21-7-2023 (HANOI) In response to an export slowdown in Vietnam’s forestry and fishery sector, the country’s central bank has announced a credit package worth 15 trillion Vietnamese dong (approximately 630.2 million U.S. dollars) to support businesses in these industries, as reported by local media on Friday.
The credit package, set to be available until June 30 next year, aims to assist firms with projects or plans that serve production and business activities in forestry and fishery areas, according to Vietnam News daily.
Eligible businesses will enjoy lending interest rates denominated in Vietnamese dong, which will be at least 1-2 percent lower than the average interest rates offered for short-term, medium-term, and long-term deposits by commercial banks.
Moreover, participating commercial banks will waive and reduce service fees for customers joining the program, adhering to legal regulations and the size of the bank’s operations, as mentioned in the newspaper report.
At present, a total of 12 commercial banks have registered to partake in the credit package initiative.
The move comes as Vietnam faces a decline in export value for main forest products, dropping by 28.2 percent to 6.5 billion dollars in the first half of this year. This decrease is attributed to the tightening of spending and reduced consumption of wood products by European and U.S. consumers, leading to a decline in new orders, as stated in the newspaper.
Similarly, seafood exports have also experienced a significant slump, decreasing by 27.4 percent year-on-year to 4.13 billion dollars during the same period. Within this sector, shrimp exports witnessed a decline of 32 percent to 1.56 billion dollars, while the tra fish export saw a drop of 40 percent to 840 million dollars in the first half of 2023.
The credit package initiative is expected to provide much-needed financial support to businesses in Vietnam’s forestry and fishery sectors, enabling them to navigate the challenges posed by the current export slowdown and fuel their production and business activities during this critical period.
