Seafood processing and exporting companies in Mekong Delta provinces said the VND1 trillion provided by the Agriculture Bank of Vietnam (Agribank) is not sufficient for them to buy 300,000 tons of pangasius, website of the Vietnam Association of Seafood Exporters and Producers (VASEP) reported.
Ngo Phuoc Hau, chief of Executive of the An Giang Fisheries Im-Export JSC (Agifish), said companies in eight Mekong Delta provinces had asked for a urgent loan of VND1.85 trillion, but Agribank can supply only VND1 trillion.
Of which, Agribank’s branch in An Giang province was provided with VND200 billion, much lower than its need of VND450 billion.
An Giang Agribank said the provincial People’s Committee instructed it to lend VND165 billion to five local companies, including Cuu Long Co. Ltd, Viet An Co., Afishco Co., Agifish Co, and Navico Co., while the remaining of VND35 billion will be for its traditional customers.
Meanwhile, seven provinces in Can Tho have begged for a VND500 billion loan; and Hau Giang’s companies said they are in need of VND142 billion to buy catfish from local farmers.
However, the Vietnam Agriculture yesterday (June 5) reported that four out of six companies in An Giang refused to borrow money because they fear to buy fish at floor price of VND13,800 a kilo.
Local companies explained that with high lending interest rate of 18 per cent/year, excluding other fees, they can not buy fish for high prices.
Farmers said they still suffer losses if the fish is offered at VND14,000 a kilo.
Vietnam now has around 500 seafood processing factories, but they are running at only 50 per cent of full capacity due to material shortage. (Local sources)
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