Developing agricultural production loans at the Bank for Agriculture and Rural Development of Vietnam, Van Ban District Branch, Lao Cai Province

(iii) Lending through credit unions such as farmers' associations, women's associations, veterans' associations, and established credit organizations has concentrated customer sources, contributed to improving management efficiency, reducing workload for credit officers, and ensuring capital safety ratio. The branch always focuses on diversifying loan types while still ensuring credit quality. The branch also coordinates with organizations to help the poor and create conditions for them to use loans appropriately.

(iv) Regarding lending subjects: Agribank Van Ban lends to all subjects that are not prohibited by law, but in recent years, it has focused on the agricultural, livestock and trade-service sectors, as shown by the outstanding loans of these two sectors accounting for over 70% of outstanding loans for agricultural production. In addition, the Branch also focuses on investing in lending to the aquaculture sector to help households promptly purchase new animals and breeds with high economic value, helping to improve economic efficiency. This is completely consistent with the economic characteristics of the locality in the current period, as well as the economic development orientation of the district during this time.

(v) Regarding the lending efficiency of the Branch, through the data on the lending situation over the past 3 years, it can be seen that the lending for agricultural production has achieved high efficiency, the capital recovery rate is high, bad debt is always low, the scale and quality of loans are increasingly improved and expanded. Effective investment in loans also helps the business activities of the agricultural sector to gain high profits, the lives of farmers are significantly improved, the average income from agricultural production increases, contributing to the development of the local economy.

(vi) Based on the socio-economic development orientation of the district, the development orientation of bank credit for the agricultural production sector of Agribank Van Ban, the thesis has proposed groups of solutions for Agribank Van Ban to expand and improve the quality of credit for agricultural production loans to apply business requirements and better serve local economic development.

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2. Recommendations

2.1. For the Government, Ministries and branches

The Government needs to direct relevant Ministries and Branches to synchronously implement Decree 116/2018/ND-CP.

Continue to implement preferential policies on land use fees, value added tax, and corporate income tax in accordance with the spirit of Decrees 98/2018 and 57/2018 of the Government.

The Government needs to take measures to quickly deploy agricultural insurance on a large scale according to the content of Decree 58/2018 dated April 18, 2018 on agricultural insurance.

Have effective policies to manage prices and agricultural product consumption markets.

Implement synchronization in granting land use right certificates to people.

2.2. For Lao Cai Provincial People's Committee

Propose that the Provincial People's Committee direct the acceleration of the issuance of land use right certificates to households and farm owners; Coordinate with functional sectors to support farmers in developing projects and production and business plans; Plan for regional economic development, occupations, and seedlings... to be stable and sustainable; Promote scientific research and technology transfer in rural areas; Form and develop synchronously all types of markets to help farmers consume their products.

2.3. For Agribank

Strengthen training for staff.

Develop lending conditions and procedures in a streamlined manner, suitable to the accessibility capacity of farming households.

Improve the lending process in a strict direction, with the participation of a professional appraisal department.

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