HDBank pledges funding for big paddy field project

10-Jan-2015 Intellasia | TBKTSG | 6:00 AM Print This Post

HCM City Development Joint Stock Commercial Bank (HDBank) and Vietnam Southern Food Corporation (Vinafood 2) on January 7 struck an agreement to provide credit and secure consumption of agricultural products for those embracing the big paddy field model in the Mekong Delta.

HDBank will provide loans for farmers, households, rice producers and traders through Vinafood 2. Participants of the programme will have their output consumed by the enterprise.

However, the bank revealed no information about the total value of the lending package, interest rate and lending term.

The large-scale field project has been developed by the Ministry of Agriculture and Rural Development since 2010, attracting many plant protection and fertiliser enterprises. However, few large food companies have joined the programme.

Experts believed that food businesses must join the programme to help promote the model. Le Van Banh, director of the Mekong Delta Rice Research Institute, said local food enterprises could lose material cultivation zones to foreign firms if they do not take part in the big paddy field model.

“As far as I know, many foreign companies are interested in the big paddy field model in Vietnam with consumption contracts signed with farmers in the Mekong Delta,” said Banh.

 


Category: Finance, Vietnam

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