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VN Central Bank pledges to offer $4.39b for hi-tech agriculture

VN Central Bank pledges to offer $4.39b for hi-tech agriculture

HANOI: The State Bank of Vietnam (SBV) has pledged to provide a VND300 trillion (US$4.39 billion) credit package for hi-tech agriculture with suitable interest rate after Prime Minister Nguyen Xuan Phuc instructed the bank and relevant ministries to develop the field, head of SBV Credit Department Nguyen Quoc Hung has told Sai Gon Giai Phong Newspaper.

Under the package, commercial banks will provide loans at preferential interest rate, which might be lower than 7 percent, without interest assistance from the state budget.

SBV is now working with the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology to review norms determining hi-tech applied projects.

Afterwards the Ministry of Agriculture and Rural Development will give specific guides on hi-tech farming norms. At present those investing in hi-tech farming can get loans at the lowest interest rate of 7 percent under the Government’s Decree 55.

Talking to Sai Gon Giai Phong, leaders of commercial banks said they were willing to give preferential loans for hi-tech agriculture. Since 2016, Agribank has launched a VND50 trillion (US$2.2 billion) package with interest rate 0.5-1.5 percent lower than normal.

LienVietPostBank said it has decided to offer a VND10 trillion ($439.2 million) package with low interest rate in response to the Prime Minister’s instruction while waiting for relevant ministries to give norms on hi-tech agricultural projects.

Interest rate will be 0.5-1 percent lower than market rate and loan time will depend on each type of plant, said the bank’s standing deputy chairman Nguyen Duc Huong.

The bank has prepared capital for macadamia development, replanting of coffee plants and growing of clean vegetables in the Central Highlands.