Difficulties in deploying OCOP production and business loans
Through actual implementation, obstacles have been revealed that prevent bank capital from reaching many customers. Individual customers and business households that produce OCOP products are often small-scale, the application of new techniques and advanced technology is limited, leading to customers often having little need for loans. Cooperatives are subject to OCOP certification, so members of cooperatives are not granted separate OCOP certificates, leading to difficulties in borrowing capital for production for each member.
In addition, cooperative units are small in scale, have uneven development, financial capacity, low-value assets, no collateral, mainly rented premises, and low-tech machinery. Queen; The capacity of the head of the cooperative to operate does not meet the requirements; The plan/project lacks feasibility and effectiveness; In particular, the financial capacity of cooperatives and the capital contributions of cooperative members do not meet the requirements, so the majority of cooperatives are not eligible to access bank credit capital.
Another problem is that the statistical and accounting regime still has many limitations, hesitation in being transparent about the financial business situation with the bank, lack of financial invoices for buying and selling goods, so the bank does not have enough opportunity to basis for loan evaluation and appraisal.
Although Decree 55/2015/ND-CP has a preferential policy mechanism on securing loans with assets for cooperatives and cooperative unions, loan amounts not secured by assets can range from 1 billion VND. up to 3 billion VND/customer, however, the sanctions for cases where customers intentionally do not pay their debts are not clear, making it difficult for banks to handle debt recovery in cases of unsecured loans. secured by assets.
Providing preferential capital, promoting production and business development
In the context of the economy still facing many difficulties and challenges, to promote lending to customers producing and trading OCOP products, Agribank has stepped up the implementation of lending programs of the Government and banks. Loan programs with preferential interest rates in business fields for businesses, cooperatives, households, and individuals producing and trading OCOP products can be easily accessed.
Up to now, Agribank has provided more than 500 billion VND in credit capital for customers producing and trading OCOP products. At Agribank, customers who produce and trade OCOP products can borrow capital without collateral with a loan amount of up to 1 billion VND (for cooperatives and farm owners) or up to 80% of the project. Production and business plans for applying high technology in agricultural production (for agricultural enterprises applying high technology) or participating in preferential interest rate loan programs to serve production activities, business for individual and corporate customers. From February 1, 2024 to December 31, 2024, Agribank spent VND 2,000 billion to implement a preferential credit program for individual customers investing in production and trading of OCOP products with a maximum lower interest rate of 2.0%/ year compared to Agribank's lending interest rate floor.
Hoai Trung - Phu Tho Tea Company Limited is a typical enterprise with success with OCOP products thanks to bank loans. As the first and only enterprise in Phu Tho province to meet 5-star OCOP standards for tea products, the enterprise has had an extremely difficult and strenuous process of building and developing. Agribank has always accompanied businesses for the past 25 years, from the initial loan capital of only 9 million VND, to now the outstanding debt at the bank has reached 10 billion VND. Thanks to Agribank loan capital, Hoai Trung Tea Company Limited has changed and upgraded production processing machinery 5 times, thereby improving product quality and significantly improving revenue. Ms. Bui Thi Mao - Director of Hoai Trung Tea Co., Ltd. shared: Thanks to Agribank's capital support, we have boldly laid the first foundation for the product "Hoai Trung Premium Dinh Tea", up to now that capital is has been implemented extremely effectively, the company owns nearly 100 hectares of tea according to organic standards with unique flavor. To develop like today, I very much appreciate and thank the State Bank of Phu Tho province and Agribank of Phu Tho province for always accompanying, giving priority to lending to the company, reducing interest rates, and helping us get OCOP products. Meets current national 5-star standards.
In order to provide credit capital for the economy and serve production and business activities, Agribank has proactively and flexibly focused on providing capital for three main growth drivers: consumption, export, investment and Prioritize 5 key areas including export, agriculture, high technology, small and medium enterprises, and supporting industries.
Regarding the agricultural and rural sector, Agribank continues to focus credit capital to serve this sector according to Decree 55/2015/ND-CP of the Government, implementing specific credit programs for a number of people. Strong agricultural products such as rice, coffee, seafood,... linked loans for key products with high commercial value, spillover effects on the economy and numbers farmer households to implement the agricultural sector restructuring project approved by the Prime Minister.
