Tiếng Việt
Mr. Vo Tan Hoang Van (left) and Mr. Wu Ming-Ming at the MOU signing ceremony between SCB and Taiwan’s Agribank
In the afternoon of May 18th, the MOU signing ceremony on agricultural development, especially supporting Vietnamese cooperatives occurred. The signing ceremony was witnessed by the Politburo Member and Deputy Prime Minister Vuong Dinh Hue and many leaders of Vietnamese Ministries.
The signing ceremony took place immediately after the Seminar of Trade – Technology Promotion and Attraction of Funding for Vietnam Cooperatives Development organized by Vietnam Cooperative Alliance and Institute of Organic Agricultural Economics. In this occasion, Mr. Nguyen Manh Cuong, Vice President of Vietnam Cooperative Alliance, Mr. Le Thanh, Director of Institute of Organic Agricultural Economics and Mr. Vo Tan Hoang Van, General Director of SCB signed an agreement on credit provision and support for agricultural development in Vietnam. This is the important agreement which is expected to provide an overall financial solution to address one of the biggest bottlenecks in Vietnamese agricultural production. Following this, representatives of Vietnam Cooperative Alliance, Institute of Organic Agricultural Economics, Sunny World Investment and Development Joint Stock Company and Green Consulting JSC signed a strategic agreement on capital attraction and investment in Vietnamese agricultural development. Sunny World, a big company in Ho Chi Minh City, owns the system of large real estate, infrastructure and international relationships which are used to connect and mobilize domestic and foreign resources investing into Vietnamese agriculture.
On this occasion, the most important step to welcome credit from Taiwan was made. Mr. Vo Tan Hoang Van, General Director of SCB, and Mr. Wu Ming-Ming, Chairman of Bank for Agriculture and Rural Development of Taiwan, signed a memorandum of understanding on important cooperation program between Taiwan’s Agribank and SCB. According to the memorandum, both parties will cooperate together to invest in many economic fields such as preferential credit for agriculture, personal training, etc. In the coming time, as soon as Bank for Agriculture and Rural Development of Taiwan is allowed to open an offshore banking unit (OBU) in Vietnam, both parties will further enhance cooperation and support for Taiwanese entrepreneurs operating in Vietnam as well as Vietnamese agribusinesses.
The promotion of international links from Bank for Agriculture and Rural Development of Taiwan was implemented at the end of 2017. Before the signing ceremony which marks the cooperation between the two big banks, both parties have had high-level meetings since early May 2018. Mr. Wu Ming Ming, Chairman of Bank for Agriculture and Rural Development of Taiwan, said that Vietnam was an important nation in Taiwan’s new south-east-driven policy. According to his assessment, Vietnamese government is actively promoting agricultural development programs, so the cooperation between Bank for Agriculture and Rural Development of Taiwan and SCB will get many dominant advantages.
Mr. Vo Tan Hoang Van, General Director of SCB, said that according to cooperation plan, Taiwanese partners will support SCB to implement credit program at preferential interest rate for members joining the value chain of agricultural production. The maximum period for loans on production is 6 months. In terms of loans for the purchasing of equipment and machinery, the bank will consider both the depreciation period and the needs of cooperative members to establish appropriate loan terms.
Credit for agriculture has been a problem for many years. The reluctance of national banking system is largely due to uncertainty of farmers’ affordability. “Crop-bumper but low prices and good prices but losing crops” is a serious problem of a small agricultural production like Vietnam. One of the positive solutions is organizing agricultural production into the value chain. Participating in this model, farmers will receive technical support and resources from the stage of production, processing to consumption (consumption of output). Farmers’ existence is an opportunity for the banks, exploiting the potential of 6.5 million cooperative members across the country.
Stable output for agricultural products is always an important but difficult problem for Vietnamese agriculture. At this event, Mr. Pham Ngo Quoc Thang, Chairman and CEO of Lavifood Company, signed a contract with Chinese Pepper Association (China) to export fruit and vegetables to China. In recent years, Lavifood with modern vegetable processing plants applying American, European and Japanese advanced technologies in Long An has helped to bring Vietnamese vegetables and fruits to many markets in the world. This year, Lavifood will open a $ 1.5 trillion Tanifood plant with a capacity of 60,000 tones per year in Tay Ninh province, continuing its steadfast efforts to become the No. 1 vegetable and fruit processor in Vietnam and on Top 20 in the world in the next 10 years. Cooperation signing with Tuong Tuong Association will help Vietnamese vegetables and fruits reach the main agri-product market in China, one of the largest markets in the world, gradually reducing to stop the fluctuation of small export.
Source: Nha Quan Ly
