Ministry of Agriculture and Rural Development proposes a loan of 10,000 billion

On the afternoon of October 15, in Can Tho City, Prime Minister Pham Minh Chinh chaired a conference to discuss solutions to promote the implementation of the Project "Sustainable development of one million hectares of high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta by 2030" (abbreviated as the 1 million hectares of rice project).

Prime Minister Pham Minh Chinh chaired a conference to discuss solutions to promote the implementation of the Project "Sustainable development of one million hectares of high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta region by 2030". Photo: HX

According to the Ministry of Agriculture and Rural Development, on November 27, 2023, the Prime Minister approved the 1 million hectare rice project. The project is of great significance in orienting the transformation of sustainable rice cultivation methods in the Mekong Delta to increase the value of Vietnam's rice industry, improve farmers' income and living standards, adapt to climate change and reduce greenhouse gas emissions, contributing to the implementation of Vietnam's international commitments.

The 1 million hectare rice project is divided into 2 phases. Phase 1 (2024-2025) focuses on developing 200,000 hectares. Phase 2 (2026-2030) will expand an additional 800,000 hectares of high-quality, low-emission rice.

Recently, the Ministry of Agriculture and Rural Development, together with localities and the International Rice Research Institute (IRRI), has organized the implementation of 7 pilot models in 5 provinces and cities: Can Tho, Dong Thap, Kien Giang, Tra Vinh, and Soc Trang.

Currently, 4/7 pilot models of the Summer - Autumn crop in 2024 have reported very positive results. Specifically, reducing costs by 20-30% (reducing the amount of seeds by over 50%, reducing the amount of nitrogen fertilizer by over 30%, reducing 2-3 times of spraying pesticides, reducing about 30-40% of irrigation water), increasing productivity by 10% (yield in the model reached 6.3-6.6 tons/ha compared to the control at 5.7-6 tons/ha), increasing income for farmers by 20-25% (profit increased by 4-7.6 million VND/ha compared to the control), reducing an average of 5-6 tons of CO 2e equivalent to 1 ha and all harvested rice output is registered by enterprises for purchase with a purchase price higher than 200-300 VND/kg of paddy.

The results achieved in the pilot models have created great encouragement for farmers and cooperatives to trust and continue to actively participate in the project.

Scene of the conference discussing solutions to promote the implementation of the Project "Sustainable development of one million hectares of high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta region by 2030". Photo: HX

Regarding resource mobilization to implement the 1 million hectare rice project, since the end of 2023, the Ministry of Agriculture and Rural Development has developed a project proposal "Supporting infrastructure and techniques for high-quality and low-emission rice in the Mekong Delta" with a loan from the World Bank (WB) worth 430 million USD.

However, through working with the Ministry of Finance and the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development will have to change its approach from "Project" to "Public investment program to support infrastructure and techniques for high-quality and low-emission rice in the Mekong Delta" using preferential loans, as stipulated in Clause 5, Clause 9, Article 4, the amended Law on Public Investment, expected to be approved by the National Assembly in the next session.

In the face of the above situation, at the conference, the leaders of the Ministry of Agriculture and Rural Development proposed that the Prime Minister agree in principle to complete the pilot dossier of a specific policy for the Public Investment Program "Supporting infrastructure and techniques for high-quality and low-emission rice in the Mekong Delta" using preferential loans from the World Bank, estimated at about 330 million USD. After that, the Ministry of Agriculture and Rural Development reported to the Government to submit to the National Assembly for promulgation of a Resolution at the nearest Session.

In the process of completing the dossier and issuing the National Assembly's Resolution on piloting specific policies, the Ministry of Agriculture and Rural Development will coordinate with the People's Committees of provinces and cities and donors to prepare and complete the necessary documents to ensure that this Public Investment Program can be implemented from 2026.

The Ministry of Agriculture and Rural Development also proposed that the Prime Minister assign the Ministry of Planning and Investment to coordinate with the Ministry of Agriculture and Rural Development and localities participating in the 1 million hectare rice project to review and balance to continue to arrange medium-term public investment capital for the period 2026 - 2030 to ensure sufficient capital to implement the project as set out in the goals and plans.

In addition, to improve the effectiveness of the 1 million hectare rice project, the Ministry of Agriculture and Rural Development proposed that the Prime Minister direct the State Bank to instruct commercial banks to prioritize the arrangement of credit packages (about 10,000 billion VND in scale, implemented immediately in the period 2025-2027) for lending to farmers, cooperatives and enterprises participating in the linkage according to the criteria agreed between the State Bank and the Ministry of Agriculture and Rural Development, in accordance with the capital absorption capacity of people, cooperatives and enterprises.

Source: https://danviet.vn/thu-tuong-pham-minh-chinh-chu-tri-hoi-nghi-thuc-day-de-an-1-trieu-ha-lua-bo-nnptnt-kien-nghi-khoan-vay-10000-ty-2024101515494128.htm