The State Bank of Vietnam to request more loans be granted to serve rice trading​ in Vietnam

The State Bank of Vietnam to request more loans be granted to serve rice trading​ in Vietnam (Internet image) 

On March 8, 2024, the State Bank of Vietnam issued Official Dispatch 1764/NHNN-TD on increasing loans be granted to serve rice trading

The State Bank of Vietnam to request more loans be granted to serve rice trading in Vietnam 

Specifically, implementing Directive 10/CT-TTg dated March 2, 2024 of the Prime Minister on promoting sustainable, transparent, and effective production, business, and export of rice in the new situation; promptly meeting the need for credit capital to serve rice purchasing and rice export, especially purchasing commodity rice in the Winter-Spring crop of 2023-2024 in the provinces of the Mekong Delta region, the State Bank of Vietnam (SBV) requests commercial banks and SBV branches in provinces and cities in the Mekong Delta region to implement the following contents:

(1) For commercial banks:

- Proactively balance capital sources, promptly meet the loan needs of people and businesses producing, processing, purchasing, temporarily storing, and exporting rice, especially purchasing commodity rice in the Winter-Spring crop of 2023-2024 in provinces and cities in the Mekong Delta region. Do not allow a situation where people and businesses have effective production and business plans that fully meet legal regulations but cannot access loans.

- Create favorable conditions for people and businesses producing and trading rice to access credit capital with preferential interest rates according to bank programs. Promote reform, simplify internal processes and procedures, shorten loan approval time, ensure timeliness, and support seasonality in production, processing, purchasing, temporary storage, and export of rice; diversify appropriate types of credit products; Improve the efficiency of appraisal and customer credit rating to enhance the ability to lend without collateral on the basis of cash flow management.

- Continue to promote the implementation of credit policies to serve agricultural and rural development according to Decree 55/2015/ND-CP, Decree 116/2018/ND-CP, Circular 10/2015/TT-NHNN, and Circular 25/2018/TT-NHNN, which focus on lending to rice chain models from production to purchasing, processing, preservation, and product consumption; loans to serve the Project "Sustainable development of one million hectares specializing in high-quality rice cultivation and low emissions associated with green growth in the Mekong Delta until 2030"
according to Decision 1490/QD-TTg dated November 27, 2023.

- Strengthen Bank-Enterprise connection activities to have timely solutions to overcome difficulties (if any); Coordinate with the Vietnam Food Association and the Vietnam Rice Industry Association to inform banking industry credit policies for member businesses to know and participate when needed.

- Report to the State Bank, relevant ministries, and branches on difficulties and problems beyond their authority (if any); suggestions and recommendations during the implementation process.

(2) For SBV branches in provinces and cities in the Mekong Delta region:

- Direct commercial bank branches in the area:

(i) Proactively balance capital sources, promptly meet the loan needs of people and businesses producing, processing, purchasing, temporarily storing, and exporting rice and wheat, especially purchasing commodity rice in the Winter-Spring crop of 2023-2024;

(ii) Do not allow a situation where people and businesses have effective production and business plans that fully meet legal regulations but cannot access loans;

(ii) Create favorable conditions for people and businesses producing and trading rice to access credit capital with preferential interest rates according to bank programs;

(iv) Shorten loan approval time, ensure timeliness, and support seasonality in production, processing, purchasing, temporary storage, and export of rice;

(v) Improve the efficiency of appraisal and customer credit rating to enhance the ability to lend without collateral on the basis of cash flow management;

(vi) Focus on lending to rice and rice chain models from production to purchasing, processing, preservation, and product consumption; loans to serve the Project "Sustainable development of one million hectares specializing in high-quality rice cultivation and low emissions associated with green growth in the Mekong Delta until 2030" according to Decision 1490/QD-TTg dated November 27, 2023.

- Coordinate with departments and agencies in the area to strengthen the implementation of the Bank-Enterprise Connection Program in order to promptly remove difficulties and obstacles and create favorable conditions for traders, businesses, rice producers, and traders in accessing credit capital.

- Closely follow developments, market situation, and lending to the rice industry from commercial banks in the area to promptly report to the People's Committees of provinces and cities and the Governor of the State Bank on solutions to remove difficulties and obstacles during the implementation process (if any).

More details can be found in Official Dispatch 1764/NHNN-TD, dated March 8, 2024.

Ho Quoc Tuan

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