TW
Central | |
People's Committee | People's Committee |
UNY | Yuan |
USD | US Dollar |
New Rural Development | New rural construction |
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LIST OF TABLES
Table 2.1: Results of achieving new rural standards in the South Central provinces in the period 2014 - 2019 77
Table 2.2: Results of achieving each criterion by 2019 divided by regions 79
Table 2.3: Average criteria achievement level/commune of regions in the period 2010 - 2019 81
Table 2.4: Results of achieving the Planning criteria group in new rural construction in the South Central provinces in the period 2014 - 2019 83
Table 2.5: Results of implementing the group of criteria on Socio-economic infrastructure in new rural construction in the South Central provinces in the period of 2014 - 2019 85
Table 2.6: Results of implementing the Economic and production organization criteria group in new rural construction in the South Central provinces in the period of 2014 - 2019 91
Table 2.7: Results of implementing the Cultural - Social - Environmental criteria group in new rural construction in the South Central provinces in the period of 2014 - 2019 95
Table 2.8: Results of implementing the Political System criteria group in new rural construction in the South Central provinces in the period 2014 - 2019 99
Table 2.9: Organizations providing agricultural and rural credit in the South Central region 100
Table 2.10: Credit capital sources participating in the New Rural Development Program in the South Central provinces in the period of 2016 - 2019 110
Table 2.11: Outstanding credit balance at the Vietnam Bank for Social Policies and the Vietnam Bank for Agriculture and Rural Development in the South Central Coast, period 2014 - 2019 112
Table 2.12: Number of customers granted credit at the Vietnam Bank for Social Policies and the Vietnam Bank for Agriculture and Rural Development in the South Central Coast, period 2014 - 2019 114
Table 2.13: Credit structure by loan purpose at the People's Credit Fund and Agribank South Central Coast, 2014 - 2019 117
Table 2.14: Credit structure by loan purpose at the Vietnam Bank for Social Policies in the South Central provinces, period 2014 - 2019 120
Table 2.15: Credit structure by loan purpose at Agribank in the South Central provinces, 121
Table 2.16: Credit structure by borrowers at the Bank for Agriculture and Rural Development and the Bank for Social Policies of the South Central Coast, period 2014 - 2019 124
Table 2.17: Credit structure by term at the South Central Bank for Social Policies, period 2014 - 2019 126
Table 2.18: Credit structure by term at the South Central Coast Agricultural and Rural Development Bank, period 2014-2019 127
Table 2.19: Credit structure by loan type at the South Central Bank for Social Policies, period 2014-2019 130
Table 2.20: Credit structure by loan type at Agribank South Central Coast, period 2014-2019 133
Table 2.21: Overdue debt, frozen debt for new rural construction at the South Central Bank for Social Policies, period 2014-2019 135
Table 2.22: Bad credit debt for new rural construction at the South Central Bank for Agriculture and Rural Development, period 2014 - 2019 136
Table 2.23: Summary of new rural construction results in regions across the country by 2019 138
LIST OF CHARTS
Chart 2.1: Actual percentage of meeting the criteria group of socio-economic infrastructure for new rural development compared to the plan of the South Central provinces 86
Chart 2.2: Percentage of implementation of the Economic and Production Organization criteria in New Rural Development compared to the plan of the South Central provinces 92
Chart 2.3: Outstanding credit balance of the Social Policy Bank and the Agricultural and Rural Development Bank in the South Central provinces in the period 2014 - 2019 113
Chart 2.4: Number of customers granted credit at the People's Credit Fund and the Bank for Agriculture and Rural Development, 2014 - 2019 115
Chart 2.5: Average outstanding loans of customers granted credit at the Social Policy Bank and the Bank for Agriculture and Rural Development in the Northern provinces, 2014 - 2019 116
Chart 2.6: Percentage of outstanding loans by purpose of capital use 117
Chart 2.7: Percentage of outstanding loans by term of the People's Credit Fund & Agribank in the South Central provinces, period 2014 - 2019 125
Chart 2.8: Credit structure by term at the People's Credit Fund of the South Central provinces, 2014 - 2019 126
Chart 2.9: Credit structure by term of the South Central Bank for Agriculture and Rural Development, 2014 - 2019 128
Chart 2.10: Credit structure by lending form of the South Central Bank for Social Policies, 2014 - 2019 131
Chart 2.11: Credit structure by lending form of Agribank South Central Coast, 2014 - 2019 132
Chart 2.12: Average number of criteria/commune of regions nationwide by 2019 139
INTRODUCTION
1. Urgency of the topic
Vietnam is an agricultural country, farmers account for the majority of the country's population. According to the General Statistics Office, as of 2018, Vietnam's population reached over 90 million people, with about 65% living in rural areas. The economy is on the path of development and integration, in which agricultural production has made great contributions to the country's socio-economic development. However, this area is still weak in many aspects, especially in socio-economic infrastructure, rural economy, mainly agriculture, is still unsustainable, low competitiveness, limited transfer of science and technology and human resource training, and has not fully exploited advantages and resources for development. This has made the material and spiritual life of rural people still low, the poverty rate is high, the gap between rich and poor between rural and urban areas is large, and many pressing social issues arise. Recognizing this issue, on the basis of Resolution 26-NQ/TW, the Prime Minister issued Decision No. 1600/QD-TTg approving the national target program on new rural construction for the period 2016 - 2020, replacing Decision 800/QD-TTg dated June 4, 2010. This is the most comprehensive framework program for the community to join hands in building a modern new rural area to create new values for rural Vietnam.
The South Central Coast region, including 8 provinces from Da Nang to Binh Thuan, has a total natural land area of 4.45 million hectares, accounting for 13.2% of the country's area, of which agricultural land accounts for 3.67 million hectares, accounting for 82.47% of the total agricultural land area; the whole region has over 1,300 km of coastline, many seaports, roads, railways, and airways connecting to other regions in the country and internationally, with diverse and rich land and climate resources, ... which are very favorable conditions for agricultural development and new rural construction. However, after 10 years of implementing the National Target Program on New Rural Construction, the region has only 378/825 communes, accounting for 45.82%, recognized as meeting new rural standards, lower than the national standard (50.8%), only higher than the Central Highlands (37.73%) and the Northern mountainous region (26.45%). Results
The implementation of the new rural development program has not been uniform among the provinces in the region, although the natural and socio-economic conditions between the localities are not too different. Some provinces have so far only achieved less than 50% of their communes meeting the new rural standards (Quang Nam, Quang Ngai, Phu Yen, Khanh Hoa, Ninh Thuan) and the average number of criteria/commune has achieved less than 15 criteria. Many criteria directly related to people's lives are still very low, such as income (60.6%), poor households (61.3%), and production organization (70.3%). The shortcomings and weaknesses in the process of building new rural areas in the region in the recent past may stem from objective and subjective causes such as: the transport infrastructure system still has many limitations and weaknesses; The production organization capacity of a part of the population in remote areas is not suitable; farmers, production households, enterprises, cooperatives and farms in the agricultural and rural areas are mainly small-scale, with little capital, lacking sensitivity to the market economy, and low competitiveness, leading to many difficulties and shortcomings in joint ventures and production, processing and consumption linkages; poverty reduction policies in recent years have many shortcomings, leading to a mindset of waiting, relying, and being satisfied with current life, lacking the will to escape poverty of a part of the poor; some loans under the Government's economic and credit programs in rural areas are still ineffective; bank lending policies are not closely linked to local policies... In addition, harsh natural conditions, with many major storms and floods occurring every year, and prolonged droughts destroying many socio-economic infrastructure works; The ability to link to create regional strengths is still fragmented, provinces invest, build and develop according to the subjective direction of each locality, creating dispersion, fragmentation, small-scale, spontaneous, low expertise leading to the strengths of each province being overshadowed, there is no cooperation, linkage, mutual support between the five sectors, making agricultural activities contain many risks. These things have made credit institutions in the region cautious in granting credit in the rural market. Currently, outstanding loans for new rural construction are still mainly concentrated in the Bank for Agriculture and Rural Development and the Bank for Social Policies (accounting for 88.9% of outstanding loans for new rural construction in the region), one of the extremely important factors leading to the process of new rural construction in the localities here has not yet begun.
keeping up with many other regions of the country. Therefore, promoting bank credit capital for agricultural and rural development, creating conditions for people and businesses to develop production, increase income, and become a solid foundation for economic development, contributing to the construction of new rural areas in the South Central provinces is an urgent issue.
Based on that reality, the author chose the topic : "Bank credit contributes to building new rural areas in the South Central provinces" as a research topic.
2. Overview of research documents
Bank credit is of great importance to agriculture and rural development, contributing to the construction of new rural areas. Therefore, this issue has been studied domestically and internationally.
Vietnam is an agricultural country and agriculture plays a particularly important role in ensuring food security, creating jobs and income for about 65% of the population, but in previous years, agriculture, rural areas and farmers have not received due attention, especially the credit capital put into the agricultural sector, to rural areas and farmers is still limited, not commensurate to meet the capital needs of the people. The issue of agriculture and rural development as well as new rural construction has only been strongly implemented since 2010 with many effective policies. Among the solutions to promote agricultural development, new rural construction and improve farmers' lives, the capital support activities of banks have shown positive signs from a number of State documents on credit policies serving agricultural and rural development.
The Party and the State have issued many policies and solutions to promote economic development in agricultural and rural areas. Since the 7th National Party Congress, the Party has always emphasized "accelerating the industrialization and modernization of agriculture and rural areas". In order to create a legal corridor to open up credit capital sources to the rural financial market, on March 30, 1999, the Prime Minister issued Decision No. 67/1999/QD-TTg on credit policy for agriculture and rural areas. With this policy, credit capital has been invested
into the agricultural and rural areas more strongly, people's lives are improved, social security is ensured... However, along with the development of the economy, this policy is no longer suitable to the requirements of reality. The credit policy serving agricultural and rural development of Decree 41/2010/ND-CP (Decree 41) was issued in 2010 to replace Decision No. 67/1999/QD-TTg. Decree 41 came into effect and supplemented the shortcomings of Decision 67, the State Bank further promoted the flow of credit capital into agriculture and rural areas. However, after 5 years of implementation, Decree 41 still has some shortcomings such as: the funding source for borrowers is still low and does not meet the demand, the number of organizations participating in credit provision is too small, there are no effective incentive and support policies for large-scale production households... Therefore, on June 9, 2015, the Government issued Decree 55/2015/ND-CP (Decree 55) to replace and supplement Decree 41. Accordingly, Decree 55/CP has overcome the limitations of Decree 41/CP such as: expanding the subjects eligible for loans, the amount of credit granted to borrowers engaged in production and business activities in the agricultural and rural areas has been increased, loan procedures... Promoting resources in the agricultural and rural sectors according to the requirements of Industry 4.0, Decree 116/2018/ND-CP was issued to amend and supplement a number of articles of Decree 55 to loosen the bottlenecks on capital limits, collateral, borrowers... to encourage many credit institutions to participate in serving the agricultural and rural sectors and building new rural areas.
2.1. Abroad
According to the research of the researcher, there have been many studies in the world on the field of credit for rural areas, typically including the studies of Lynette Ong (2012), Hoda, A. & Terway, P. (2015), Narayanamoorthy and Alli (2015), Kim, Young - Chul (2004), ... Below are some typical studies by foreign scholars on agricultural and rural credit in countries around the world with natural conditions, economy as well as agriculture with many similarities to Vietnam.