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Improving Agricultural Value Chain Financing: A Case Study of Seng Cu Rice Chain in Lao Cai Province, Vietnam
1Gembloux Agro-Bio Tech, University of Liège, Belgium; Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Trau Quy, Gia Lam, Hanoi 131000, Vietnam
2Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Trau Quy, Gia Lam, Hanoi 131000, Vietnam
3Gembloux Agro-Bio Tech, University of Liège, Belgium
Received: Jun 12, 2020 /
Revised: May 17, 2021 /
Published: Mar 5, 2021
Main Article Content
Abstract
Nowadays, the value chain financing (AVCF) is considered as an effective agricultural financing approach in the world, however, its prevalence is still limited in developing countries, like Viet Nam. This paper analyses the financial gap between the demands and the actual credit obtained of the Seng Cu (SC) rice chain participants in Lao Cai. Cross-sectional data were collected from 160 face-to-face interviews with SC rice producers and from in-depth interviews with 31 other stakeholders involved in the chain (demand-side) and the representatives of district-branch banks (supply-side) in 2016 - 2017. Overall, almost chain actors had high financial demands, especially upland rice producers and the leading chain actor (TPC). However, they faced many credit constraints related to the strict risk-avoidance strategy and the collateral requirement of banks. Even the SC rice chain confirmed its high potential and many supportive linkages among them developed, the decision-making of banks on credit disbursements still depends on the individual capability of each chain actors, not the entire chain. Thus, the recommendations for policymakers, producers, and agribusiness are suggested to enhance the financial sources going in the chain and the effectiveness of chain actors in the locality.
Keywords:
Agricultural value chain finance, Seng Cu rice, rural finance, Lao Cai province
Article Details
How to Cite
Lam, B., Cuong, T., Hao, L., & Lebailly, P. (2021). Improving Agricultural Value Chain Financing: A Case Study of Seng Cu Rice Chain in Lao Cai Province, Vietnam. Vietnam Journal of Agricultural Sciences, 3(3), 712-725. https://doi.org/10.31817/vjas.2020.3.3.05
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References
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