Vietnam calls on banks to enhance financing for Mekong Delta rice industry

Banks are asked to ensure no delays or denials in loan access for those with good business plans.

Vietnam’s central bank has asked its banks to “proactively supply credit” for rice production, processing, and export in the Mekong delta.

In a statement, the State Bank of Vietnam (SBV) asked commercial banks to balance their capital resources to meet the credit needs of individuals and businesses involved in the rice business.

“The banks must ensure that individuals and businesses with good business plans, complying fully with legal requirements, do not face delays or denials in loan access due to cumbersome procedures,” the central bank stated.

SBV also asked banks to consider increasing credit limits, extending loan terms, and facilitating the expansion of medium and long-term credit to support investment in storage facilities, machinery, processing and preservation equipment.

It also asked banks to promote reforms and simplify loan procedures and documentation, and collateral requirements to support the seasonal nature of rice production.