Vietnam: Credit policies for incentive to the hi-tech agricultural production

Specifically, according to Clause 8 Article 1 of Decree No. 116/2018/ND-CP of Vietnam’s Government, which amends Clause 1 Article 15 and adds Clause 2a and Clause 4 to Article 15 of Decree No. 55/2015/ND-CP, credit policies for incentive to the hi-tech agricultural production are specified as follows:

- Customers having business projects or business plans in hi-tech agricultural zones or hi-tech agricultural areas may apply to credit institutions for unsecured loans of up to 70% of the value of such project or plan.

- Hi-tech agricultural enterprises shall be entitled to apply for unsecured loans considered by credit institutions at the maximum rate of a loan equal to 80% compared with the value of the production and business project or plan in which high technologies are applied during the agricultural production process.

- Enterprises not issued with a hi-tech agribusiness certificate but having hi-tech agribusiness plans or projects outside the hi-tech agricultural zones or hi-tech agricultural areas may apply for unsecured loans of up to 70% of the value of such project or plan.

- In case the hi-tech agricultural enterprise is faced with risks incurred due to force majeure, their loan debts shall be treated in the same manner as loan debts incurred by the main organization carrying out value chain collaboration as stipulated in Clause 3 Article 14 of Decree No. 55/2015/ND-CP of Vietnam’s Government.

- The credit institution shall be entitled to use assets derived from loans of the hi-tech agribusiness plan/project and other assets to secure loans granted to their customers as per regulations.

View more amendments and supplements at: Decree No. 116/2018/ND-CP of Vietnam’s Government takes effect from October 25, 2018.

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