Conference on livestock sector hears of credit package and other support coming for beef and dairy industry.
The Bank for Investment and Development of Vietnam (BIDV), ANZ Vietnam, and Meat&Livestock Australia recently organized the “Vietnam - Developing a Modern Integrated & Sustainable Beef and Dairy Industry” conference on October 9 in Hanoi.
Vietnam is integrating deeper internationally through free trade agreements (FTAs) with major economies and in particular with the TPP, the conference heard. During the integration process the livestock sector, including the beef and dairy industry, welcomes the opportunity to grow by accessing global value chains to expand markets. Receiving modern technologies and reducing investment expenditure accelerates the sector’s process of restructuring.
Integration also presents major challenges, however, such as the gap between the development of Vietnam’s livestock sector and that of developed countries, greater competition as tariff barriers are removed, limitations on input quality, including livestock breeds, and the high cost of Vietnam’s livestock products.
To provide support to the sector, Chairman of BIDV Tran Bac Ha the bank will grant short-term and long-term lending with many preferential policies in the 2016-2020 period to enterprises involved in developing the beef and dairy industry. BIDV is also willing to cooperate with related units to research and analyze the prospect for the industry as free trade agreements come into effect. It will also support local government departments to identify and adopt suitable policies and consult with enterprises that plan to become involved in the industry.
BIDV also committed to creating a credit package for the agriculture sector, of some VND25 trillion ($1.11 billion), for short term lending, which would account for about 3-5 per cent of its outstanding short-term credit. In the long term BIDV has also set aside VND80 trillion ($3.57 billion) in credit for the agriculture sector to 2020, focusing on agriculture projects using high technology. For the beef and diary industry BIDV has created a financial package totaling VND15 trillion ($669.45 million) with a range of preferential policies.
Mr. Dennis Hussey, CEO of ANZ Vietnam, told the conference that Vietnam is developing its beef and dairy sectors globally. This promises to create many jobs in rural areas, provide high-quality food for consumers, and make Vietnam an exporter of meat and milk in the region. ANZ is therefore delighted to partner with BIDV and the MLA in bringing leading industry experts in the sector to the country to provide support.