Green credit provision strengthened in agriculture
The Ministry of Agriculture and Rural Development (MARD) is planning to coordinate with the State Bank of Vietnam in completing policies on preferential credit to support agricultural projects following value chains, applying high technologies and specialising in clean agriculture and production forest planting.
Of the 12 green areas in Vietnam, credit balance in clean agriculture accounted for 32%. (Photo: nongnghiep.vn)
Hanoi (VNA) – The Ministry of Agriculture andRural Development (MARD) is planning to coordinate with the State Bank of Vietnam in completing policies on preferential credit to support agricultural projectsfollowing value chains, applying high technologies and specialising in cleanagriculture and production forest planting.
Statistics from the central bank showed that as of the end of 2022, outstandingloans for green projects reached 21 billion USD, accounting for more than 4% ofthe total outstanding loans of the whole economy, and an increase of nearly 13%compared to the end of 2021.
In the 2017-2022 period, the credit balance of the bankingsystem for Vietnam's green fields had an average growth rate of more than 23%per year. Of the 12 green areas, credit balance in clean agriculture accountedfor 32%.
According to the Law on Environmental Protection, greencredit is one granted to an investment project that effectively usesnatural resources; responds to climate change; strengthens waste management; promotespollution treatment, environmental quality improvement; restores naturalecosystems; specialises in conservation of nature and biodiversity; and generatesother environmental benefits.
Tea production (Photo: nongnghiep.vn)
In September 2022, the MARD Minister issued a decisionapproving an action plan of the ministry in implementing the national strategyon green growth in the 2021-2030 period, aiming to promote agriculturaldevelopment towards ecological, organic, circular, low carbon, and energy andnatural resources efficient direction, heading to a carbon-neutral economy in2050.
Over the years, many large-scale firms have invested inorganic and circular agriculture in all areas of breeding, cultivation andaquaculture. Agriculture is one of the areas with the highest demand in greencredit.
Along with support from State agencies, experts advised businesses to seek measures to effectively accessgreen credit resources by clarifying their projects’ efficiency inenvironmental improvement as well as sustainable production solutions that arebeneficial to the environment./.
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Of the 12 green areas in Vietnam, credit balance in clean agriculture accounted for 32%. (Photo: nongnghiep.vn) 
Tea production (Photo: nongnghiep.vn) 
