State bank launches VNĐ15 trillion credit package to support forestry and fishery businesses

The State Bank of Vietnam (SBV) on Wednesday issued a document guiding commercial banks to implement a credit package, worth VND15 trillion (US$641 million), for businesses in the forestry and fishery sector.

Under Document No 5631, the eligible borrowers of this credit package are firms that have projects or plans to serve production and business activities in forestry and fishery areas.

They will enjoy lending interest rates in đồng which will be at least 1-2 per cent/year lower than the average interest rates offered for short-term, medium-term, and long-term deposits by commercial banks. 

The credit package will be implemented until the end of June 30, 2024, according to the document. 

In addition, commercial banks will, according to their competence, waive and reduce service fees for customers participating in the programme, by legal regulations and the size of the bank's operations.

The programme will be implemented by self-mobilised capital from banks and lending under the normal commercial mechanisms.

Up to now, 12 commercial banks have registered to participate in the programme. They are Agribank, BIDV, VietinBank, Vietcombank, LPBank, Sacombank, MB Bank, ACB, Nam A Bank, OCB, Eximbank and SHB. 

Previously, Prime Minister Pham Minh Chinh instructed the SBV to study and propose a credit package of VND10 trillion to support businesses producing and processing seafood and forestry products.

The PM asked for measures to help businesses conquer major markets while seeking new markets to boost exports.

He also asked the Ministry of Finance to direct authorised agencies to consider and implement solutions relating to exemptions and also reduce or extend payments of taxes and land and water surface rental fees to support businesses.

The export value declined by 28.2 per cent for main forest products to $6.5 billion over the past six months as European and American consumers tightened their spending and reduced consumption of wood products, resulting in a decline in new orders. 

Seafood exports also slumped 27.4 per cent year-on-year to $4.13 billion during the period. Of which, a high decline of 32 per cent in shrimp exports to $1.56 billion and 40 per cent in the tra fish export to $840 million were also recorded in H1.

Source: VNS