Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

THE HANOI TIMES — The State Bank of Vietnam (SBV), following the government's request, on April 15 ordered 15 commercial banks to roll out a VND100-trillion (US$3.9 billion) credit package to support enterprises and production households in the agriculture, forestry, and fisheries sectors.

The program targets customers with viable projects or plans related to agricultural, forestry, and aquaculture production and business. It will continue until the total lending volume reaches $3.9 billion, based on commitments registered by participating banks.

The banks will be responsible for monitoring, compiling accurate performance data, and submitting regular reports to the SBV and other relevant authorities. They are also expected to fully comply with the program's conditions regarding borrower eligibility and preferential interest rates.

In addition to the listed banks, the SBV is encouraging other commercial banks to join the program to help stimulate economic growth and promote sustainable development in agriculture.

Agriculture, forestry, and fisheries play a vital role in Vietnam’s economy, ensuring national food security while contributing significantly to export earnings.

In 2024, the total export value of these sectors reached a record high of $62.4 billion, an increase of 18.5% compared to 2023 while trade surplus hit an all-time high of $18.6 billion, up 53.1%, according to the General Statistics Office.

The agricultural sector is also home to a large number of cooperatives and small and medium-sized enterprises, which remain a priority for credit support.

The credit package was initially launched in July 2023 with a budget of VND15 trillion ($580 million) for forestry and fisheries. By the end of that year, the amount had doubled to VND30 trillion ($1.2 billion) and increased to VND60 trillion ($2.3 billion) in early 2024.