Banks prioritize capital for businesses to buy winter-spring rice

The Standing Deputy Governor of the State Bank of Vietnam affirmed that credit institutions will prioritize capital sources for businesses to borrow money to purchase winter-spring rice. In the long term, banks will provide loans along the rice value chain such as the 1 million hectare rice project.

Overview of the conference chaired by the State Bank of Vietnam in Rach Gia City, Kien Giang Province - Photo: BUU DAU

On March 13, the State Bank of Vietnam held a conference to promote bank credit, contributing to economic growth in region 15 (including 4 provinces of Kien Giang, An Giang, Dong Thap, Ca Mau). More than 100 enterprises and cooperatives of 4 provinces of Kien Giang, An Giang, Dong Thap, Ca Mau attended.

Businesses complain about high interest rates and difficulty in accessing them.

At the conference, Ms. Nguyen Thi Diem Thuy - Director of Hon Son One Member Co., Ltd., Kien Giang province - requested banks to stabilize interest rates for businesses and stabilize medium and long-term loan interest rates.

"If possible, it is recommended that the Provincial People's Committee establish a Business Support Center to provide full processes and procedures issued by the province, or credit packages to promptly support businesses in accessing capital," Ms. Thuy suggested.

The State Bank of Vietnam confirmed that it has directed banks to prioritize capital for businesses purchasing winter-spring rice - Photo: BUU DAU

Mr. Le Thanh Man, General Director of PetroVietnam Trading Joint Stock Company (Petimex) Dong Thap, said that businesses have difficulty accessing loans, especially at USD lending interest rates. Therefore, Petimex proposed to have more short-term credit packages with preferential interest rates (USD/VND) to support the unit in reducing financial costs, improving business performance and competitiveness.

"We request that banks adjust interest rates to be more reasonable, and at the same time provide incentives for temporary import and re-export capital sources. There should be flexible policies; support us to actively use loan capital sources, without being controlled by credit room. Because the price of gasoline fluctuates abnormally, the fluctuation range is very large, sometimes increasing or decreasing by over 15-20%," said Mr. Man.

Mr. Tran Truong Tan Tai, Chairman of the Sen Hong Rice Business Association (Dong Thap) - proposed that the State Bank provide preferential loans to businesses applying new technology in drying rice, or businesses investing in logistics to purchase rice from people for long-term storage.

"There needs to be a loan package with preferential interest rates for businesses developing the rice industry, or preferential interest rates for businesses to purchase rice from farmers in the current context. If this is met promptly, I believe rice exports will continue to be a big success," said Mr. Tai.

Prioritize capital for rice

At the conference, bank leaders reported on the lending situation, interest rates and capital allocation in region 15 including 4 provinces: An Giang, Dong Thap, Kien Giang and Ca Mau.

Directing at the conference, Mr. Dao Minh Tu - Standing Deputy Governor of the State Bank of Vietnam - affirmed that there were 8 opinions reflected at the conference including: high interest rates, need for preferential loans for each target group, loans with stable interest rates, difficult access to capital, loan procedures, small and medium enterprises having difficulty accessing capital, loan terms...

Mr. Dao Minh Tu - Deputy Governor of the State Bank of Vietnam - directed at the conference - Photo: BUU DAU

"The 1 million hectare rice project is a new customer. Rice is the strength of the Mekong Delta and Vietnam, so capital will focus on this field. Region 15 must determine what its strengths are, should it be rice or fish? I think we should focus on our strengths to unlock capital and focus on development," said Mr. Tu.

According to Mr. Tu, this year will focus on stimulating consumption and liquidity. Especially in countries that change policies. Therefore, banks must do something besides lending for production to promote consumer loans. This is considered a new lending method.

"The State Bank must regularly pay attention to the association to see their difficulties and provide timely support. Because this region has 4 provinces that mainly grow rice, aquatic products, and seafood, there will be more opportunities and potential," Mr. Tu added.

By the end of January 2025, Region 15 currently has 100 operating credit institutions. By the end of February, outstanding loans of credit institutions in Region 15 reached VND 450,994 billion, down 0.05% compared to the end of 2024.

Mr. Tran Van Phuoc was appointed as deputy director and acting director of State Bank region 15 - Photo: BUU DAU

At the conference, Permanent Deputy Governor Dao Minh Tu presented the decisions appointing Mr. Tran Van Phuoc, Director of the State Bank of Kien Giang province branch, to hold the position of Deputy Director of the State Bank of Region 15 and assigned the acting director, along with the deputy directors including: Mr. Vo Hong Nho, Mr. Vuong Tri Phong, Mr. Lieu Tri Tai.

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Source: https://tuoitre.vn/ngan-hang-uu-tien-nguon-von-cho-doanh-nghiep-mua-lua-dong-xuan-20250313190222693.htm