The State Bank of Vietnam (SBV) joined the World Bank (WB) in organizing a seminar on agriculture value chain financing and the role of central banks in Hanoi on February 9.
Attending the seminar were Mr. Chris Jackson, Lead Economist and Cluster Leader for Agriculture and Rural Development of the WB; Mr. Hannington Sebaduka Peter, Senior Project Officer of the International Finance Corporation (IFC); representatives from several SBV departments and representatives from Ministry of Finance, Ministry of Agriculture and Rural Development, Ministry of Planning & Investment and commercial banks.
At the seminar, the specialists of the WB and IFC shared their experience in agriculture value chain financing, including models, advantages, disadvantages, examples of real practice worldwide, success and challenges. Moreover, Mr. Vo Minh Tuan, Deputy Director General of Department of Credit for Economic Sectors, presented the role of central banks in promoting rural finance, especially the real practice of agricultural value chain financing in Vietnam. At the same time, the participants from commercial banks also shared their practical experience in agriculture value chain financing programs.
To implement the Party's policies on agricultural and rural development, over the past year, the Government and the SBV have conducted many credit policies to promote development of agriculture and rural areas and encourage commercial banks to develop new lending programs, including a pilot program in value chain financing and hi-tech application in agricultural production in order to form a new and high efficient approach in the production, processing and consumption of agricultural products towards sustainable development.
The pilot program received great support from the Government, ministries, local authorities, Moreover, commercial banks committed to and are ready to disburse. However, there are still certain difficulties and shortcomings in the implementation of the pilot program, as well as credit policies for agriculture and rural development in general. The SBV is reviewing and specifying mechanisms and policies on a pilot lending program for the development of agriculture and rural areas in line with Resolution No.14/NQ-CP of the Government dated March 5, 2014 and continuing to review mechanisms and credit policies for agricultural and rural areas, poor households, and provide adequate funds for operations of the Bank for Social Policies, thereby contributing to obtaining the poverty reduction objective approved by the National Assembly.
LH