Pangasius farming. (Photo: Worldofpangasius)
Pangasius farmers to benefit from lower loan interest rates
Wednesday, October 17, 2012, 04:00 (GMT + 9)
The government has agreed to offer pangasius farmers preferential loan interest rates so they can expand their business. Farmers will receive a beneficial interest rate of 11 per cent and many provinces are already implementing this measure.
This decision follows a string of meetings between ministries, the State Bank of Vietnam and the Vietnam Development Bank to discuss solutions for increasing aquaculture output.
Most of the pangasius (tra fish) farmers that will benefit from the new measure are concentrated in the Mekong Delta.
An Giang Province has given out roughly USD 12 million for loans to farmers at a preferential interest rate of 11 per cent per year, VNS reports.
In Vinh Long, the Department of Agriculture and Rural Development said six farming households were able to borrow loans from the provincial Agribank at the new favourable rate.
Nguyen Huy Dien, deputy director general of the directorate of Fisheries, said most of the outstanding loans taken for fish farming, collecting and selling tra have been adjusted to bring rates below 15 per cent.
Dien said that right now, the cost for breeding pangasius is around USD 381,000 per ha and often takes 8-10 months, which means growers must ask for loans that take a similar time period to become available to them. Simultaneously, banks only allow short-term loans at several million dong per ha.
The directorate of Fisheries said it has suggested that the Ministry of Agriculture and Rural Planning come up with a policy to permit non-governmental joint stock banks to give preferential loans to tra farmers.
It also suggests the finance ministry should allow these growers to recoup VAT taxes for costs related to buying food, plus adding materials used in the production of livestock food to the price stabilisation list.
According to the Vietnam Seafood Exporters and Producers (VASEP), the country is hopeful about reaching its yearly tra export target of USD 1.8 billion - USD 2 billion.
Meanwhile, seafood export turnover reached nearly USD 4.5 billion in the first nine months of 2012. VASEP General Secretary Truong Dinh Hoe has thus said that, as the amount is equal to half of last year’s figure, the sector's 2012 export target of USD 6.5 billion may not be realized, VOV reports.
Dinh Hoe blames this development on the impact of the economic crisis across the globe.
- Pangasius exporters expect to meet export target for 2012
- Tra exporters continue to struggle despite upbeat sales
By Natalia Real