Typhoon Yagi leaves well-off households empty-handed, crippled by debt

Reports from northern provinces, from Quang Ninh to Nghe An, show that 23,595 hectares of aquaculture areas and 4,592 seafood cages and rafts have been damaged or swept away by Yagi.

The typhoon waterlogged more than 200,000 hectares of rice fields, worth VND3 trillion, and damaged VND1.25 trillion of crops and fruit trees. The total loss suffered by livestock farmers was estimated at VND2 trillion.

However, the Ministry of Agriculture and Rural Development (MARD) said the figures were just an estimated loss as of September 18. The figures will be increasing as localities are updating new information about losses caused by the typhoon.

MARD Minister Le Minh Hoan said many farmers dreamed of changing their lives with marine aquaculture, but their achievements after tens of years have been swept away.

Large livestock farms have suffered heavy losses, and rice fields in Thai Binh, Nam Dinh, Ha Nam, and Ninh Binh have been devastated just before harvest. Vegetables and crops, which are the pride of Hai Duong and Hung Yen provinces, have been damaged. 

Assistance to farmers

Quang Ninh People’s Committee chair Cao Tuong Huy said the province immediately set to work to repair the damage caused by Yagi, helping farming households and businesses restart production.

Local authorities have provided financial support of VND180 billion in the first phase, restructured expense sources for 2024, and budgeted VND1 trillion to help people and businesses.

The provincial authorities have sent dispatches to commercial banks, requesting to help people and businesses suffering from the typhoon, with focus on easing loan interest rates, extending debt payment deadlines, and freezing debt. 

Quang Ninh has also asked banks to expand the beneficiaries of the preferential lending program, simplify procedures, and apply new lending policies to provide unsecured loans to farming households with no collateral. 

Huy stressed that the damages incurred by farmers are very serious and they need support from commercial banks under the instruction of the State Bank of Vietnam.

At an online conference which connected the central government and typhoon-stricken localities on September 15, Prime Minister Pham Minh Chinh listed six groups of tasks that need to be implemented to overcome difficulties in the post-storm period. 

Chinh requested a reasonable credit policy, and support for farmers in seedlings and fertilizers to help them overcome difficulties. He emphasized policies on freezing debts, unsecured lending, and the zero-dong credit package.

The Ministry of Finance (MOF) has been asked to design policies on reducing, extending and deferring tax, fee and charge payments, while the Bank for Social Policies will lend farming households and insurers to pay compensation for damages incurred by farmers.

SBV Deputy Governor Dao Minh Tu said the commercial banks are sharing difficulties with people and businesses after the typhoon and floods. Commercial banks have been asked to use their resources from profits and try to cut costs so that they can reduce lending interest rates, freeze debts, and restructure debt payments.

Huynh Van Thuan, deputy CEO of the Bank for Social Policies, said that the bank will extend debt payments and adjust debt terms for loans that are due.

After analyzing reports from localities about capital demand, the bank will build a plan to increase the credit growth rate in 2024 and arrange capital to implement the plan before submitting it to agencies in October 2024. It is estimated that the additional outstanding loans would be VND4.9 trillion.

Meanwhile, Agribank has promised a 0.5-2 percent per annum lending interest rate reduction applied to clients suffering from the typhoon and floods, and 100 percent remission for overdue debts (from September 6 to December 31), as well as loans provided during that time.

Deputy ministers of the Agriculture and Rural Development Ministry are meeting localities, enterprises and associations to discuss solutions to provide technical support, breeders, materials and animal feed to farmers.

Most recently, enterprises have promised not to raise selling prices of seeds and agricultural supplies, and promised to help farmers restore production and stabilize their lives. Businesses in agriculture have committed to give financial support of VND200 billion in cash, animal feed, breeders and seedlings.

Tam An - Pham Cong - Tuan Nguyen