnam Bank for Social Policies to plant and care for forests with an amount of over VND 2,800 billion (accounting for 40% of the total outstanding loans of the branch's loan programs). The loan capital has contributed to helping households plant and care for over 52,000 hectares of forest.

People of Chi Minh commune, Trang Dinh district take care of cinnamon forests with policy credit capital.

In addition, the provincial authorities and sectors have also paid attention and had many specific mechanisms and policies to support loans to help people develop production, including forestry development. Typically, Resolution No. 08 dated December 10, 2019 of the Provincial People's Council on specific policies to encourage investment, develop cooperation, link production and consumption of agricultural and rural products in the province for the period 2020 - 2025 (Resolution 08) and Resolution No. 15 dated July 17, 2021 of the Provincial People's Council amending and supplementing a number of articles of Resolution 08. Including a number of regulations on credit interest rate support for forestry tree planting projects for timber. To date, the outstanding loan balance supporting credit interest rates under Resolution 08 has reached 493 billion VND, with 1,340 projects.

In order for the loan capital to be effective, every year, banks closely coordinate with associations, unions, local Party committees and authorities to propagate and guide members and people in need of loans to prepare documents and have appropriate loan usage plans. In addition, credit officers in charge of the area of banks also coordinate to propagate, advise and guide people in need of loans at village and hamlet meetings. After the capital is disbursed, bank officers continue to coordinate with commune Party committees, authorities, associations and unions to guide borrowers to invest capital purposefully and effectively, and regularly check, supervise and urge debt collection and interest collection due from borrowers.

Rising from preferential credit capital

It can be seen that preferential credit capital from banks has helped thousands of households in the province invest in planting and caring for forests such as pine, cinnamon, acacia, eucalyptus, etc.

Mr. Tran The Dinh, Quyet Thang village, Doan Ket commune, Trang Dinh district is one of the typical households using preferential loans to develop afforestation. Mr. Dinh shared: Previously, my family's economic conditions were very difficult, my family had a large area of hills and forests but lacked capital to plant forests. In 2022, I was guided by the commune Farmers' Association staff and the district Social Policy Bank Transaction Office staff to prepare a loan application of 100 million VND to plant and take care of cinnamon forests. With the loan capital, my family planted 2 new hectares of cinnamon and bought fertilizer, hired people to clear and clean up previously planted cinnamon forests. Thanks to that, my family's cinnamon area has developed well, up to now, my family has about 10 hectares of cinnamon. On average, each year, my family exploits about 2 hectares, bringing in an income of over 300 million VND/year.

Similar to Mr. Dinh, in recent years, with the support of the bank, many households in remote areas in Dinh Lap district have had capital to invest and effectively exploit their family's hill and forest areas, rising to become rich on their homeland. A typical example is the family of Mr. Nong Van Mau, Ban Moi village, Binh Xa commune. Taking us to visit the vast eucalyptus forest, Mr. Mau could not hide his joy, he shared: In 2014, my family received a loan of over 50 million VND from Agribank Dinh Lap to take care of 20 hectares of pine forest. By 2020, about 50% of the forest area began to harvest resin. On average, each year, my family harvested from 3 to 4 tons of pine resin, bringing in an income of 100 to 120 million VND. In 2021, with the support and guidance of bank staff, I made a loan application of 700 million VND from the loan capital according to Resolution 08 of the Provincial People's Council to invest in planting 9 hectares of new eucalyptus. Up to now, the eucalyptus forest has grown and developed very well, and is expected to be exploited by the end of 2026.

Not only Mr. Dinh or Mr. Mau, in recent times, thousands of people in the province have had access to preferential capital from the provincial branch of the Vietnam Bank for Social Policies and Agribank Lang Son to develop the forestry economy. From the forest, many households have risen out of poverty and become rich legitimately with an average income of over 200 million VND/year (some households earn from 300 to more than 500 million VND/year from the forest economy).

Mr. Nong Minh Truong, Vice Chairman of the People's Committee of Hong Phong Commune, Binh Gia District, said: With a forestry land area of over 5,200 hectares (accounting for over 80% of the natural land area), Hong Phong Commune has many advantages to develop the forest economy. Exploiting that advantage, every year, the People's Committee of the Commune closely coordinates with the bank to guide people to borrow preferential loans to develop forest planting. Up to now, the outstanding loan balance at the District Social Policy Bank Transaction Office is over 30 billion VND, with 459 households borrowing. Thanks to the capital support, currently, people in the commune have planted over 1,100 hectares of forest (mainly acacia, fat, eucalyptus ...), from which many households have a good income, rising to get rich from the forest.

With the attention and support of local authorities, the accompaniment of banks and the active initiative of the people, the economic efficiency of forests has been helping many people in the province escape poverty and become rich legitimately. By the end of 2024, the multidimensional poverty rate of the whole province will be 11.36%, down 1.18% compared to 2023.

Some regulations on credit interest rate support for forestry tree planting projects according to Resolution No. 08/2019/NQ-HDND dated December 10, 2019 of the Provincial People's Council on specific policies to encourage investment, develop cooperation, link production and consumption of rural agricultural products in the province for the period 2020 - 2025:
- The interest support period is calculated from the date of disbursement of loan capital according to the credit contract with the bank, and is based on the term of the credit contract between the customer and the bank, but not exceeding 7 years for forestry tree planting projects for raw wood production; not exceeding 12 years for large timber tree planting projects.
- Loan limit with interest support: Maximum not exceeding 70% of total investment of the project.
- Projects with bank loan limit from 200 million VND or more.
- Use capital for the right purpose and repay principal and interest according to the agreement with the credit institution.
- The project proposed for support is a project that has not received interest rate support from other policies.

Source: https://baolangson.vn/bai-30-4-von-tin-dung-uu-dai-tiep-suc-nguoi-dan-phat-trien-lam-nghiep-5044439.html