June 16, 2008

Vietnam's planned loan for catfish farmers fail to revitalize sector

  
  
The planned loan of VND1 trillion for Vietnam's catfish farmers has so far been unsuccessful, observers said.

Fish exporters have been reluctant to take out the loans earlier this year due to interest rates climbing too high.

In April, Vietnam's government also limited the amount of foreign currency loans banks could give to save foreign reserves for importers.

So far, fish processors and exporters have not had enough money to buy fish, while fish breeders have been unable to sell their huge supply.

Mekong Delta fish processors borrowed more than VND24 billion since the beginning of the month, the Ministry of Agriculture and Rural Development (MARD) said last week.

Meanwhile, in some provinces like Dong Thap, Tien Giang and Hau Giang farmers were not able to obtain emergency loans.

Officials said the fish farmers in these provinces could not afford to feed their fish.

US$1 = VND16,605 as of June 16, 2008