Agribank lends over US$219 million to develop hi-tech agriculture

The loans were taken out by nearly 3,100 borrowers, including 80 corporate customers who were lent over VND4.43 trillion (US$190.5 million).

After the Vietnam National Green Growth Strategy was formulated in 2012, Agribank has launched a credit package worth VND50 trillion (US$2.15 billion), offering preferential interest rates, to develop clean agriculture, with priority given to hi-tech agricultural projects. 

The soft loans, with interest rates 0.5% – 1.5% lower than normal one, have been available since November, 2016 for enterprises, cooperatives, unions of cooperatives and farm owners that involve in large-scale supply chains of safe agricultural products.

Many hi-tech agricultural projects have been put into operation thanks to funds from the State-run lender, including large-scale rice farming in Can Tho, livestock farming in Bac Ninh, Lao Cai, Ha Nam and Dong Nai, shrimp breeding in Kien Giang, Ninh Thuan Binh Thuan, and VietGAP dragon fruit farming in Binh Thuan.

The Vietnam National Green Growth Strategy was adopted by Prime Minister Nguyen Tan Dung in September, 2012, aiming to accelerate the process of economic restructuring in a way that promotes the efficient use of natural resources, greenhouse gas emission reduction, climate change adaption, and sustainable economic development.

It looks to facilitate the development of green industry and green agriculture based on environmentally-friendly structures, technologies and equipment; enhancing investment in natural capital; and proactive prevention and treatment of pollution.

Key targets for green production towards 2020 are to have the value of high technology and green technology make up a share of 42% – 45% of the country’s GDP and application of clean technologies to reach 50%.