Hanoi, November 30, 2015 - The Ministry of Finance and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) signed a USD105 million sub-loan of the total capital of USD238 million from World Bank's preferential loan for Vietnam Sustainable Agriculture Transformation project (VnSAT) project.

 

​The WB’s loan aims to specifically support the Government of Vietnam in effectively implementing the agricultural sector restructuring project through strengthening institutional capacity for the sector, innovating sustainable farming methods, and enhancing value chain for rice and coffee sectors in the two key production regions including Mekong Delta and Central Highlands. The Ministry of Agriculture and Rural Development has implemented the project while BIDV was assigned to manage and disburse the loan under wholesale bank model.

The project would strengthen the ability of governmental agencies in research, design and transferring technologies to farmers, as well as implementing and supervising the restructure, and renewal of the agricultural sector.

In addition, the project would provide direct support to around 140,000 households planting rice in 8 provinces including Kien Giang, An Giang, Hau Giang, Tien Giang, Long An, Dong Thap, Can Tho and Soc Trang provinces, to access and apply advanced technologies. The households would benefit from the project by being able to join the value chain from production to consumption. Their profits were expected to increase by 30 percent per hectare, bringing the total additional value between USD40 million and USD60 million a year for the whole region. 

In the Central Highlands region, around 63,000 farmer households in five provinces of Lam Dong, Dak Lak, Dak Nong, and Gia Lai, and Kon Tum, would have access to technologies of sustainable coffee planting and re-planting, with expected additional income of 20 percent a year and USD50 million for the region.

Tran Anh Thu, director of BIDV's Transaction Center 3 which would directly manage the loan, said the bank would provide preferential loans to businesses in the Mekong Delta to upgrade rice processing technologies and machines as well as to farmers in the Central Highlands to replant coffee trees. After completing the sub-loan signing, the BIDV expects to disburse the capital from the beginning of the first quarter of 2016.

This has been the fourth time when the Ministry and BIDV have signed sub-loans of international credit projects. Previously, the bank received loans from three rural finance projects with total of USD548 million from the WB. BIDV has safely managed and disbursed the loans and paid the principal, interest and commitment fees on time. The bank disbursed VND44 trillion (USD2.1 billion) for agricultural and rural development and lending to 1.7 million households of which 600,000 were poor and low income households. The loans also created 400,000 jobs for people in rural areas. Regulations in the projects have also contributed to increasing people's awareness in rural areas to protect the environment when implementing their production plans.

For more information, please contact:

Bank for Investment and Development of Vietnam JSC

Branding and Public Relations

Hotline: 19009247

Website:www.bidv.com.vn