Tiếng Việt
On May 18, in the frame work of the seminar on trade-technology promotion, and funding attraction for cooperatives development in Vietnam, the Institute of Organic Agricultural Economics, Vietnam Cooperative Alliance, Saigon Commercial Bank (SCB) and some investors worked and signed a memorandum of understanding with Agribank of Taiwan.
According to content of the Memorandum of Understanding signed, Taiwan’s Agribank, will have a preferential credit program for agricultural cooperatives in Vietnam through the cooperation with SCB to assist Vietnamese agricultural cooperatives in buying Taiwanese manufactured goods such as spare parts, raw materials and other commodities imported from Taiwan.
Speaking about this cooperation, Mr. Vo Tan Hoang Van – General Director of SCB said that Taiwan’s Agribank will support us in terms of capital for cooperative members at preferential interest rates. Investors will work with SCB to set up a fund to support members. This fund will work as a counterpart fund providing partial interest support to help farmers access low cost capital. That is also the true meaning of this program. Statistics from Vietnam Cooperative Alliance showed that only 2% of the cooperatives can access to such loans, while the majority still cannot. The lack of capital made it difficult for many cooperatives to expand production, purchase machinery and equipment, even potentially fall into bankruptcy.
The reason for such above mentioned situation is because cooperative members often have no collaterals and can not meet strict requirements from banks. Therefore, finding and linking resources to attract international funds for agricultural development in Vietnam implemented by Institute of Organic Agricultural Economics and Vietnam Cooperative Alliance is a completely different and effective strategy.
This signing has been considered as one of the most successful results that the Institute of Organic Agricultural Economics and Vietnam Cooperative Alliance achieved in promoting trade and investment, developing economy, seeking capital for economic and cooperative development since the two parties signed a comprehensive strategic cooperation.
Source: Nha Quan Ly Magazine
