5 proposed credit policies to develop sustainable agriculture

On the morning of February 11, Prime Minister Pham Minh Chinh chaired a conference of the Government Standing Committee with commercial banks to accelerate growth, make breakthroughs, and control inflation. Representing the Ministry of Agriculture and Rural Development (MARD) at the meeting was Deputy Minister Vo Van Hung.

Speaking at the conference, Deputy Minister Vo Van Hung emphasized that the agriculture and rural development sector needs special policies to promote innovation, enhance productivity, improve quality, and increase the competitiveness of agricultural products.

The agricultural sector leader also reiterated the need to transform the agricultural sector towards green growth, sustainable development, and higher added value while contributing to environmental protection and climate change adaptation, as outlined in Resolution 19-NQ/TW.

To achieve these goals, the Deputy Minister of MARD stated that credit policies play a crucial role as a driving force, enabling farmers, cooperatives, and enterprises to confidently invest in smart and modern agricultural production models.

Therefore, he proposed developing a specialized credit mechanism to encourage businesses and farmers to apply scientific and technological advancements, promote digital transformation, and build a sustainable agricultural sector.

Specifically, Deputy Minister Vo Van Hung put forward five proposals, with the first being the establishment of a specialized credit mechanism for businesses and cooperatives investing in green agriculture, circular economy practices, and deep processing.

Second, expand preferential credit for projects applying high technology and digital transformation in agricultural production.

Third, strengthen green credit packages and unsecured credit for sustainable agricultural production models.

Fourth, establish a dedicated credit guarantee mechanism for agricultural cooperatives, helping them access capital more easily.

And finally, promote microfinance to support farmers and small-scale producers in accessing capital conveniently.

Earlier, leaders of MARD highlighted key achievements in collaboration between MARD, the State Bank of Vietnam, and commercial banks, which have helped develop and implement effective credit policies.

For example, preferential credit policies for high-tech and organic agriculture have facilitated the development of clean, safe, and sustainable production models.

Additionally, loan programs have supported cooperatives and businesses investing in agricultural processing and preservation, enhancing the added value of Vietnamese agricultural products.

Alongside these efforts, credit packages have been introduced to support the restructuring of the fisheries, rice, and fruit sectors, ensuring sustainable supply chains and promoting digital technology in agricultural credit, making it easier for farmers and cooperatives to access funding.

However, challenges remain, such as complex loan procedures, the limited financial capacity of many cooperatives, and market fluctuations that impact farmers' ability to repay loans.