Vietnam Govt Maintain Cheap Loans for Agro, Rural Area Development

The Vietnamese government will continue to provide interest rate subsidies on credit loans to buy machines, equipment, and input material for agricultural production and building materials for rural development from Jan 1 to Dec 31, 2010, the Government said on its website.

 

Under a recent decision issued by Prime Minister Nguyen Tan Dung, the government will carry out stimulus packages for agriculture and rural areas, which were launched in 2009, even though narrowing beneficiaries and lowering subsidies. Only rural residents living in communes, not wards or towns, will be given preferential credits to purchase building materials for constructing their houses.  

 

The government will continue to give interest rate subsidies to made-in-Vietnam products, including agro-machines, under 5-ton trucks; computers; fertilizers, pesticides and building materials.  

 

However, the subsidies, imposed on agricultural input and building materials, are halved to 2% per year.

 

The stimulus packages on agriculture and rural areas have helped numerous domestic peasants and enterprises to overcome difficulties, restore production and improve living standards.