Source: nongnghiep.vn
On May 7, the Institute of Policy and Strategy for Agricultural and Rural Development (IPSARD) in collaboration with the International Food Policy Research Institute (IFPRI) organized a seminar “The current situation of lending along the value chain in Vietnam”. Vietnam and some Southeast Asian countries”.
At the workshop, IFPRI representative, Dr. Alan de Brauw – Director of the Project “Lending along the agricultural value chain” shared that the project is implemented in two phases. Phase 1 focuses on developing reports for each country on the potential for developing relevant policies. Phase 2 will pilot the implementation of value chain lending in Vietnam and Indonesia.
Dr. Alan de Brauw – Project Director “Lending along the agricultural value chain”. Image: HT.
Mr. Alan de Brauw said that currently, in order to produce agricultural products, especially to meet market demand and increase competitiveness, farmers, cooperatives as well as businesses need investment capital. However, existing traditional credit models, especially credit models based on collateral, are no longer suitable for farmers, when property ownership conditions are still limited.
Dr. Truong Thi Thu Trang – Deputy Director of the Institute of Policy and Strategy for Agricultural and Rural Development emphasized that agricultural value chain credit is a trend to develop modern agriculture, thereby helping to address the needs of agriculture and rural development. financial needs of all actors participating in the chain from production, processing and distribution. Through chain credit, all participating actors must comply with commitments for the common good to achieve the set goals.
Dr. Truong Thi Thu Trang spoke at the conference “The current situation of value chain lending in Vietnam and some Southeast Asian countries”. Image: HT.
According to Dr. Truong Thi Thu Trang, in recent times, although many credit support policies have been implemented, farmers’ access to bank capital still faces many difficulties and challenges. Credit institutions also face many risks when investing credit in agricultural and rural areas. In particular, small farmers in Vietnam and developing countries are facing many limitations in production development, including difficulty accessing credit due to many different reasons.
Researching the relationship between value chain finance and sustainable agricultural development in Vietnam, Dr. Nguyen Tien Dinh – Head of the Farm and Cooperative Economics Department, Department of Cooperative Economics and Rural Development emphasized that, instead of evaluating based on collateral, value chain lending is based on the payment ability of farmers and cooperatives, by considering production history, production process and delivery ability. translation of objects.
Dr. Nguyen Tien Dinh shared research results at the Conference. Image: HT.
The value chain type of credit represents a financial value chain triangle formed between buyers, sellers and financial institutions, parties involved in the financial model. Thereby, agreements are made that include product information conditions, financial information and methods for parties to communicate and exchange information as well as how to operate risks.
Dr. Nguyen Tien Dinh said that the implementation of lending models along the agricultural value chain will contribute to completing key programs and projects that the Ministry of Agriculture and Rural Development is implementing and successfully implementing the Development Strategy. sustainable agriculture and rural development until 2050 by the Government.
Thereby, Mr. Dinh made a number of recommendations and proposals to research and amend credit policies for agricultural and rural development; design a model and submit it to the Prime Minister for early promulgation of the Credit Program for high-quality and low-emission rice products in the Mekong Delta; Implementing a pilot model of value chain finance in ongoing Programs and Projects of the Ministry of Agriculture and Rural Development, such as mortgage loans using production and agricultural product purchasing contracts between businesses and enterprises. cooperatives, farmers…
Currently, many financial institutions are providing services for agricultural production, from the banking system to all types of funds, however, the issue of credit risk still creates many obstacles. To solve the problem, Associate Professor Dr. Pham Thi Hoang Anh from the Vietnam Banking Academy recommends that the system of policy and commercial banks, in addition to designing a diverse product chain, should especially develop agricultural insurance for Some agricultural products in concentrated raw material areas for commodity production…
