Home / Agricultural Development

Bank credit solutions for agricultural and rural development in Vinh Long province - 1


MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS



Maybe you are interested!


LE MINH TUNG

Bank credit solutions for agricultural and rural development in Vinh Long province - 1


BANK CREDIT SOLUTIONS

FOR RURAL AGRICULTURE DEVELOPMENT IN VINH LONG PROVINCE


Major: FINANCE - BANKING ECONOMICS Code: 60.31.12


MASTER'S THESIS


SCIENTIFIC INSTRUCTOR: DR. BUI VAN TRINH


HO CHI MINH CITY – 2012

INDEX

Cover Page Pledge Table of Contents

List of tables List of abbreviations

INTRODUCTION 1

CHAPTER 1: THEORETICAL BASIS AND THE ROLE OF BANK CREDIT IN AGRICULTURAL AND RURAL DEVELOPMENT IN VIETNAM 7

1.1 The role of agriculture and rural areas in Vietnam 7

1.1.1 Concept and characteristics of agriculture - rural areas 7

1.1.1.1 Agriculture and its characteristics 7

1.1.1.2 Rural economy and characteristics of rural economic structure 8

1.1.2 Factors affecting agricultural and rural development 9

1.1.3 The role of agriculture and rural areas in Vietnam 11

1.2. The role of bank credit in the process of agricultural and rural development in Vietnam 12

1.2.1 Bank credit and characteristics of bank credit 12

1.2.1.1 Credit, nature and functions of credit 12

1.2.1.3 Characteristics of bank credit 14

1.2.1.3 Characteristics of bank credit for agricultural production.. 15

1.2.2 The role of bank credit in the process of agricultural and rural development 16

1.3 The relationship between bank credit and rural agricultural development 21

1.4 The necessity of bank credit for rural agricultural development 21

1.4.1 Accelerating the growth rate of the economy 21

1.4.2 Major impacts and influences on the monetary circulation situation 22

1.4.3 Contribute to increasing people's income and bank profits 22

1.4.4 Contribute to limiting usury 22

1.4.5 Encourage the use of convenient banking services 23

1.3 Experience of some countries on bank credit to promote rural agricultural development and lessons for Vietnam 23

1.3.1 Experience of some countries on bank credit to promote rural agricultural development 23

1.3.1.1 Thailand's experience 23

1.3.1.2 China's experience 25

1.3.1.3 Bangladesh's Experience 26

1.3.2 Lessons learned that can be applied to Vietnam 27

CHAPTER 2: ANALYSIS OF THE CURRENT STATUS OF CREDIT ACTIVITIES FOR AGRICULTURAL AND RURAL DEVELOPMENT OF THE COMMERCIAL BANK SYSTEM IN VINH LONG PROVINCE 29

2.1 Natural and socio-economic characteristics of Vinh Long province 29

2.1.1 Natural features 29

2.1.2 Socio-economic characteristics 30

2.2 Current status of agricultural and rural development in Vinh Long province in the period 2007 - 2011 33

2.2.1 Results achieved 33

2.2.1.1 Production within the agricultural sector 33

2.2.1.2 Forestry 36

2.2.1.3 Fisheries industry 37

2.2.1.4 Rural infrastructure development 38

2.2.1.5 People's life 38

2.2.2 Existences and limitations 39

2.3. General analysis of some business results achieved by commercial banks in the area 40

2.3.1 Network structure and market share by type of credit institution 40

2.3.2 Capital mobilization situation 42

2.3.2.1 Capital mobilization by subject 43

2.3.2.2 Capital mobilization by currency 43

2.3.2.3 Capital mobilization over time 44

2.3.3 Lending situation 44

2.3.3.1 Outstanding loans by currency 45

2.3.3.2 Loan balance over time 46

2.3.3.3 Outstanding loans by economic sector 46

2.3.4. On credit quality 47

2.3.5 General assessment of banking operations 47

2.2.5.1 The sides are 47

2.2.5.2 Uncovered aspects

2.4 Situation of capital investment in rural agricultural development in Vinh Long province in the period 2007-2011 49

2.4.1 Investment capital from the state budget 49

2.4.2 Equity of businesses and farmers 50

2.4.3 Bank credit capital 50

2.5 Analysis of the situation of bank credit activities for agricultural and rural development in the area 52

2.5.1 Some bank credit policies for rural agricultural development 52

2.5.2 Current status of lending for agricultural and rural development in Vinh Long province in the period 2007-2011 55

2.5.2.1 Loan turnover and outstanding loans 55

2.5.2.2 Outstanding debt classified by borrower 56

2.5.2.3 Outstanding balance over time 60

2.5.2.4 Outstanding loans by economic sector 60

2.5.3 Bad debt for agricultural and rural loans 62

2.5.3.1 Bad debt by economic sector 63

2.5.3.2 Bad debt and bad debt ratio by borrower 64

2.6 Existence, limitations and causes 65

2.6.1 Existing limitations 66

2.6.1.1 Existence of network operations 65

2.6.1.2 Problems in capital mobilization 66

2.6.1.3 Restrictions on lending 66

2.6.1.4 On policy mechanism 67

2.6.1.5 On economic conditions of province 68

2.6.1.6 On the borrower's side 68

2.6.1.7 On the part of commercial banks 68

2.6.1.8 Other existences 69

2.6.2 Cause 69

CHAPTER 3: BANK CREDIT SOLUTIONS FOR AGRICULTURAL AND RURAL DEVELOPMENT IN VINH LONG PROVINCE 71

3.1 Basis for proposing solutions on bank credit to serve rural agricultural development in Vinh Long province 71

3.1.1 Socio-economic development goals of Vinh Long province to 2020 71

3.1.2 Orientation for agricultural and rural economic development of Vinh Long province to 2020 72

3.1.3 Development orientation of the credit institution system in Vinh Long province until 201575

3.2 Some main solutions on bank credit to serve rural agricultural development in Vinh Long province 77

3.2.1 Network solutions 77

3.2.2 Capital mobilization solutions 77

3.2.3 Lending solutions 78

3.2.4 Solutions on training and human resource development 82

3.2.5 Other support solutions 83

3.3 Proposals and recommendations 83

3.2.1 For the Government 83

3.2.2 For Vinh Long Provincial People's Committee 84

3.2.3 For State Bank of Vietnam, Vinh Long Province Branch 85

3.2.4 For the head offices of commercial banks 85

CONCLUSION 87

REFERENCES 89

LIST OF TABLES


TABLE Page


Table 2.1: Total GDP value by economic sector in the period 2007-2011 30

Table 2.2: Rice yield and area in the period 2007-2011 34

Table 2.3: Fruit tree yield and area in the period 2007-2011 34

Table 2.4: Yield and area of ​​color crops in the period 2007-2011 35

Table 2.5: Aquatic product output in the period 2007-2011 37

Table 2.6: Types of credit institutions in the province 41

Table 2.7: Capital mobilization situation of commercial banks in the area in the period 2007-2011 42

Table 2.8: Sales and outstanding loans of commercial banks in the area 45

Table 2.9: Outstanding loans by economic sector 46

Table 2.10: Bad debt situation and bad debt ratio of commercial banks in Vinh Long province 47

Table 2.11: Investment capital from the State budget in recent years 49

Table 2.12: Market share of agricultural and rural loans of credit institutions in the area51 Table 2.13: Sales and outstanding loans for agriculture and rural areas in the province55

Table 2.14: Outstanding agricultural and rural loans by loan object 57

Table 2.15: Outstanding rural agricultural loans over time 60

Table 2.16: Outstanding rural agricultural debt by economic sector 61

Table 2.17: Bad debt and bad debt ratio for rural agricultural loans 62

Table 2.18: Bad debt and bad debt ratio by economic sector 63

Table 2.19: Bad debt and bad debt ratio by borrower 64

Table 3.1: Planning for the development of the crop cultivation industry to 2020 73

Table 3.2: Livestock development planning to 2020 73

Table 3.3: Aquaculture production planning to 2020 74

Table 3.4: Main indicators of Vinh Long banking industry by 2015 76

CHART Page

Chart 2.1: Economic structure of Vinh Long province in the period 2007-2011 31

Chart 2.2: Agricultural production value of Vinh Long province in the period 2007-2011 32 Chart 2.3: Number of livestock and poultry raised in the period 2007-2011 36

Comment


Agree Privacy Policy *