The State Bank of Vietnam (SBV) has launched a program offering low-interest loans to farmers for developing one million ha of high-quality, low-emission rice cultivation in the Mekong Delta region by 2030.

The SBV has instructed credit institutions to offer farmers and rice producers a preferential loan interest rate at least 1% lower than the rate currently applied to customers of the same loan term, or in the same customer segment.

The credits are intended to help meet the short, medium, and long-term capital needs for all stages of the rice supply chain, from cultivation, production and purchasing to processing and consumption.

The credit institutions are required to balance their capital sources and reduce costs to offer the preferential rate.

The credit program will be implemented in two phases.

In the first phase from now through 2025, the program will be piloted by the Vietnam Bank for Agriculture and Rural Development (Agribank).

In the second phase, from the end of the pilot phase to 2030, the program will be implemented by other banks and credit institutions.