March 29, 2004

Vietnam Propose US$32 Million Package For Poultry Industry

The Vietnamese Ministry of Finance has submitted a US$32 million financial plan for the ailing poultry industry. The proposal, which will include proposed delayed payment dates for bank loans and financial support as part of a scheme to help ease the debt burden on farmers hard hit by the recent bird flu outbreak.

The scheme to restore poultry production in Vietnam would totally cost 500 billion VND (US$32.5 million), the Ministry said, adding that it would take from two to three years for the industry to resume normal operations.

Around fifty per cent of the amount will come from the central budget, it revealed.

Measures proposed by the Ministry include delaying payment date of bank loans to between 6 and 12 months and financial assistance equaling up to 50 per cent of interest rate to be paid by debtors.

Subsidies would also be available for purchasing of fowl breeds by farmers as well as food for breeds for a three month period starting from December last year.

The Agriculture Department is scheduled to supply between 220-240 million of breeds free from the disease by 2005, according to the Department Director, Le Quoc Hung.

On March 24, thirty out of Vietnam's 65 provinces and cities were declared free from bird flu.

More than 38 million poultry, or 15 per cent of the Vietnam's flock were slaughtered due to the epidemic.