The Hanoi Agricultural Promotion Fund has provided loans and support to many local farmers to expand production and promote agricultural development in the capital, according to Vu Thi Huong, Director of the Hanoi Agricultural Promotion Center.

The center is the only unit to implement the model of an agricultural promotion fund across the country, Huong said, adding that the fund is of great significance as it creates another financial channel to help farmers get preferential loans to expand production.

"Hanoi has many advanced agricultural production models that bring high economic efficiency. However, it is very difficult to implement them because farmers do not have much money to afford production. The Hanoi Agricultural Promotion Fund, established in February 2002, has been effective in helping farmers," Huong said. 

Hoi Huong Vineyard in Hanoi’s suburban district of Dan Phuong has so far developed effectively and attracted many visitors. Photo: Thien Tam

Since its establishment, the fund has provided loans of more than VND213 billion (US$9.1 million) to more than 4,300 households on the basis of maintaining the initial capital and not aiming for profit. The loan repayment period does not exceed 36 months, and recipients repay their loans only at the end of their contracts, allowing them to take the initiative in their production plans.

So far, the fund has disbursed money to some concentrated production areas, including the cattle breeding area in Ba Vi District, aquaculture areas in Thanh Tri and My Duc, poultry breeding areas in Dong Anh and Chuong My, and flower and bonsai growing areas in Tu Lien and Me Linh, among others.

In 2022, loans will be prioritized for concentrated production areas, production models in new rural communes, and vocational training. The fund will focus on households, units and enterprises that supply inputs and consume products.

“Over the past time, the fund has become a real companion of farmers and an effective financial channel that has helped farmers gradually develop large-scale production models and create agricultural products valued at billions of Vietnam dong,” Huong said.

The fund has also provided jobs for tens of thousands of workers, each of whom can earn about VND4-5 million ($170-213) per month. The product value of projects financed by the fund has also increased by 10-30% compared to the previous period.

At present, farmers have a great demand for loans. Therefore, the city is expected to provide more access to capital, contributing to improving farmers' living standards in the period 2021-2025, Huong added.

She stressed that the Hanoi Agricultural Promotion Center should be the leading center to help farmers apply technology in agricultural production, stop burning straw, and stop polluting the air, soil, and water with backward cultivation practices.

The "river fish in pond" farming model in Hanoi’s Quoc Oai District brings high economic efficiency. Photo: Anh Ngoc/The Hanoi Times