Leader Talk

High-tech agriculture project copes with hindrances of capital flow worth billions of dollars

By Ha Chinh August 01, 2017 | 06:06 AM GMT+7

Nearly VND33 trillion (roughly US$4.4 trillion) of loans for hi-tech agriculture have been disbursed, but the greatest obstacle hindering this capital flow has also surfaced.

Photo: Internet

According to the Governor of State Bank of Vietnam (SBV) Le Minh Hung, banks have pledged to lend VND120 trillion (roughly US$5.2 billion) and disbursed nearly VND33 trillion (about US$1.4 billion) to develop hi-tech agriculture. However, there are still some pitfalls related to mortgaging land-attached assets.

To be more specific, the property on the land whose rent is paid annually is not issued a certificate of ownership. Therefore, the mortgage is not accepted. Vietnamese Government has assigned the SBV and the Ministry of Justice to resolve this issue.

Meanwhile, some hi-tech agricultural enterprises rent land from farmers, who still own the certificates of land use rights of these plots. Thus, they cannot mortgage the rented plots.

In fact, hi-tech agricultural enterprises face innumerable land-related problems. Tran Le - Chairman of Tran Le Sakura Joint Stock Company – said, "Finding a land area large enough for farming is difficult, but developing our business is even more problematic. We have encountered huge bureaucratic obstacles when carrying out the organic farming projects in the regions."

Nguyen Quoc Hung – Director General of the Credit Department of the SBV – said that granting credit to hi-tech agriculture was a new direction, which meant there had been no precedents. Risks could incur while we carried out the projects that needed large investments.

Hung emphasized that hi-tech agricultural production facilities such as greenhouses, net houses,... had not been granted the certificates of ownership of assets on agricultural land. This had caused difficulties for enterprises to register the secured transactions and mortgage their assets for loans at banks.

Therefore, the Ministry of Natural Resources and Environment should quickly amend the regulations on granting the certificates of land use right, house and land-attached assets ownership to create favourable conditions for enterprises to register the secured transaction of bank loans.

Financing Southeast Asia’s energy transition

Financing Southeast Asia’s energy transition

Leader Talk -  1 month

The energy transition is bringing forth new challenges, particularly in refining financial systems.

Few countries are better placed than Vietnam for consistent robust growth

Few countries are better placed than Vietnam for consistent robust growth

Leader Talk -  2 month

Alex Hambly talks about investment opportunities in Vietnam following his appointment as chief investment officer (CIO) of VinaCapital.

The secret to employee retention

The secret to employee retention

Leader Talk -  2 month

As Furama-Ariyana Danang international tourism complex has just won the “Best Companies to Work for in Asia” HR Asia Awards 2024, TheLEADER talked with its HR and training director Nguyen Thi Minh Tam to find out more.

Young leader of Timor-Leste: Vietnam offers valuable lessons for growth

Young leader of Timor-Leste: Vietnam offers valuable lessons for growth

Leader Talk -  3 month

The young leader of East Timor emphasizes that Vietnam has a lot of development experience that East Timorese businesses can learn and cooperate with.

May the draft amendment of VAT law demotivate Vietnam’s export growth?

May the draft amendment of VAT law demotivate Vietnam’s export growth?

Leader Talk -  3 month

A prominent issue for many Vietnamese businesses concerns the proposed narrowing of the 0 per cent VAT rate for export services.

Vietnam in a new FDI shift

Vietnam in a new FDI shift

Leader Talk -  6 month

HSBC discusses Vietnam's role in supply chain relocation and outlined essential strategies for the country to enhance its appeal for attracting and retaining FDI.