Promotion of loans used for purchase and trade of rice and paddy in the Mekong Delta Region of Vietnam

Promotion of loans used for purchase and trade of rice and paddy in the Mekong Delta Region of Vietnam

Under Directive 10/CT-TTg dated March 2, 2024, by the Prime Minister of Vietnam on the promotion of sustainable, transparent, and efficient rice and paddy production, trading, and export in the new context; to promptly meet the credit capital needs for purchasing rice and exporting rice, especially for the purchase of Winter-Spring 2023-2024 crop commercial rice in the provinces of the Mekong Delta Region of Vietnam, the State Bank of Vietnam requests that SBV branches in the provinces and municipalities within the Mekong Delta Region of Vietnam:

- Direct branches of commercial banks in the locality to:

(i) Proactively balance capital sources to promptly meet the capital needs of residents and businesses involved in the production, processing, purchasing, temporary storage, and exporting of rice and paddy, especially for the purchase of Winter-Spring 2023-2024 crop commercial rice;

(ii) Ensure that residents and businesses with effective production and business plans, meeting legal requirements, can access loans without difficulty;

(iii) Create favorable conditions for residents and businesses involved in rice and paddy production and trading to access preferential interest rate credit sources according to the bank's programs;

(iv) Shorten the loan approval period to ensure prompt support, considering the seasonal nature of production, processing, purchasing, temporary storage, and exporting of rice and paddy;

(v) Enhance the efficiency of assessing and evaluating customer creditworthiness to increase the ability to lend without collateral based on cash flow management;

(vi) Focus on lending to rice and paddy value chain models from production to purchasing, processing, storage, and product consumption; lend to serve the Scheme “Sustainable Development of One Million Hectares of High-Quality and Low-Emission Rice Dedicated to Green Growth in the Mekong Delta Region of Vietnam by 2030” according to Decision 1490/QD-TTg dated November 27, 2023, by the Prime Minister of Vietnam.

- Coordinate with departments and agencies in the area to strengthen the implementation of the Bank-Business Connection Program to promptly address difficulties and create favorable conditions for traders, businesses, and individuals involved in rice and paddy production and trading to access credit sources.

- Closely monitor the market developments and the lending situation for the rice and paddy sector of commercial banks in the area to promptly report to the Provincial or municipalPeople's Committee and the Governor of SBV solutions to remove difficulties encountered during implementation (if any).

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

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