VBSP loans help Bat Trang farmers expand high value agriculture

Bat Trang commune, located in Hanoi, is cultivating over 650 hectares of land, with a focus on high-value agricultural production such as vegetables, flowers, ornamental plants, and specialty fruit trees. The Bat Trang Farmers' Union, in partnership with the Vietnam Bank for Social Policies (VBSP), is providing concessional loans to support these initiatives, with a total outstanding balance of $2.52 million.

These loans have helped 729 borrowers, with over $1.75 million allocated to an employment creation program and $540,000 for clean water and rural environmental sanitation. Since the beginning of the year, 162 farmer members have been able to access new loans totaling $639,200, enabling them to invest in production, develop local trades, and create employment opportunities.

The credit programme is based on the actual financing needs of the residents, with borrower selection conducted publicly and democratically. Additionally, Hanoi's Farmers' Support Fund provides further financing for flower and ornamental plant cultivation, safe vegetable production, and specialty fruit-growing models. The impact of this financial support is evident in the development of specialized production areas for safe vegetables, flowers, ornamental plants, and fruit trees, with safe vegetable yields ranging from 83 to 108 tonnes per hectare annually.

The positive credit quality, with no overdue or frozen debts and a 100% loan interest collection rate, demonstrates the effectiveness of this lending approach.