Help on the Way for Vietnam's Pangasius Industry
The VDB's aim is to help large and small-scale fish farmers and enterprises with their own farms to…The VDB's aim is to help large and small-scale fish farmers and enterprises with their own farms to hold on to business and reach the production of 800,000 tons over the last eight months of 2012; and support seafood companies keep finished products in storage to get higher export prices.
The bank will also assist healthy companies to buy other cash-strapped ones in an effort to avoid bankruptcies, ensure in-time payment in purchasing raw materials and export, as well as remain jobs for workers. Its financial aid aims to companies with pangasius processing plants and having export contracts.
Companies owning large-scale fish farming area or completed production chain; large-scale fish farmers having contracts with processors; small-scale farmers linking closely with processors; and others in the production chain.
In the last eight months of the year, Vietnam pangasius industry expects to produce 800,000 MT of raw fish. In which 50% of fish will come from farms owned by fish processors, 20% from large-scale farmers and the remaining 30% from small-scale suppliers. According to VASEP, fish companies need of VND10,000
billion to buy 400,000 MT of pangasius supplied by farmers at an estimated price of VND25 million per MT.
VASEP has urged VDB to provide fish processing companies with a financial rescue package valued VND 10,000 billion with loan term of six months and preferential rate of below 10%. The borrowers will receive money along with their purchasing time. Financial package for enterprises having their owned fish farms
is estimated to total nearly VND 7,000 billion, in which VDB would offer an amount of VND5,000 billion, equal to 70 percent with eight month loan term.
VASEP asked VDB to lend VND 5,000 billion in favor processing companies. The bank was also called to help circle bad debts, re-buy these companies' debts in other banks, as well as support companies to store products in order to boost export prices. VDB is a policy bank with its goals of sustainable development. So
far, it has made an active and important contribution to the creation and development of Vietnam pangasius industry and remained a reliable partner of pangasius business community.
