Capital to implement Decree 67: Let's accompany fishermen to go offshore and stick to the sea

(Baonghean) - Decree 67/2014/ND-CP of the Government is a policy to create great efficiency in offshore exploitation and fishing; and contribute to protecting the sovereignty of the sea and islands. To remove difficulties in the process of implementing this Decree in the province, the State Bank of Vietnam and relevant agencies call for goodwill from commercial banks. For us, the field trips show that: it is true that goodwill is needed, but to get that, it is necessary to determine the responsibilities of these units...

From June 30 to July 2, 2015, the State Bank of Vietnam sent a delegation led by Mr. Vo Minh Tuan - Deputy Director of the Department of Economic Credit to conduct a survey on the implementation of Decree 67 in Nghe An. During the working sessions in the localities of Hoang Mai Town, Quynh Luu District, Nghi Loc District, Dien Chau District and Cua Lo Town, in addition to the participation of the Provincial Steering Committee for the implementation of Decree 67, representatives of the State Bank in Nghe An, there were also commercial bank branches, local authorities and project owners registering to build ships.

Representatives of the State Bank of Vietnam all affirmed that when Decree 67 was implemented, it received great attention from all levels and sectors. Therefore, up to now, the whole country has had 75 ships disbursed and signed credit contracts, of which 31 are iron-hulled ships. Meanwhile, Nghe An has only had 4 newly built wooden-hulled ships, so can this be considered a very sad thing?

After 1 year of implementing Decree 67, Nghe An has only had 4 new wooden-hulled ships built with bank loans.

The main reason for the “very sad” result, as concluded by the State Bank of Vietnam, is the lack of goodwill of commercial banks. According to Mr. Do Giang Nam, Deputy Head of the Agricultural Credit Department - Department of Credit for Economic Sectors (State Bank of Vietnam), the first goal of the promulgation of Decree 67 is to promote economic efficiency through exploitation, fishing and development of the fisheries sector.

In addition, implementing the Decree is the country's political mission. It is understandable that banks have large loan sources and low interest rates, but that does not mean that when project owners meet the conditions, banks will not lend. Banks must strictly comply with regulations. When people submit loan applications, if there is anything missing or additional, the bank must respond and provide answers in writing. Banks should not leave it up to customers. When necessary, they can coordinate with experts in various fields to support the appraisal of documents, technical parameters, etc. Mr. Do Giang Nam also frankly said: "Once the bank is not willing, it will be very difficult for the two sides to meet."

But how can commercial banks in Nghe An really have goodwill, when many leaders of these units still express "concern" because Decree 67 is a "super project" requiring large capital, high risk, and difficult management of assets formed from loan capital. Even the Deputy Director of the Provincial Bank for Agriculture and Rural Development, Mr. Tran Van Duc, also said: When participating in building new ships according to Decree 67, if the ship owner does not pay interest on time, the bank branch leader - the person who receives and processes loan applications will be affected, even "lose his job immediately"! And the debt package will then become overdue, and the project owners will not enjoy the preferential policies of the Decree.

Mr. Duc also commented that fishermen who have been going to sea for thousands of years using wooden-hulled boats will not have the experience, skills, or qualifications to operate iron-hulled boats. Therefore, there is great concern about the ability of project owners to repay loans. Or as Mr. Nguyen Duc Tai - Director of BIDV Phu Dien also "analyzed" that, to build an iron-hulled boat with a total value of 15 billion VND, the project owners will have to pay 1.3 - 1.5 billion VND/year for the principal alone. Will people be able to pay? Meanwhile, the Government only supports interest rate compensation for loans, while the capital is still the bank's capital...

Regarding those "concerns", Mr. Dang Ngoc Binh - Vice Chairman of Quynh Luu District People's Committee explained that, on average, each year in Quynh Luu District, fishermen launch over 80 fishing boats with capacities ranging from 300CV to over 1000CV. The capital for building new boats is all borrowed from commercial banks. Therefore, more than anyone else, the banks understand the exploitation capacity and efficiency of offshore fishing. Captain Hoang Van Binh, in Tien Thuy Commune, also affirmed that in Quynh Luu, there have been many newly built boats worth 4 - 5 billion VND, but after only a few years at sea, the boat owners have paid off their debts to the banks. "Banks understand that. If we can't do business, why would the banks lend us capital?" According to calculations by long-time boat owners, a boat with a capacity of over 300CV will generate an average income of about 3 - 4 billion VND/year. And for a long time, each newly built fishing boat has been invested by many members. So when a risk occurs, all members share the responsibility. Therefore, more than anyone else, boat owners and fishermen understand their ability to meet the requirements of a major policy of the Party and State.

As for the Deputy Director of the Department of Agriculture and Rural Development - Mr. Tran Huu Tien, if the bank is still concerned about risks, there is a government insurance support policy for vehicles and crew members; and said that there is no experience, no model to learn from, "there is no need to go far, just go across Ben Thuy bridge, over there, BIDV Ha Tinh branch has signed a credit contract to disburse for 3 iron-hulled fishing boats". And Mr. Tien said: "We must understand that there is nothing that has zero risk. If a program or project meets 70% of the set criteria, it is truly successful. That is objective. If there are risks in implementing Decree 67, the Government has a mechanism".

Deputy Head of the Department of Agricultural Credit - Department of Economic Sector Credit, Mr. Do Giang Nam publicly announced that on February 26, 2015, the State Bank of Vietnam issued urgent dispatch No. 1085/NHNN-TD on the implementation of Decree 67 on a number of policies for fisheries development; on May 27, 2015, the State Bank of Vietnam continued to issue dispatch No. 3778/NHNN-TD also on continuing to promote the implementation of Decree 67/2014/ND-CP of the Government on a number of policies for fisheries development. Accordingly, the State Bank requires commercial banks to direct their branches and transaction offices to publicly post loan conditions, list of documents, time for processing documents and notify the results to ship owners.

Ship owners and commercial banks can fully proactively negotiate the loan and repayment period of the ship owner. The loan term can be over 11 years, but the period of interest rate support by the State shall not exceed 11 years from the date of signing the credit contract. The loan amount shall be considered by the commercial bank based on the actual needs of the ship owner but shall not exceed the maximum loan amount prescribed in Decree 67. The commercial bank and the ship owner shall agree on the disbursement plan of loan capital and counterpart capital in accordance with the progress of building and upgrading the ship on the basis that the ship owner must ensure sufficient counterpart capital when participating in the plan and project of building and upgrading logistics service ships and offshore fishing ships.

A working session of the Department of Agriculture and Rural Development with the State Bank of Vietnam, commercial bank branches and fishermen on solutions to implement Decree 67.

According to Mr. Do Giang Nam, the State Bank of Vietnam will propose to the Government solutions to remove difficulties if risks or related problems arise during the operation of ships. He said: It is clear above but needs to be clear below. If ship owners ensure the required documents and procedures, commercial banks must consider signing credit contracts and are not allowed to refuse or cause difficulties...

Nghe An is a province with 82km of coastline, the fishing industry has been and is developing the most in the North with over 1,200 boats, including large boats over 1000CV. However, after 1 year of implementing Decree 67, only 4 new wooden boats have been built, which is very worrying. For a long time in the East Sea, the fishing means of Vietnamese fishermen in general, and Nghe An fishermen in particular, have always been at a disadvantage and disadvantage when compared to foreign fishing boats. More than ever, fishermen need ships that are sturdy enough to ensure safety during their trips to sea, compete equally in fishing grounds and participate in protecting the sovereignty of the sea and islands. Decree 67 has helped fishermen solve that requirement. Therefore, commercial banks operating in Nghe An need to voluntarily show their responsibility to Nghe An fishermen; including showing their responsibility in protecting the sacred sea of ​​the Fatherland.

Nhat Lan - Dao Tuan