HCMC — Vietnam will allow organic farming and circular economy projects to borrow up to 70% of their value without collateral, starting July 1, under a new government policy aimed at supporting sustainable agriculture.
The policy is part of Decree 156/2024/ND-CP, recently issued to revise credit guidelines for rural and agricultural development, reported the Government news website (baochinhphu.vn).
Under the new rules, individuals and businesses implementing organic or circular economy projects will be eligible for unsecured loans equal to 70% of the project’s total investment. In cases where projects are disrupted by natural disasters, disease outbreaks, or other force majeure events, borrowers may receive loan restructuring under the same provisions that apply to firms participating in value chain linkages.
The decree also adjusts lending limits for unsecured loans. Individuals and households can borrow up to VND300 million. Business households and partnerships may access up to VND500 million. Farm owners can borrow up to VND3 billion, while cooperatives and cooperative alliances may obtain loans of up to VND5 billion.
The regulation further stipulates that loans rescheduled due to objective difficulties will retain their current credit classification, avoiding a downgrade to non-performing status. Commercial banks may also issue new loans based on the borrower’s repayment capacity and the viability of their business plans. This aims to help borrowers maintain production and service existing debts alongside new ones.
Agriculture, together with forestry, aquaculture, industry, renewable energy, and construction materials, is among the sectors proposed for pilot implementation of circular economy models. A draft decree by the Ministry of Finance proposes additional support for selected projects, including access to green credit and government funding for up to 70% of vocational or business training expenses.
