An image of a steel boat. — Photo bariavungtau.vnpt.vn

BA RIA – VUNG TAU (Biz Hub) — The Ba Ria–Vung Tau branch of the Bank for Investment and Development of Vietnam (BIDV) will loan VND30 billion (US$1.4 million) to the Gia Han company for building a steel boat.

The BIDV branch extends credit to fishermen and fishery companies in the southern province of Ba Ria–Vung Tau to build new steel boats, vietnamplus.vn reported, adding that it had offered the loan to Gia Han, a fishery logistic services company, on January 19.

The company plans to use the funds to build a steel boat of 1,600 Cheval Vapeur (CV) or 1,177,600 watts.

So far, the bank has disbursed VND10.5 billion ($488,000) with an 11-month-term to the borrower. The total investment for the ship building project is estimated to be VND35 billion ($488,000).

The credit was extended following a 2014 Government decree on policies aimed at supporting the fishery sector.

Speaking at the contract signing ceremony, Do Ngoc Hi, director of the BIDV's Ba Ria–Vung Tau branch, said Gia Han is the first ship building enterprise in the province to receive the subsidized loan from the government.

He added that the credit contract will serve as a good example for other fishermen and fishery companies to get access to the bank's credit package.

The bank's staff has provided guidelines to local fishermen on how to access the credit and also works closely with the local authorities to resolve difficulties arising during the implementation of the decree. — VNS