Rural areas need more investment in agriculture in Vietnam
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Vietnam as well as other countries in the region are still facing many challenges that seriously affect sustainable growth in the long run. Particularly, such as climate change, environmental pollution, depletion of resources in which agricultural production is the most influenced and obvious.
Because of that, experts said that it is necessary to increase investment in rural agriculture, especially investment from state budget for infrastructure, science and technology application.
"As the economic growth rate tends to slow down, it means that the income of a part of the population will be less improved and the poor will be the most vulnerable. These issues have been, and will be, posing many challenges for poverty reduction in general and credit for agriculture and rural areas for the poor in particular - Deputy Governor of the State Bank of Viet Nam Dao Minh Tu , identify.
On September 5th, the Social Policy Bank in cooperation with the Association of Rural Agriculture Credit Asia-Pacific, the International Fund for Agriculture Development held a workshop "Best practices on Rural Finance for the Poor: The Vietnamese Experience " in Hanoi. At the meeting, Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, said that functional agencies should continue to improve the policy institutions and best financial practices that can help Vietnam mobilize and distribute to use effective financial resources for the restructuring of agricultural production as well as hunger eradication and poverty reduction. It is necessary to continue implementing monetary policy instruments (refinancing and reducing compulsory reserve ratios) in order to support capital for credit institutions to promote agricultural and rural loans.
According to statistics, outstanding loans to agriculture and rural areas averaged about 20% per year, always higher than the overall credit growth of the economy. By the end of June 2018, outstanding loans were over VND 1.431.171 billion, accounting for 21% of total outstanding loans of the economy and up to 9.2% compared by the end of 2017. Agricultural and rural credit programs has contributed positively to the development of agriculture and rural development and improved the living standards of farmers.
Overview of investment in agriculture by Vietnamese enterprises
In recent years, with the implementation of the decrees of the Government, some provinces has issued many policies to encourage and attract enterprises to invest in agriculture and rural areas, encourage the development of cooperation in production and consumption of agricultural products.
However, at present, some investors and enterprises in the agricultural and rural areas still encounter some problems such as the existence of many taxes and charges in agriculture to increase costs of the business; weak and limited mechanics supporting agriculture in quantity; unsustainable consumption market; lack of young labor force involved in agriculture; lack of incentives for technology investment in agriculture. After the process of information exchange, the provincial leaders have received comments and affirmations and promise to create favorable conditions for businesses and investors operating in the agricultural and rural areas.
To learn more about agriculture, agricultural machinery and international investors, go and find out more in Agri Vietnam exhibition which is The 2nd International Trade Show on Agricultural Machinery, Chemicals, and Products in Vietnam will return from 26th to 28th June, 2019 after its first successful launch in 2018.