The Bank for Investment and Development of Viet Nam (BIDV) will offer preferential loans up to a total of VND10 trillion (US$439 million) this year to support high-tech agricultural businesses.

Customers can choose from different loan packages, with the interest rate of 6.5 per cent per annum for loans less than 12 months and 7.5 per cent for more than 13 months.

Companies and agricultural production establishments will be given loans to invest in agricultural machines and equipment, expand production scale, buy fertilisers and spend on irrigation, harvesting and plant protection products.

The development of hi-tech agriculture is considered as one of the Government’s key agendas.

Last month, Prime Minister Nguyen Xuan Phuc asked the State Bank of Viet Nam (SBV) to increase the preferential credit package for high-tech agricultural firms to VND100 trillion from VND60 trillion. Agriculture is one of the pillars of the country’s economy, and the central bank should direct commercial banks to provide more support and raise the limit of credit packages, the PM said.

Phuc said he wanted more attention paid to developing human resources geared towards high-tech agriculture, and to expanding markets, promoting trademarks and improving packaging, thus ensuring stable consumption.

The SBV is also required to amend and supplement the Government Decree No 55/2015/ND-CP dated June 9, 2015, on credit policy for agricultural and rural development, which aims to motivate enterprises investing in agriculture, especially high-tech agriculture, and issue medium-term credit for agricultural investors. — VNS