"Since the businesses and pig raising households have to face challenges when the price has fallen, the repayment has not been guaranteed, the State Bank of Vietnam (SBV) sent its specialist delegations to visit some provinces in order to promptly resolved difficulties for famers. The credit institutions have actively rescheduled an amount of loans of VND 364.7 billion, of which the loans of households accounted VND 336.65 billion”, said Deputy Governor of the State Bank of Vietnam Dao Minh Tu at the monthly press conference of the Government on May 4, 2017.
The regular press conference was chaired by the Minister, Chairman of the Office of the Government Mai Tien Dung, with the presence of Minister of Information and Communications Truong Minh Tuan, SBV Deputy Governor Dao Minh Tu, etc.
In the press conference, Minister Mai Tien Dung provided more information on resolution of the Government over the difficulties of livestock industry, the pork price in particular, the price and market of agricultural products in general. According to Minister Mai Tien Dung, while the hog price is quite low (even fell to VND 15,000 – 18,000 per kilo), the pork price in the cities is quite high (around VND 100,000 per kilo in the supermarket).
The Prime Minister has required the relevant ministries and agencies to take the desisive measures, focusing on the process of slaughtering, transport, wholesale, retail, market and supermarket… to find out the reasons causes massive losses; To immediately review the plans, production, processing, circulation and consumption of pork products. "To avoid repeating that case, the functional ministries should promote the negotiations to expand market of livestock industry, especially pig products, both of the border market and the official markets. The banking industry needs to review, take measures to freeze debt and extend the payment period for farmers and households”, stated the government spokesman.
Answering reporters’ questions at the press conference, Deputy Governor Dao Minh Tu affirmed that, supporting pig raising households over the past time is an actual concern of the public and community. Currently, the slight increase in the hog price illustrated that the assistance program of Government and ministries has obtained positive results.
The Minister, Chairman of the Office of the Government Mai Tien Dung chaired the regular press conference
Deputy Governor stated, total loan outstanding for pig raising sector is nearly VND 30 thousand billion (of which, short-term loan is VND 12,665 billion, accounted for 43%; long-term loan is VND 16,679 billion, accounted for 57%) with the number of 506.800 borrowers are pig-raising households and businesses. In which, the major loan outstanding is belonged to individuals, households, up to VND 25,800 billion, accounted for nearly 90%, the latter 10% is belonged to businesses, co-operative, linking models… “Actually, the loan outstanding for pig raising sector is a large amount as compared to other agricultural sectors in particular and to total outstanding loans in general. Due to the drop price, several farmers and businesses could not sell their products and they were inevitable to delay repayment causing the bad debt increased by VND 352 billion, accounted for 1.2% total outstanding of pig farming sector. In which, households and individuals accounted big proportion of VND 311 billion”, said Deputy Governor.
Deputy Governor Dao Minh Tu added, following the direction of the Government, the SBV issued document asking credit institutions on the basis of their financial capacity and current laws to implement supportive measures to remove difficulties for those customers who breeding pigs, animal food production and veterinary medicine, including restructuring the repayment period, to exempt and reduce the borrowing, overdue interest rates, or new lending, etc. “Especially, in order to avoid the current pork redundant situation but shortage in the future, the SBV requires commercial banks to continue lend to customers, including businesses and households in need of breeding pig with profitable business plans”, Deputy Governor emphasized.
Nguyen Giang