Green credit promotes clean agricultural economy

With the mission of serving "Tam Nong", in recent times, the Bank for Agriculture and Rural Development, Son La Branch (Agribank Son La) has focused on green credit growth, contributing to promoting the restructuring of the agricultural sector, increasing income and improving the quality of life for people.

Organic fruit tree growing model of Mr. Giang Van Cuong, sub-zone 2, Mai Son commune.

In 2021, realizing the increasing demand for clean and organic agricultural products, Mr. Giang Van Cuong, Sub-area 2, Mai Son Commune, decided to renovate 12 hectares of hilly land to grow dragon fruit, custard apples and build livestock barns. After being introduced to the green credit package by Agribank officials, he boldly borrowed more than 1 billion VND to invest. After 4 years, the custard apple and dragon fruit areas were harvested; the products met VietGAP standards and were contracted by supermarkets and clean agricultural product stores.

Mr. Cuong shared: Without preferential capital and dedicated guidance from the bank, it would be difficult for me to change my production model. Now I have a stable income and peace of mind because the products are clean and safe.

Not only supporting individuals, Agribank Son La also accompanies many businesses and cooperatives in clean agricultural production. A typical example is Minh Thuy Chieng Chung Livestock Joint Stock Company, which has been committed to a loan of VND 275 billion to invest in wastewater treatment technology, automatic cooling systems, ozone and disinfection systems, and ensure biosafety when entering and exiting livestock farms.

Prioritizing the agricultural sector, since 2016, Agribank has implemented a loan program to encourage the development of high-tech agriculture and clean agriculture with a minimum capital scale of VND 50,000 billion for businesses, cooperatives, and farm owners participating in large-scale, safe production chains. In 2024, Agribank will continue to launch a "green credit" loan program exclusively for individual customers, with a scale of VND 10,000 billion, with preferential interest rates from only 3.5%/year. This capital source supports projects in the green sector, such as: organic agriculture, clean energy, and environmentally friendly products.

Mr. Ha Dinh Mui, Deputy Director of Agribank Son La, informed: Implementing Agribank's credit programs, the unit has proactively coordinated with local Party committees, authorities, and mass organizations to widely disseminate to all people about credit policies serving agriculture and rural areas; focusing on credit investment for households developing agricultural economy and livestock farming in the direction of concentrated farms.

As of July 31, the total outstanding loans of Agribank Son La reached over VND17,585 billion, of which the outstanding loans for the agricultural sector accounted for about VND12,000 billion. Particularly for the green credit loan package, the unit has committed to providing credit to eligible customers of over VND500 billion and has disbursed over VND300 billion.

Agribank Son La officers inspect the use of loan capital at Manh Thang Company Limited.

The potential for green credit development is still very large. However, compared to conventional loans, green credit requires customers to meet more stringent criteria. Specifically, in cultivation and animal husbandry, products must have VietGAP or organic certification; processing and primary processing facilities must meet ISO certification or equivalent standards. This is a significant challenge for mountainous provinces such as Son La, where the production level and economic conditions of a segment of the population are still limited. Many households want to borrow but do not meet the requirements for clean production certification.

Mr. Ha Dinh Mui added: Not all households are eligible to access capital. Therefore, credit officers must accompany customers right from the stage of consulting on model selection, guiding the implementation of clean production criteria, and even connecting with certification units. Bank officers also need to have a firm grasp of green credit regulations to provide effective support.

In addition to technical requirements, some production households also face difficulties in preparing business plans and financial estimates to submit to banks. Faced with this reality, Agribank Son La proactively coordinated with the Farmers' Association, the Women's Union and localities to organize training courses, provide guidance on preparing loan plans, and disseminate clean production standards.

Customers come to transact at Agribank Son La.

In 2025, Agribank Son La aims to grow by 13%, prioritizing organic agricultural projects, medicinal plant cultivation, renewable energy production and industries with positive impacts on the environment; continuing to promote digitalization of services, shortening application review time, helping capital reach customers faster. Along with that, coordinating with departments, branches and local authorities to support farmers in completing environmental criteria, expanding production and consumption linkages to increase product value.

With the support of Agribank Son La and the people's determination to innovate, green credit will continue to be an important resource to promote clean agricultural production, apply high technology, contribute to environmental protection, improve people's lives and create a foundation for sustainable development of Son La agriculture.

Source: https://baosonla.vn/kinh-te/tin-dung-xanh-thuc-day-kinh-te-nong-nghiep-sach-lBFQXUlNg.html