Policy remains on paper

According to the Prime Minister’s recent decision, people can borrow zero percent-interest loans to buy agricultural tools, construction materials and other goods.

Organisations and individuals can also receive State-subsidised loans at an interest rate of 4 percent. Each loan must not exceed VND7 million for buying agricultural materials and VND 5 million for construction materials.

However, not many people have benefited from this policy due to some shortcomings in implementing these stimulus packages.

Firstly, there is not enough information about the beneficiaries as well as the procedures for borrowing State-subsidised loans provided by the local authorities and credit organisations.

Le Khac Triet, head of the Association of Rural Small and Medium-sized Enterprises (VARISME), says none of over 700 businesses and 3000 handicraft villages of the Association have accessed the loans yet. This may lead to the loss of thousands of jobs in rural areas.

Secondly, due to the improper appraisal of mortgage assets, usually at half its real value or even lower than expected, businesses and farmers find it impossible to get enough secured loans to maintain production.

More leverage needed

Many people say that the implementation of stimulus packages requires a big push.

Luu Duy Dan, General Secretary of the Association of Handicraft Villages, says that mass organisations like the Women’s Union and the War Veterans’ Association should play a more important role in encouraging the effective use of packages.

Huynh Ngoc Sieu, chairman of the Tan Dia Loi Agricultural Cooperative in Long An province, says that businesses and farmers should be given information on how to access loans.

VARISME also proposes establishing a development fund for the Association of Rural Small and Medium-sized Enterprises with money from the packages. The fund aims to help solve businesses’ financial problems and create more jobs for farmers in rural areas.