policies for preferential subjects, with close supervision and appropriate sanctions for the right regime and the right subjects to best promote the role of preferential policies, limit the negative impacts of preferential policies such as dependence and waiting for state policies without the will to improve. Supplement interest rate incentives for value chain lending models, linkage models, high-tech agriculture to move towards modern agricultural development and support to improve farmers' lives.
- The Government needs to direct departments, branches and localities to speed up the process of granting land use right certificates to people, especially for gardens and fields that people have cleared and used for many years, and quickly resolve problems and errors in documents and procedures related to land use right certificates so that people are eligible to borrow capital according to regulations.
- The State promotes the rapid formation of asset valuation agencies, credit information centers, and credit consulting centers.
Currently, the banks almost always undervalue the collateral assets under their fair value, partly due to the subjective intention of the bank, partly due to the limited level of appraisal and asset evaluation of bank staff, and furthermore, the valuation bases between banks are not consistent, causing difficulties for customers borrowing capital. Therefore, the establishment of an asset valuation center with unified management and adjustment by the state is extremely necessary.
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- Simplify procedures for granting certificates of high-tech agricultural enterprises ; take measures to support enterprises and individuals who need to invest in high-tech agricultural production to carry out investment procedures in accordance with the provisions of law . Accelerate the operation of State guarantee funds, especially the National Technology Innovation Fund, to create additional support mechanisms for loan guarantees for organizations and individuals producing high-tech agriculture who need to use loans from commercial banks. Arrange full and timely payment of state budget support to banks and borrowers (interest not collected during the period of
debt forgiveness, debt that must be written off for customers at risk, agricultural insurance premium support money, interest rate difference support money for investment projects in high-tech agriculture...).
3.4.2. For the State Bank
- The State Bank needs to play a macro-management role in providing general and general orientation strategies for commercial banks. The State Bank must closely monitor the operations of commercial banks, but also needs to ensure independence and autonomy, so that commercial banks can flexibly adapt to the market.
- The State Bank needs to have solutions to encourage and attract credit institutions to participate more in lending for agricultural and rural development through support policies for credit institutions such as: reducing required reserves, increasing recapitalization for credit institutions participating in lending in this field, even though their agricultural and rural lending ratio is still low. The rural financial market has high lending costs while the amount of each loan is small, so the profits for credit institutions are not high, so the State Bank needs to issue additional support policies to reduce bank costs when granting credit to the agricultural and rural areas, such as considering exempting or reducing CIC information access fees for some cases of lending for agricultural and rural development and new rural construction, especially low-value loans such as VND 100 million or less.
For credit institutions that have been lending in this sector, the State Bank should continue to direct these credit institutions to simplify loan procedures, flexibly adjust lending conditions, and mortgage conditions to suit agricultural production conditions in each locality. In addition, direct credit institutions to increase access to enterprises operating effectively in the agricultural sector, coordinate with local departments, branches, and organizations to select effective production models for lending, control loans and debt collection, and link credit investment with the implementation of socio-economic development programs and projects in the locality, especially for communes in the new rural construction program.
- To encourage credit institutions to be more bold in developing the financial market.
rural areas, is the issue of risk reduction for loans of credit institutions in the field of production and trading of agricultural products. Meanwhile, the South Central region is a locality with the majority of agricultural sector, which is heavily affected by natural disasters such as drought, floods and epidemics. Therefore, agricultural insurance is extremely important for farmers, contributing to ensuring the stable and sustainable development of the province's agriculture... However, in the past, agricultural insurance activities were piloted under Decision No. 315/QD-TTG dated March 1, 2011 of the Prime Minister but have not yet operated effectively with a small and scattered scale, not commensurate with the position of the country's agriculture, there are still many problems and have not been widely implemented.
Therefore, in order for credit institutions to participate in the rural financial market safely, the State Bank needs to strengthen coordination with agencies at all levels such as the Ministry of Finance, the Ministry of Agriculture and Rural Development, etc. on the development of agricultural insurance. Thereby, limiting risks to agricultural and rural lending by credit institutions. From there, encouraging credit institutions to participate in lending to agriculture and rural areas.
- Organize the implementation of issued documents widely, to the grassroots level, bank staff, organize training and coaching on professional documents.
- The State Bank also needs to continue to attract capital sources, seek capital sources to support people from international organizations and non-governmental organizations distributed through banks.
- The State Bank needs to improve the quality of operations and strengthen the infrastructure for the credit information center so that information is regularly updated and provided to commercial banks. Research and develop a system of indicators reflecting the credit quality of credit institutions as a tool to manage the relationship between credit growth and credit quality.
- In the context of the lack of coverage of formal credit institutions to meet the needs of people in rural and remote areas, the expansion of informal financial services is necessary. However, to limit the negative aspects of informal credit activities and promote positive effects, the State Bank needs to increase
Strengthen inspection and supervision of the transparency of non-bank financial service providers operating in rural and mountainous areas, paying special attention to small and low-income customers. Develop rules and standards to regulate specific activities of small-scale financial service providers and payment intermediary service providers; develop supervision principles for these organizations and ensure that the State Bank's payment and supervision regulations are implemented effectively and synchronously.
- Actively support credit institutions in carrying out procedures to secure loans with assets formed from loans of projects and business plans applying high technology in agriculture; support banks in managing assets securing loans as well as handling assets securing loans to recover debts when loans are at risk.
3.4.3. For Departments, agencies, branches and local authorities
- Provincial People's Committees need to promptly direct local departments, branches and sectors to proactively develop projects, plans and effective production and business models, exploiting the potential and strengths of each locality to serve as a basis for credit institutions to invest capital.
- Regularly pay attention to leadership and direction of policy credit activities and continue to effectively implement Directive No. 40-CT/TW dated November 22, 2014 of the Central Party Secretariat, Decision No. 401/QD-TTg dated March 14, 2016 of the Prime Minister. Focus resources to increase capital sources for lending to poor households and other policy beneficiaries. In addition to additional capital from the annual local budget, the Vietnam Fatherland Front Committee of the province, mass organizations, socio-political organizations, departments, branches, enterprises and individuals in the province deposit idle money and unused funds of the unit into the Social Policy Bank to supplement capital sources for lending.
- The South Central provinces need to urgently and synchronously implement policies issued by the Government to encourage investment in production and business in the agricultural and rural sectors such as Decree 57/2018/ND-CP dated April 17, 2018 on
mechanisms and policies to encourage enterprises to invest in agriculture and rural areas; Decree 58/2018/ND-CP dated April 18, 2018 on agricultural insurance; Decree 98/2018/ND-CP dated July 5, 2018 on policies to encourage the development of cooperation and association in production and consumption of agricultural products; Decree 109/2018/ND-CP dated August 29, 2018 on organic agriculture; Decree 116/2018/ND-CP dated September 7, 2018 amending and supplementing a number of articles of Decree 55 on credit policies for agricultural and rural development.
- The South Central provinces need to urgently and synchronously implement policies issued by the Government to encourage communication, dissemination, and improve farmers' understanding of the characteristics and requirements of doing business in the integration period, train farmers to comply with laws, conventions, and international practices, change their awareness and thinking, and gradually abandon the habit of spontaneous, small-scale production to large-scale, highly efficient, sustainable agricultural commodity production, doing business under contracts, and in association. Continue to promote the implementation of "land consolidation"; replicate pilot models of land accumulation with links with enterprises in production and product consumption; focus on transforming the structure of crops and livestock towards concentrated commodities and linking production with processing and product consumption according to the value chain; In addition, it is necessary to innovate and develop appropriate forms of production organization that are capable of providing raw materials for businesses, creating favorable conditions for local farmers to develop brands from the province's special seedlings. Encourage the establishment of effective cooperatives to promote linkages and management.
- Synchronously develop rural socio-economic infrastructure such as: traffic system, irrigation, power grid, continue to increase the rate of mechanization of production stages to liberate labor, reduce investment costs, increase economic efficiency, gradually form modern agriculture, focus on investing in processing technology, post-harvest preservation and product quality management, strengthen the implementation of trade promotion, brand building, market search..., agricultural production according to high-tech and large-scale models to produce large volumes.
Goods can meet the demand, and at the same time, close the production to consumption stage to create favorable conditions for the province's agricultural products to be competitive with domestic and foreign goods. Continue to support businesses and people with market information, collect information, research and make forecasts on domestic and world market supply and demand for agricultural products so that people can make the right investment and production decisions. Strengthen the relationship of signing contracts to expand the market and regional linkages to help farmers consume products easily.
- Strengthen policies to encourage enterprises to invest in agriculture and rural areas; create maximum conditions for people and economic organizations to borrow credit capital to serve economic development, support policies on seeds, crops, mechanization, agricultural extension, etc.; at the same time, encourage farmers and enterprises to link production and consumption, create conditions to attract and support the development of enterprises investing in production, processing of agricultural, forestry, fishery products and occupations to solve rural labor problems.
- Continue to develop the collective economy in the provinces in the spirit of the Resolution of the 5th Central Conference, Session IX, organize innovation and development of cooperative economy and cooperatives in many diverse forms, suitable to the needs and voluntary spirit of each individual and household; consolidate and establish new cooperatives, especially production and service cooperatives for production, processing and consumption of agricultural products, truly being the "locomotive" and "midwife" for farmers. Improve the capacity of organizing offshore fishing combined with investment in aquaculture infrastructure to meet the requirements of intensive farming, while developing processing and logistics services for the fishery. Develop multi-purpose cooperatives with the role of promoting the process of land accumulation, concentration and deep specialization towards commercialization in agriculture. Cooperatives provide essential services to farmers such as credit, risk insurance, agricultural extension, technology transfer, product consumption, collective use of machinery and equipment on the principle of mutual support. Agricultural cooperatives mobilize capital from members with idle money and then lend it to members in need for production and business.
Cooperatives are also places to receive loans and interest rate support from the Government to ensure the provision of long-term capital with low interest rates for agricultural production members. In addition, agricultural cooperatives also perform invoice discounting, legal guarantees, domestic exchange transactions and foreign exchange transactions.
- Local Party committees and authorities at all levels and socio-political organizations need to enhance their roles and responsibilities in statistical work, review policy subjects, coordinate more closely with the Bank for Social Policies in improving the quality of policy credit activities, mobilizing, propagating, guiding the poor to use capital for the right purposes and effectively, creating savings habits, raising awareness of debt repayment, effectively integrating agricultural, forestry and fishery extension programs with policy credit activities. Rural people with limited information conditions, slow ability to grasp information, therefore, commune and village authorities and local associations need to explain and propagate more widely about policies and information on loans from banks in the area so that farmers, especially those in remote areas, ethnic minority areas, can promptly grasp the policies, have a deeper and more complete understanding of the bank's loan policies and regulations of credit institutions on lending to the agricultural, rural and new rural construction sectors, thereby helping borrowers have more awareness in borrowing capital as well as choosing credit institutions suitable to the actual conditions of each customer.
- Local authorities in villages and hamlets also need to regularly organize public consultation meetings, in coordination with banks to understand the needs, aspirations and difficulties of customers, and from there propose support solutions.
- Cadres of Associations and unions at all levels should strengthen capacity building, including trust operations and knowledge of organization and management, so that they can coordinate well the establishment of groups and organize training well for lower-level Associations and unions and lending groups. Local authorities and associations and unions at all levels need to closely coordinate with credit institutions participating in the rural credit market to train specialized staff of lending groups in trust operations, especially good coordination in
Inspection and supervision of loan use. The entrusted officers need to closely monitor the Loan Groups managed by their Association to ensure that the urging of principal repayment and collection of loan interest are carried out effectively, and need to actively assist credit institutions in recovering and resolving overdue and bad debts.
- Social organizations coordinate with the Department of Agriculture and Rural Development, the Center for Agricultural Extension, and the Center for Fisheries Extension to organize meetings to exchange and learn from each other's production experiences. At the same time, members of the association can support each other with capital for production such as: seedlings, breeding animals, etc. For households that do business effectively, they need to share their experiences with other members to increase their income and improve their living standards. The fact that women's associations, farmers' associations, etc. help borrowers use capital effectively is really meaningful because in many localities, many borrowers (especially poor households, households with special difficulties, etc.) do not know how to do business (technical knowledge and management knowledge of borrowers are very limited), so they use capital ineffectively, do not make a profit, and therefore cannot accumulate money to repay the principal.
- Cadres of mass organizations, village and commune cadres need to have a sense of responsibility, be fair and clear-headed in confirming the reality, the right beneficiaries of preferential policies of the state, and those who are eligible for loans to ensure that loans are transferred to the right beneficiaries and ensure capital recovery for credit institutions. Enhance the role, responsibility and effectiveness of Party committees in statistics and review of poor and near-poor households to create conditions for these subjects to borrow capital in a timely manner.
- The Department of Agriculture and Rural Development and the Department of Industry and Trade actively coordinate to find solutions to support investment capital as well as planning for agriculture, rural areas, production, processing, and purchasing of agricultural products, creating favorable conditions for farmers to access capital in the global value chain of Vietnamese agricultural production, increasing the added value of agricultural products, creating a premise to improve farmers' income and life and build new rural areas. Build a model to provide inputs for the agricultural sector, ensuring product quality, appropriate prices, and timely harvests, so that farmers can confidently invest in products.