"Midwife" for the farm in Do Luong

(Baonghean) - Although many farm owners have not yet met the conditions for borrowing capital from banks (because they have not been granted land use right certificates), through on-site appraisal and inspection, the Bach Ngoc Transaction Office of the Do Luong Branch of the Agricultural and Rural Development Bank has selected reliable customers to lend capital to, creating motivation for households to develop their economy.

Mr. Ngo Tri Du, residing in Le Lai hamlet, Giang Son Tay commune (Do Luong district), stated: “My family received 10 hectares of forest land from Do Luong Forestry Company Limited to plant acacia trees. Having received the land in 2001, the third generation of acacia trees, now two years old, are developing very well. During the 2012 acacia harvest, my family received 100 million VND as compensation for caring for and protecting the acacia forest. To increase income and effectively utilize the forest land, my family borrowed 400 million VND from the Bach Ngoc branch to invest in raising cattle, goats, pigs, and fish at the Mo Da dam.” With this timely support, Mr. Du's family has gradually replanned their land, expanding their production and livestock farming, and increasing their income.

Mr. Nguyen Van Hanh's livestock farm is located in Giang Son Dong commune.

Mr. Tran Gia Thanh - Director of Bach Ngoc Transaction Office - Do Luong Branch of the Agricultural and Rural Development Bank, said: "The upper region of Do Luong district has great potential for economic development based on the farm model. Therefore, the banking sector focuses on coordinating with people to borrow capital for investment in farm economics, while creating the most favorable conditions for customers."

To promptly provide capital to the people, the branch office established a mobile service team in the commune. Although this is hard work, it quickly provides capital to the people and, through this activity, accurately checks and assesses how customers use the borrowed capital at the local level. A difficulty in investing capital for farm economic development in this area is that many families have not yet been granted land use right certificates. Meanwhile, there is a need for long-term loans… therefore, gathering information from customers and especially the assessment and inspection by the mobile team are important factors for the Bach Ngoc branch office in deciding whether to grant loans to customers.”

It is known that recently, the Bach Ngoc branch has been actively supporting people in six communes – Giang Son Tay, Giang Son Dong, Hong Son, Ngoc Son, Lam Son, and Boi Son – with loans for economic development. Mr. Cao Tien Son's integrated livestock farm in Hamlet 6, Lam Son commune, received a loan of over 200 million VND from the Bach Ngoc branch to develop his livestock farming. Mr. Son said: “The farm covers 2 hectares, and the land lease from the commune is for 5 years. Under such conditions, it was very difficult to borrow money from the bank, but after the Bach Ngoc branch assessed and evaluated the situation, they decided to grant the loan. Along with accumulated capital, my family invested nearly 1 billion VND to build the integrated livestock farm. To date, the farm has an annual income of hundreds of millions of VND from raising wild pigs, goats, fish, cattle, chickens, etc.”

Meanwhile, at the farm of Mr. Nguyen Van Hanh's family in Giang Son Dong commune, with a loan of 500 million VND from the Bach Ngoc branch, they have invested heavily in large-scale industrial pig farming and fish farming, while also undertaking the protection of 10 hectares of forest... This farm economic model generates nearly 1.3 billion VND in income annually. Thanks to this successful economic development, Mr. Hanh's family has repaid their loans on time and continues to reinvest in expanding their farm.

In principle, if families have not been granted land use rights certificates for developing farm businesses, they do not meet the loan application requirements. However, by prioritizing customer trust in the appraisal, evaluation, and loan granting process, and taking responsibility, the Bach Ngoc Branch has successfully processed loans for many people to develop their family businesses, facilitating capital flow in the rural areas of Do Luong.

In 2014, thanks to effective credit management, the Bach Ngoc Branch mobilized capital totaling 194,882 million VND. Simultaneously, it focused on credit investment, resolving 1,280 loans for customers with a total turnover of 136,127 million VND during the year. Identifying loan customers as households investing in agricultural production and business development, the Bach Ngoc Branch prioritized timely capital allocation, particularly proactively restructuring investment and increasing investment productivity from 63.342 million VND/household (2013) to 70.398 million VND/household (2014). Through this partnership, the Bach Ngoc Branch helped many households effectively utilize the potential of local land and human resources, achieving legitimate wealth.

Mr. Tran Gia Thanh, Director of Bach Ngoc Branch, added: “Currently, 30 farm owners in Do Luong have borrowed capital ranging from 200 million to nearly 1 billion VND per household to invest in integrated VAC (gardening, animal husbandry, and aquaculture) farm models. All farm models have proven effective in utilizing the borrowed capital and repaying loans on time. In the coming time, the unit will strengthen its propaganda and mobilization efforts to encourage people to borrow capital more confidently, and at the same time increase loan limits to create favorable conditions for farmers to develop farm and household economic models…”

Hoang Vinh