In recent years, farmers in Củ Chi District, Ho Chi Minh City have successfully accessed preferable loans to expand operation, acquire advanced technology and increase profits. In the current situation where agricultural land is being narrowed down, restructuring the agriculture sector is an imperative issue.
Having started off raising catfish, Khưu Minh Hưng has invested in other kinds of high vale fish including clown knifefish and frogs. With financing from banks, Hưng has applied advanced technology on fish food self - production, which has cut half of his input costs.
Huyền, an orchid grower, has taken out a loan of 460 thousand US dollar for 2 projects in the last 3 years under preferable conditions. With the government supporting 80% of the interest, Huyền only needs to pay interest of 2% each However, some farmers have expressed concerns about the conditions fo loans, administrative procedures for registering, and assistance for operational planning.
Thanks to support from banks and the government, agricultural financing has risen significantly. By the end of March, the total debts in the agriculture sector stood at 1.4 million US dollars, accounting for 3% of the banking system’s total debt.
According to experts, in order to effectively utilize preferable loans, farmers must make a clear plan for their products, scale and clients so they can boost sustainable agricultural development.
