BIDV signs secondary loan contract with four banks
The Bank for Investment and Development of Vietnam (BIDV) on June 9 signed a sub-loan contract with four banks, who were selected for implementing the Vietnam Sustainable Agriculture Transformation (VnSAT) project.
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The agreement was inked to re-lend the credit loan borrowed from the World Bank.
The four banks are the Vietnam Bank for Agriculture and Rural Development (Agribank), the Cooperative Bank, the VP Bank and the Oriental Commercial Joint Stock Bank (OCB).
The VnSAT project, which borrowed total capital of US$238 million from the World Bank's preferential loan, aims to specifically support implementation of the new agenda in two sub-sectors -- high value rice production for export in the Mekong Delta and coffee in the Central Highlands.
The Ministry of Agriculture and Rural Development (MARD) is implementing the project, while BIDV has been assigned to manage and disburse the loan under the wholesale bank model.
The project will strengthen the ability of governmental agencies in research, design and transferring technologies to farmers, as well as implementing and supervising restructure and renewal of the agricultural sector.
In addition, the project will provide direct support to some 140,000 households planting rice in eight provinces — Kien Giang, An Giang, Hau Giang, and Tien Giang, as well as Long An, Dong Thap, Can Tho and Soc Trang, to access and apply advanced technologies.
The households will benefit from the project by being able to join the value chain from production to consumption. Their profits are expected to increase by 30% per hectare.
In the Central Highlands region, some 63,000 farmer households in the five provinces of Lam Dong, Dak Lak, Dak Nong, Gia Lai and Kon Tum will have access to technologies for sustainable coffee planting and re-planting, with expected additional income of 20% per year.
BIDV was chosen by the government as a wholesale bank to manage and re-loan US$105 million out of the US$238 million of the VnSAT project, which will be disbursed through selected banks, who in turn will provides loans for businesses to upgrade rice processing technology and facility in the Mekong Delta and for farmers to re-cultivate coffee areas in the Central Highlands.
BIDV intents to select 10 banks to participate in the VnSAT project.
