Credit capital contributes to agricultural and rural development - Lang Son Newspaper and Radio and Television Station

People of Yen Son commune, Huu Lung district use preferential loans from the Vietnam Bank for Social Policies to develop a fruit tree growing model.

In recent times, the Government has issued many mechanisms and policies to increase capital investment in agricultural and rural development, including investment through bank credit channels. Through credit capital, households, businesses and cooperatives in the province have invested capital to develop many effective production models, bringing in high income.

Timely capital disbursement

In recent years, many policies have been issued to remove capital difficulties for the "three rural" sector, such as: Resolution No. 26 dated August 5, 2008 of the Central Executive Committee on agriculture, farmers, and rural areas; Decree No. 41 dated April 12, 2010 of the Government , later replaced by Decree No. 55 dated June 9, 2015 and amended in 2018 by Decree 116 on credit policies for agricultural and rural development. These decrees provide detailed and specific credit support policies for the agricultural and rural sectors to encourage people to invest in development.

In order to effectively implement the Government's decrees on credit policies for agricultural and rural development, in recent years, the State Bank of Vietnam (SBV) Lang Son Branch (now SBV Region 5) has promptly disseminated the Government's policies and instructions to people and businesses. At meetings and conferences with credit institutions in the area, the SBV has always disseminated and directed banks to prioritize lending for loans in the agricultural and rural sectors.

In addition, the State Bank and banks also proactively coordinate with relevant units to enhance information and propaganda about credit products, new policies and guidelines to customers, especially customers in remote areas; implement administrative procedure reforms, promote digital transformation, non-cash payments, create favorable conditions for individuals and businesses in the area to access bank capital.

Vietnam Bank for Agriculture and Rural Development, Lang Son Branch (Agribank Lang Son) is a typical unit in lending activities in the agricultural and rural sector. Up to now, the total outstanding loans for agriculture and rural areas of Agribank Lang Son have reached VND 8,462 billion, an increase of VND 252 billion compared to 2024, with 17,835 households borrowing capital.

Mr. Nguyen Hong Duc, Director of Agribank Lang Son said: Over the years, Agribank Lang Son has always affirmed its leading role in investing in agricultural and rural development. The unit has always proactively improved processes, simplified loan procedures; enhanced appraisal capabilities to shorten loan processing time, creating the most favorable conditions for customers to access credit capital.

In addition, the branch also offers many convenient products and services to customers, especially in rural areas such as: mobile consulting teams to communes, rural agricultural overdraft loans with preferential interest rates... ensuring that households have capital to promptly implement production and business ideas.

Together with Agribank Lang Son, with the goal of sustainable development and "leaving no one behind", policy credit capital through the system of the Provincial Social Policy Bank (PPB) has contributed to creating a strong change in remote communes, thereby significantly improving the appearance of rural areas. Mr. Phan Anh Thang, Deputy Director of the Provincial PPB Branch, said: Currently, the bank is implementing 19 social policy credit programs, with a total outstanding loan balance of over VND 5,100 billion, with 90,104 borrowers. Thanks to this capital source, poor households and other policy beneficiaries in rural areas, especially ethnic minority and mountainous areas, have developed production and business, escaped poverty, and improved their material and spiritual lives.

Not only at the above 2 banks, in recent years, many banks in the province have been effectively deploying credit capital for the agricultural and rural sectors. Currently, the whole province has 16 level 1 credit institution branches, 12 level 2 branches, 57 transaction offices. From proactive implementation as well as measures to simplify lending procedures, it has contributed to unblocking credit capital for the agricultural and rural sectors. Up to now, outstanding loans for agricultural and rural development have reached more than 21,600 billion VND, accounting for 47.8% of the total outstanding loans of the whole province, with 109,087 customers with outstanding loans.

In particular, to promote agricultural and rural credit in Lang Son province, on December 10, 2019, the Provincial People's Council issued Resolution No. 08 and Resolution No. 15 dated July 17, 2021 on amending and supplementing a number of articles of Resolution 08 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. Implementing the credit interest rate support program under Resolution 08, up to now, the whole province has 1,260 projects supported with credit interest rates with outstanding loans of over 490 billion VND.

Up to now, outstanding loans for agricultural and rural development have reached more than 21,600 billion VND, accounting for 47.8% of the total outstanding loans of the whole province, with 109,087 customers with outstanding loans .

Helping rural people rise up

With close guidance from the State Bank and the proactiveness and positivity of banks in the province, credit capital from banks has been invested in all communes in the province. From credit capital, many households have invested in developing models such as: afforestation, fruit tree planting, animal husbandry, service business... bringing high economic efficiency.

For example, the family of Mr. Hoang Duc Nghiem, Na Ban village, Hong Thai commune, Binh Gia district - one of the typical households that have risen from credit capital. Mr. Nghiem shared: My family used to only farm, so the source of income was unstable. In 2022, thanks to the propaganda of Agribank Binh Gia staff about the bank's loan programs, my family applied for a loan under Resolution 08 with an amount of 200 million VND to raise fattened buffaloes and cows. To gain knowledge to apply in practice, every year, I proactively attend training courses on science transfer organized by the commune. Thanks to that, my family's buffaloes and cows have developed well, my family always maintains about 7 - 10 cows/batch, on average, my family sells about 200 buffaloes and cows to the market each year, bringing in an income of over 150 million VND.

As for the family of Ms. Vi ị Su, Bai Danh village, Yen Son commune, Huu Lung district, preferential capital from the VBSP has helped her family have a stable income, rising to become a well-off household in the commune. Ms. Su said: In previous years, my family's economic conditions were very difficult. In 2019, thanks to the advice and guidance of the Commune Women's Union, I boldly borrowed 50 million VND from the District VBSP Transaction Office to invest in planting and caring for custard apple trees. Since then, my family's custard apple acreage has grown well, with an average annual income of 200 million VND.

Bank credit capital has actively contributed to the economic restructuring of rural areas and the construction of new rural areas, helping people gradually increase their income and become rich.

Mr. Nong Xuan Tinh, Chairman of the People's Committee of Vu Son Commune, Bac Son District, said: Currently, the outstanding credit balance in the commune is over 44.9 billion VND, of which the outstanding credit balance at the Social Policy Bank is over 22 billion VND and Agribank is 22.9 billion VND. From this capital source, people in the commune have invested in developing models such as: livestock farming, afforestation, fruit tree planting, ornamental peach trees... Thereby, the income of people in the commune has gradually increased, the rate of poor households has decreased over the years. Specifically, currently, the average income per capita reaches 62 million VND/person/year, an increase of 11 million VND compared to 2023.

In the coming time, the State Bank will continue to direct banks to effectively implement the policies of the Government, Party committees and local authorities on the development and support of agriculture and rural areas. In particular, it will direct Agribank Lang Son and the provincial branch of the Vietnam Bank for Social Policies to play a key role together with the local banking system in promoting loans for agricultural and rural development, preferential credit policies, reducing lending interest rates, and increasing access to credit capital for households, businesses and cooperatives. At the same time, it will direct credit institution branches in the area to deploy solutions to expand credit, effectively implement credit policies to serve agricultural and rural development according to the Government's decrees and resolutions of the Provincial People's Council...

It can be affirmed that credit capital has truly become a driving force to help the province's agricultural economy develop strongly. Thereby, not only contributing to the modernization of production but also helping many households to become rich and improve their lives. Thereby, contributing to reducing the province's poverty rate by an average of 3% to 5% annually; by the end of 2024, the province's poverty rate will be 3.36%. At the same time, speeding up the construction progress new rural areas in the province. Up to now, the whole province has 106/175 communes meeting new rural standards, of which 27 communes have met advanced new rural standards; 10 communes have met model new rural standards./.

Source: https://baolangson.vn/von-tin-dung-gop-phan-phat-trien-nong-nghiep-nong-thon-5042246.html