Hanoi (VNA) –
Better credit policies and higher consumption of farming products are necessary
to ensure efficient use of funds borrowed for high-tech agricultural projects,
experts said at a seminar in Hanoi on July 4.
These are tasks for the Government and enterprises respectively, they added.
The seminar was organised by the Vietnam Farmers’ Association, the State Bank
of Vietnam and the Ministry of Agriculture and Rural Development.
According to the State Bank of Vietnam (SBV), total outstanding loans for
hi-tech agriculture have reached nearly 32.34 trillion VND. The loans have been
given to 4,125 customers, 3,957 individuals and 168 enterprises.
Nearly 27.74 trillion VND (about 86 percent) of these loans were given to
high-tech agricultural projects and the remaining 4.602 trillion VND to clean
agriculture projects. There was no bad debt, the central bank said.
A number of large-scale high-tech projects have begun operations, involving the
breeding of cows, horticulture and fruit and vegetable exports.
The Bank for Agriculture and Rural Development has committed to a 50 trillion VND soft loan package for hi-tech and clean agriculture programmes
and projects. Loans under this package will be given at interest rates 0.5-1.5
percent lower than normal lending rates.
Despite this, the reality was that encouraging high-tech and clean agriculture
was fraught with risk, especially without stable consumption markets, the
experts said.
They added that there were not enough tools in the country to distinguish and
protect high-tech and clean agriculture projects from normal ones.
There was also a lack of guidance on the granting of ownership certificates for
assets on agricultural land, including greenhouses and other facilities, the
seminar heard.
Nguyen Duc Huong, Chairman of the Lien Viet Post Commercial Joint Stock
Bank (LienVietPostBank), said that hi-tech agriculture was often associated
with high production costs and there was not enough consumer confidence in
clean farming products.
He also noted that investment in agriculture carried greater risks because it
depended on many uncertain factors like the weather.
The State should have policy incentives for businesses to consume farmers’
products, Huong said.
He also said cooperation among farmers, and between farmers and enterprises
would help them expand production, improve processing and consumption, thereby
fostering stable production, increase in product quality and the building of
recognisable brands.
Le Thanh, Director of the Institute of Organic Agriculture Economics and
General Director of the Ket Noi Xanh Joint Stock Company, said that hi-tech
agriculture is a mode of production, not an economic model, so it must be
closely linked to new value chains.
For instance, “if an enterprise has an investment of 3-4 trillion VND for
high-tech agriculture projects without a market, this will turn into a debt for
banks, businesses and investors,” he said.
“The value chain will only succeed if farmers can frequently access
transparent, accurate, updated market information,” he said.
Thanh also said the State should pay attention to building mechanisms and
creating conditions for investors for developing supply chains.
This would create the benefits of tax collection and job creation, he added.
Pham Thi Huan, General Director of Ba Huan Co, Ltd, said many businesses wanted
to produce clean farm products but they couldn’t afford the large capital that
was required.
The State should, therefore, issue support policies for clean agriculture
production and improve the quality of agricultural development.
To support the development of adequate distribution systems, the agriculture
ministry cooperated with other agencies and sectors to develop policies on
credit, commercial infrastructure, land, tax, production, processing and post-harvest
preservation, said Hoang Anh Tuan, deputy director of the Ministry of Industry
and Trade’s Domestic Market Department.
Economist Vo Tri Thanh said the market would eventually promote high-tech
agricultural production, but the initial development phases would carry risks
and instability.
To develop hi-tech agriculture, the state should also perfect the insurance
schemes for the sector. This would be a key factor in having businesses and
farmers share risks inherent in agricultural production, he said.-VNA