Hi-tech agriculture enterprises face difficulties in borrowing

Although the Government approved a credit package worth VND100 trillion (US$4.4 billion) early this year to develop high-tech agriculture, farmers and agricultural enterprises without consumption markets for their products have found it difficult to take out loans from banks, said the State Bank of Vietnam (SBV).

Nguyen Thi Hong, deputy governor of the central bank, said at a regular meeting of the Government early this month that banks would face risks when offering loans to individuals and enterprises involved in high-tech agriculture if outlets for farm produce are not secured. The reason is that households producing and trading in hi-tech agricultural products have little information about local and export markets.

Hi-tech agriculture development loans from banks have not been supported by the State budget. Thus, only individuals and enterprises with feasible business projects and stable consumption markets can borrow money.

To help enterprises sell their products, the Ministries of Industry-Trade and Agriculture-Rural Development have to assess and forecast the market demand for hi-tech farm produce, said the SBV.

Besides, the two ministries should implement trade promotion programs and help enterprises penetrate potential overseas markets.

The State Bank pledged to direct commercial banks to offer loans appropriately and provide additional capital to meet the demand of enterprises.

The Ministry of Agriculture and Rural Development on August 14 organized a hi-tech agriculture development conference in Lam Dong Province, one of the most effective hi-tech agriculture provinces in Vietnam.

Each year, the province fetches VND500 million from a hectare of vegetables and VND1.2 billion from a hectare of flowers.