Credit institutions to help regional farmers

Domestic and international banking experts are discussing ways to provide funds and boost sustainable agricultural production at a regional forum on agricultural financing in Hanoi that run from October 22 to 25.

Participants at the forum highlighted some of the problems farmers are facing, such as seasonal incomes, small-scale production, and difficulties accessing long-term loans, adding that this is also preventing credit institutes from hitting their targets.

Delegates at the forum. Photo: vietnamnet.vn

While agreeing with these points, the Vietnam Bank for Agriculture and Rural Development (Agribank), which co-hosted the event with the Asia-Pacific Rural and Agricultural Credit Association (APRACA), said this is also a great opportunity for the industry.

Agribank's Chairman of the Board of Directors Trinh Ngoc Khanh said Vietnam is an agricultural country, and 70 percent of the population worked in farming. His bank, the biggest commercial bank in Vietnam, was set up in 1988 to serve farmers, agriculture and rural development.

The bank has total assets of 36.6 billion USD, and provides more than 4 million rural households with various types of banking services.

The bank was APRACA chairman from 2008-2010, Secretary General Chamnong Siriwongyotha said on the sidelines of the forum.

He highlighted Agribank as the association’s strong partners with significant contributions, adding that the bank has been assigned to establish the fifth APRACA excellence centres.

The association currently has two such centres in Indonesia, one in India and one in Iran.

During the forum, international participants shared experience from their own countries on how to best disburse the loans for farmers. They will end their discussion today and before leaving on a field trip to the north of Vietnam to learn more about rural credit activities in the country.