|The State Bank of Viet Nam (SBV), the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology are considering cooperation on the pilot programme. — File Photo
HA NOI (VNS) — A pilot programme will aim at financing connectivity models between businesses and farmers in order to promote high-technology application in agricultural production and exports.
The State Bank of Viet Nam (SBV), the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology are considering cooperation on the pilot programme.
Director of the Credit Department under the State Bank of Viet Nam Nguyen Viet Manh stated that there have been many agricultural production models promoting connectivity between businesses and farmers across the country.
A number of these models have proved to be successful, including the large-scale rice field model in An Giang Province and other localities, the high-tech vegetable and flower cultivation model in Lam Dong Province and the dairy farming and milk product production model in Nghia Dan in Nghe An Province.
Using these models, businesses had not only created large-scale rice fields and mechanised agricultural production, but also had stable raw material production areas and constructed trademarks and geographical indications for their products in both domestic and foreign markets. The models benefited both farmers and businesses.
At a government's regular meeting in February 2014, SBV Governor Nguyen Van Binh suggested the construction of a credit programme for connectivity models and high-technology applications and farm export promotion projects.
Through its Resolution 14/NQ-CP, the government assigned the Central Bank to work with the Ministry of Science and Technology and the Ministry of Agriculture and Rural Development to implement a pilot credit programme for connectivity models. These three institutions are working together to survey, research and construct experimental policies for a large-scale application.
Manh stated that the pilot credit programme will reduce the input costs of the products of the connectivity models by offering preferential credit for the models.
The programme could provide unsecured loans for businesses and farmers as members of a connectivity model.
With this pilot programme, the banking sector can not only increase credit growth related to agricultural production but also promote large-scale, competitive agricultural production, contributing to gradually improving farmers' living standards and constructing and developing new rural areas.
Manh reported that the Central Bank, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Development and credit institutions were expected to select about 20 connectivity models as the pilot credit programme's beneficiaries.
These include the large-scale rice field model, the product value chain-based connectivity model and the high-technology application business model, among others, with priority given to rice, seafood, livestock breeding, vegetables and fruits.
Two years after the completion of the pilot credit programme, the SBV will consider policy improvements and multiplication of the models.
Manh added that agricultural insurance policies, farm produce planning and its management, farm export promotion and law-based assistance and market information are important for the success of the pilot credit programme. — VNS