HDBank Increases ‘Green’ Credit to Popularize Vietnamese Rice Globally

On March 13, 2024, in a significant move to advance Vietnamese rice in the global market, the HCM City Development Joint Stock Commercial Bank (HDBank) announced an increase in loan limits and the promotion of lending. This strategic financial support is aimed specifically at the rice production and export value chains. HDBank has undertaken this initiative to aid in the globalization of Vietnamese rice, a staple that is increasingly becoming synonymous with quality and sustainability.

At the forefront of this initiative is the introduction of HDBank Rural Services at the Vietnam Farmers Union’s eighth congress in December 2023. This comprehensive financial solution combines smart technology with a 0% interest rate loan program tailored for the agricultural sector, focusing particularly on rural areas.

The move comes in direct response to Prime Minister Phạm Minh Chính’s Directive No 10/CT-TTg, issued on March 2, 2024, which emphasizes the development of sustainable, transparent, and effective rice production, trading, and exporting practices. As a part of this directive, the State Bank of Vietnam is required to facilitate credit programs that promote collaborations between cooperatives and businesses for high-quality, low-carbon rice production in the Mekong Delta region.

HDBank has committed to disbursing loans nearing VND5 trillion (approximately US$202 million) to Lộc Trời Group Joint Stock Company starting March 2024. This substantial financial backing is expected to enhance the value chains within the rice industry, benefiting a wide array of stakeholders, from fertiliser producers to distribution agents and farmers in the Mekong Delta.

The financial endeavors by HDBank are a testament to the bank's commitment to green capital, aiming for sustainable agricultural development that complies with strict international standards, including environmental responsibility. This initiative not only aligns with achieving higher standards in production and business but also significantly contributes to the Vietnamese rice industry’s position on the global stage.