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Agribank accompanies farmers and businesses to bring Vietnamese agricultural products to the EU market

30/11/2020

Globalization, international economic integration and trade liberalization have been and are the development trends of the world economy in general and Vietnam in particular. On August 1, 2020, the Vietnam - European Union Free Trade Agreement (EVFTA) officially took effect.

In implementation of the Prime Minister's Decision No. 1201/QD-TTg dated August 6, 2020, the State Bank of Vietnam has issued a plan to implement the EVFTA Agreement of the State Bank of Vietnam with key groups of tasks and solutions related to ensuring monetary and financial stability, contributing to maintaining macroeconomic stability in the process of international integration; supplying capital for businesses in a timely and fully manner; strengthening banking - business connection to increase cooperation opportunities and take advantage of the positive aspects and benefits from the EVFTA Agreement.

Constantly completing the legal framework as well as regularly directing credit institutions to promote the implementation of credit programs for the agricultural and rural sectors in recent years of the banking industry has promptly met capital needs for agricultural production, especially high-tech agriculture, linkage in agricultural production, creating conditions for businesses to deeply participate in the global agricultural value chain.

As a bank with the mission of accompanying "Tam Nong", Agribank has always been a pioneer, key player in implementing policies on agricultural and rural investment, providing preferential loans for promoting the development of clean and high-tech agriculture. Agribank pioneered the implementation of a preferential credit program with a minimum amount of VND 50,000 billion for clean agricultural production. As of October 31, 2020, loan turnover reached nearly VND 30,000 billion, outstanding loans reached over VND 5,000 billion with nearly 4,000 customers. These are the efforts that have helped Agribank to be honored with the banking award for supporting investment in hi-tech agriculture for many years.

Continuously improving lending processes and methods, reducing costs to expand credit investment, Agribank's capital is a solid foundation for farmers and businesses who wish to develop agricultural production in general and high-tech agriculture in particular.

However, despite many favorable conditions for development, high-tech agricultural lending still faces many difficulties in terms of policies, land, and inadequate management of inputs, difficulties in research and technology transfer, difficulties in consumer markets and compliance of parties when participating in the value chain ...

In the coming time period, Agribank will maintain policies to meet the capital needs in agriculture and rural areas in general and clean agriculture, high-tech agriculture in particular; take the initiative to participate in developing and investing in production chains; collaborate more closely with ministries and sectors in providing loans to the agriculture and rural areas in general and clean agriculture, high-tech agriculture in particular; and promptly remove difficulties in implementation process.

The ratification of the EVFTA Agreement has opened up many opportunities, a driving force for maintaining and creating a basis for the rapid development of the Vietnamese economy and the agricultural sector. In order to make good use of the opportunities offered by EVFTA, it is required that Vietnamese businesses to clearly identify their partners and markets, continuously innovate, enhance the application of science and technology, and participate in global supply chains to be able to develop in a sustainable manner.  In the process, Agribank is committed to accompanying the business community and production households to develop a modern Vietnamese agriculture.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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