Attraction of investment capital in agriculture and rural areas

(Baonghean) -In the first 6 months of the year, the economy was still facing difficulties, capital absorption was limited, and banks had excess capital for lending. The available capital of the entire Nghe An banking system was extremely abundant, not only meeting the capital needs of the economy but also having capital reserves. In the total outstanding loans of the entire system, the credit sector for investment in agriculture and rural areas accounted for nearly 35%. This is also the sector with the most positive capital absorption in the current context.

Mr. Phan Van Duong's integrated livestock farm in Hung Dao commune (Hung Nguyen).

According to data from the State Bank of Vietnam, Nghe An province branch, by June 30, 2014, the mobilized capital in the area was estimated at VND60,311.8 billion, an increase of VND4,207.8 billion compared to the beginning of the year. The total outstanding debt of credit institutions in the area was estimated at VND101,895 billion, an increase of VND5,948.7 billion compared to the beginning of the year. Of which, loans for agriculture and rural areas reached VND35,475 billion, accounting for 34.8% of the total outstanding debt, an increase of VND2,599 billion compared to the beginning of the year. Along with policies to create favorable conditions for loans for the rural agricultural sector, interest rates have been continuously adjusted down in the first months of 2014, helping businesses and borrowers reduce a significant part of their loan costs to invest in production and business, creating many material values, developing the economy in rural agricultural areas, ensuring agricultural, forestry, aquatic and seafood products are supplied to the market, generating income and quick capital turnover.

Although he only borrowed less than 200 million VND from the Agricultural Bank, combined with the capital accumulated from many years of farming, Mr. Phan Van Duong's family in Hung Dao commune (Hung Nguyen) has actively become rich from a duck, chicken and fish pond farm of nearly 4 hectares in the locality. At the same time, it has created jobs for many workers. In 2001, Mr. Duong started farming, from the barren land in hamlet 2 of Hung Dao commune, the hands and brains of this diligent farmer have turned the barren land into a large-scale livestock farm, with a net profit of more than 1 billion VND per year. With the current livestock scale including 10,000 laying ducks, 2,000 free-range chickens, 4 hectares of fish ponds; at the same time, the family has 10 incubators to serve the incubation of duck eggs of the flock of ducks that lay 9,500 eggs per day. This method has increased his family's income because the market for consuming balut eggs is expanding, from Hanoi, Hai Phong to Hue, Da Nang, Binh Dinh...

Thanks to his long-standing business relationship, Mr. Duong packs and sends goods by bus and truck to distributors in the provinces every day, selling nearly 30 million VND worth of duck eggs every day, of which the cost of buying food for the ducks is 26 million VND/day. In addition, taking advantage of the leftover food of the ducks to feed chickens, and the food source from duck manure to raise fish, this combined farming method has helped his family maximize the profits from his farm. Particularly for fish farming, each year he harvests 40 - 50 tons of various types of fish, with a net profit of 600 - 700 million VND/year. In addition to the family's human resources, he also has to hire 4 more workers to work regularly, with a salary of 5 million VND/person/month. The most gratifying thing for Mr. Duong is that the output of the products is never unsold, as much as he has is sold. Therefore, despite the hardship and busyness of daily work, every member of his family is very happy with the results.

Mr. Nguyen Tran Trung in Van Dien commune (Nam Dan) boldly borrowed 4.2 billion VND from the District Agricultural Bank to invest in building a tunnel brick kiln with a capacity of 7 million bricks/year. Mr. Trung is also a person who dares to think and dares to do. When implementing the policy of eliminating manual brick kilns, after many sleepless nights looking for a new business direction, realizing the potential of the brick construction materials market, he decided to borrow capital to invest in this field. And the results came to his family when in the first 6 months of this year, the demand for construction bricks skyrocketed, production could not keep up with the demand for customers. In addition, this tunnel brick kiln also creates jobs for nearly 50 workers, with a salary of 3.5 million VND/person/month.

There are still many good production and business households in the agricultural and rural areas in all localities in the province. They know how to use capital for the right purposes, effectively promote loan capital to truly enrich themselves on their homeland, contributing to ensuring social security in rural areas.

The new point in rural agricultural credit investment this year is the pilot lending program to serve agricultural development according to linkage models in the agricultural production chain, applying high technology. The provincial State Bank branch has coordinated with the Department of Agriculture and Rural Development to survey local enterprises, and has advised the State Bank of Vietnam and the People's Committee of Nghe An province to approve 2 enterprises and 3 commercial bank branches in the area to participate in the pilot lending program. To date, the Bank for Industry and Trade and the Foreign Trade Bank have committed to lending Nghe An Agricultural Materials Joint Stock Corporation nearly 525 billion VND to invest in rice production and high-tech ginger production. The implementation of this project will open up a new direction for production development, from the stage of supplying materials to production and product consumption according to the linkage chain. This means that the output has been determined since production.

Credit investment in the agricultural and rural sectors often contains risk factors due to natural disasters and epidemics. However, the most important factor is the willingness of borrowers to dare to do, and at the same time, banks should boldly believe in customers' investment capabilities to have a more open lending mechanism, creating conditions for many customers to access new investment capital or expand production and business, creating more material values ​​for the economy, enriching the homeland and the country. Nowadays, along with the development process of the country, information technology has developed rapidly, helping all classes of people to access science and technology, knowledge in all aspects quickly and conveniently, thereby improving the production capacity and defense capacity of each individual, helping them to calculate more accurately, invest with focus, key points, and limit risks. Therefore, although the economy is still facing difficulties and the circulation of goods is poor, credit for investment in agriculture and rural areas is still growing steadily and positively, because this sector is meeting the practical needs of life every day.

Quynh Lan