Supporting credit interest rates according to Resolution 08: Driving force for agricultural and rural development

– After more than a year and a half of implementation, the policies in Resolution 08/2019/NQ-HDND dated December 10, 2019 of the Provincial People’s Council on specific policies to encourage investment, to develop cooperation and to link production with consumption of agricultural and rural products in the province in the period of 2020 – 2025 (Resolution 08) has promoted positive results. In which, the most obvious and outstanding result is the policy of supporting credit interest rates.

As soon as the Resolution 08 was issued, the Provincial People’s Committee issued a plan to implement the resolution; to decide on the promulgation of support norms for each type of items and works under projects encouraging investment in agriculture and rural areas; documents to urge the implementation of the resolution…

In addition to the close attention and direction of the Provincial People’s Committee, relevant departments and agencies, People’s Committees of districts and city have focused on implementing the resolution. Accordingly, the sectors including planning and investment, agriculture and rural development, industry and trade, science and technology, finance, the Provincial State Bank issued inter-sectoral guidelines on the order, procedures and dossiers for implementation of specific policies to encourage investment, develop cooperation, link production with consumption of agricultural and rural products in the province. Departments, sectors, People’s Committees of districts and city have all developed plans to implement the resolution, issued documents to urge and direct…

In addition to the attention and direction of all levels and sectors, in order for the resolution to soon come to life, the propaganda and dissemination of the resolution has been carried out from the province to the grassroots level. Up to now, the whole province has organized nearly 180 training and propaganda sessions with about 10,500 participants.

In addition to general propaganda about the resolution, in order to effectively implement Resolution 08, especially the policy of supporting credit interest rates, the Provincial State Bank of Vietnam also implemented specific solutions. Ms. Truong Thu Hoa, Director of the Provincial State Bank of Vietnam said: “Our unit quickly developed a plan, which directed commercial bank branches in the area to study, disseminate and thoroughly inform our customers about  the contents of the  Resolution, thereby supporting customers as well as making loans in accordance with regulations.

People in Tan Van commune, Binh Gia district develop buffalo herds from the policy of supporting credit interest rates of Resolution 08

Resolution 08 issued includes 7 groups of policies including supporting credit interest; supporting the application of hi-tech agriculture, production of new products with high economic value, concentrated commodity production; supporting investment in facilities for preserving and processing agricultural and forestry products, slaughtering livestock and poultry; supporting brand development, market expansion; supporting the development of cooperation and association in the production and consumption of agricultural products; supporting the establishment and bringing young intellectuals to work in agricultural cooperatives; supporting investment in infrastructure outside the project fence.

After more than one year and a half of implementing Resolution 08, the policy to support credit interest rates has been the most effective one. From the credit capital supported by interest rates under Resolution 08, it has helped many households improve their production and business efficiency.

Ms. Hoang Thi Huong, Keo Coong village, Tan Van commune (Binh Gia district) said: “My family has been raising buffaloes and cows for 3 years. However, because the family’s capital is small, my family only raises 3 to 5 ones once. Thanks to the propaganda and guidance of the authorities, my family knew about the support contents in Resolution 08 and my family immediately thought of accessing loans to expand production. After being guided by a professional agency to set up the project, within a short time, the bank approved to lend my family 300 million VND to implement the project. With capital, my family has expanded the scale of the barn and increased the herd of buffaloes and cows to 10 ones once and will continue to expand in the future. Thanks to the expansion of production scale, the family has in an income of over 100 million VND/year, an increase of 2 to 3 times compared to 3 years ago.”

Along with Ms. Hoang Thi Huong’s family in Tan Van commune, Binh Gia district, many other households in the province have accessed the policy of supporting credit interest rates according to Resolution 08. According to data from the Provincial State Bank of Vietnam, by the end of June 2021, in the province, there are 2 businesses, 3 cooperatives, 186 production households in 7 districts eligible for loans under the credit interest rate support policy of Resolution 08 with total loans over 90 billion VND. From this loan source, households, businesses and cooperatives have more conditions to expand production and business, step by step increase their income and improve their living standards.

Mr. Ly Viet Hung, Director of the Department of Agriculture and Rural Development said: “Although the Resolution 08 has newly been implemented, through practical situation, initially, the support policies have been promoted positive results, especially the policy of supporting credit interest rates. From loans, people as well as businesses and cooperatives have more conditions to build and expand production, in which, most of them are models of afforestation, medicinal plants, animal husbandry, etc. The policy brought about practical benefits to people and businesses and cooperatives, contributing to economic development in rural areas. Since then, it has made an important contribution to the agricultural restructuring program associated with new rural development in the province.