Businesses "waiting" to access preferential credit packages for forestry and fisheries

In the difficult context of economic recession, businesses, cooperatives and people operating in the forestry and fishery sector in Ha Tinh hope to soon access preferential credit packages.

The impact of the global economic recession has negatively impacted the production and business activities of enterprises in the forestry and fishery sector, especially those involved in exports. Accordingly, in the first months of 2023, orders decreased, raw material prices and production costs increased while product prices remained stagnant...

According to the preferential credit package for forestry and fisheries, the loan interest rate applied is at least 1% - 2% lower per year than the average loan interest rate for the same term.

To help ease the difficulties of businesses and people in this sector, the Government and the State Bank of Vietnam (SBV) have implemented a credit program for the forestry and fishery sector with a scale of 15,000 billion VND.

Nam Ha Tinh Seafood Import-Export Joint Stock Company (Ky Anh Town) specializes in producing and exporting sushi squid to the Japanese market. In the first 7 months of the year, the company had a "headache" when the price of input materials (mainly imported from Indonesia) increased and raw materials were scarce. Many times the factory's production line was interrupted, forcing it to cut workers.

Production activities at Nam Ha Tinh Seafood Import Export Joint Stock Company.

Mr. Nguyen Hung Cuong - General Director of Nam Ha Tinh Seafood Import-Export Joint Stock Company said: "Since the beginning of the year, orders from partners in Japan have continuously decreased, production costs have increased while selling prices have not increased, which is a big disadvantage. In the first 7 months, the company exported about 245 tons of finished products, with revenue reaching over 56 billion VND (down over 30% compared to the same period in 2022)".

“We are borrowing tens of billions of dong in medium-term packages at ACB Ha Tinh Bank. Although the lending interest rate has decreased compared to the beginning of the year, it is still over 8%/year. Therefore, the preferential credit package for the forestry and fishery sector has been approved, we are very happy and expect to have more “lifebuoys” for production and business” – Mr. Nguyen Hung Cuong expressed.

Xuan Thanh Aquaculture and Seafood Processing Cooperative is facing difficulties due to shrimp diseases and low shrimp prices.

Xuan Thanh Aquaculture and Seafood Processing Cooperative (Nghi Xuan) has been raising commercial shrimp for more than 10 years. Currently, the cooperative is having to reduce its farming area due to complicated shrimp disease developments, increasing feed prices while the price of commercial shrimp is "plummeting".

Mr. Ho Quang Dung - Director of Xuan Thanh Aquaculture and Seafood Processing Cooperative shared: “This is the main production season but we only raise 3 hectares (while the total area is 12 hectares). The Cooperative is borrowing billions of VND from Vietcombank Bac Ha Tinh; currently the lending interest rate has decreased but is still not as expected. In the context of many difficulties, we request that banks create favorable conditions for lending according to the interest rate support package for the forestry and aquaculture sector so that the Cooperative has more resources to maintain its operations.”

Currently, organizations and individuals operating in the forestry sector in the area are also facing many challenges when product output decreases. Mr. Le Ngoc Trung (Son Ham commune, Huong Son) informed: “We specialize in producing and supplying forestry trees, shade trees... In the first 7 months of the year, the facility has only sold 50,000 seedlings (down 60% compared to the same period). Having access to preferential credit packages for the forestry and fishery sector will help us feel secure in production and business.”

It is known that 12 commercial banks have registered to participate in the credit program for the forestry and fishery sector. According to Ms. Nguyen Thi Hanh - Head of Retail Customer Department, Vietcombank Ha Tinh: The State Bank of Vietnam, Ha Tinh Branch has issued a document directing the implementation of this preferential credit program. The branch is currently waiting for detailed instructions and guidance from the Head Office to implement it in accordance with regulations, ensuring that there is no policy abuse. Vietcombank will be proactive and flexible in applying loan guarantee mechanisms; diversifying credit programs and products to suit the specific activities of customers producing and trading forestry and fishery products.

Customers come to make transactions at Vietcombank Ha Tinh.

To make the program effective, the State Bank of Vietnam, Ha Tinh Branch, assigned local commercial bank branches to implement the program based on the instructions of the Head Office. In particular, it is necessary to strengthen information dissemination on credit policies to customers. Actively coordinate with the Provincial Business Association and the Provincial Cooperative Union to review, grasp the list and approach enterprises and cooperatives with forestry and fishery production and trading activities to grasp capital needs and provide loans according to the program for eligible customers.

The State Bank of Vietnam, Ha Tinh Province Branch, also requested commercial bank branches in the area to continue to cut costs to reduce lending interest rates; within its authority, exempt and reduce service fees for customers participating in this program in accordance with legal regulations and the scale of operations of commercial bank branches.

The loan recipients of the program are customers with projects and plans serving production and business activities in the forestry and fishery sectors.

The applied interest rate for loans in Vietnamese Dong is at least 1% - 2% lower per year than the average lending interest rate for the same term (short-term, medium-term, long-term) applied by the lending bank in each period.

Program implementation period until June 30, 2024.

Thu Phuong

Source: https://baohatinh.vn/kinh-te/doanh-nghiep-ngong-tiep-can-goi-tin-dung-uu-dai-lam-thuy-san/252264.htm