May 4, 2012

Vietnam bank to offer US$100 million loans to boost seafood exports

In order to boost exports of three major agricultural and seafood products, the Bank for Investment and Development of Vietnam (BIDV) will provide a soft credit package worth US$100 million for individuals and companies in the Mekong Delta region.

Of the sum, VND1 trillion (US$48.1 million) will be set aside as lending to stimulate exports of pangasius fish, the newspaper reported Thursday (May 3).

The credits are expected to be disbursed within this quarter, said BIDV Chairman Tran Bac Ha at a conference in Can Tho City last Friday (Apr 27).

"BIDV will raise the ratio of outstanding loans to the Mekong Delta provinces to 12% of the total, or VND70 trillion (US$3.4 billion), by 2015, three folds higher than the VND22 trillion (US$1.06 billion) recorded in the year-ago period," Ha noted.

The Mekong Delta region is known as the biggest exporter and producer of pangasius fish and rice in Vietnam.

The region generated up to 18-19% of the country's GDP a year, considerably contributing to the national economic development. However, they noted, investment amounts into the region so far have not matched potential.

Total investment capital poured into the area only accounted for 16% of the country's total in 1999-2000. Meanwhile, the 2000-10 period saw a meagre VND625 trillion (US$30.2 billion) invested into the region despite the presence of several investment policies for regional development.