Agribank will be the main bank providing capital for the 1 million hectare high-quality rice project.

Agribank will be the key bank to provide timely capital at appropriate costs for all stages (planting, purchasing, processing, and consumption) in the sustainable development linkage of 1 million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030.

Agribank will be the main bank providing capital for the 1 million hectare high-quality rice project .

The information was given by the State Bank at the working session of the Prime Minister's working delegation led by Governor of the State Bank of Vietnam Nguyen Thi Hong with Vinh Long province on February 26, 2024.

In the context of increasingly stringent international market requirements, requiring improved rice quality, ensuring food safety, minimizing the use of chemical inputs and reducing emissions, the Vietnamese rice industry is facing the need to "transform". From the above context, on November 27, 2023, in Decision No. 1490/QD-TTg, the Prime Minister approved the Project "Sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta (MD) by 2030".

The project was issued with the goal of "Forming 01 million hectares of specialized high-quality low-emission rice areas associated with reorganizing the production system according to the value chain, applying sustainable farming processes that adapt to climate change, reducing greenhouse gas emissions, improving the income and living standards of rice growers, ensuring national food security, social stability, improving the quality and reputation of Vietnamese rice products in the world market and moving towards a transparent, responsible and sustainable rice industry". The State Bank was assigned to research and propose the development of a credit program to support the linkage of production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta region between cooperatives and enterprises.

To carry out the assigned tasks, according to the Department of Credit for Economic Sectors, the State Bank of Vietnam has organized working sessions, initially coordinating with the Ministry of Agriculture and Rural Development (MARD) and related units to discuss and agree on some contents and methods of implementing the Loan Program.

As the key commercial bank in investing in the development of “Tam Nong” and taking the lead in implementing policy credit, Agribank is trusted by the State Bank to perform its task as the key bank in implementing the program to promptly meet the demand for loans at appropriate costs for all stages (planting, purchasing, processing, and consumption).

In recent years, Agribank has actively contributed to modernizing agriculture, combating climate change, reducing emissions, managing sustainable resources, developing value chain lending, etc. Agribank has also participated in 4 projects with the Ministry of Agriculture and Rural Development with nearly 60 million USD (about 1,500 billion VND). Currently, Agribank is continuing to coordinate with the Ministry of Agriculture and Rural Development to implement 4 other projects (about 1,200 billion VND).

With the Project of 1 million hectares of high-quality rice, Agribank and the Ministry of Agriculture and Rural Development have signed a Memorandum of Understanding to implement the Cooperation Program to provide banking products and services to the subjects of the Project. Accordingly, Agribank will advise, support and provide banking products and services such as: deposit services, loan services, financial services... in accordance with the Project's objectives for the subjects participating.

The Mekong Delta is one of the key economic development areas, especially in the agricultural and rural areas. Agribank has always actively and drastically implemented credit policies to serve the “Three Farmers” and specific credit programs. Up to now, Agribank's outstanding loans for the rice sector in the Mekong Delta region have reached over 30 trillion VND with over 33 thousand customers, making it the largest rice lending area in the country.

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