(VOVworld) – HCM city has been providing local farmers with loans to increase their production as part of the national target program on new rural development. Thousands of farming households have escaped poverty thanks to the city’s fund to support farmers.

The family of Ms. Tran Thi Phai of district 9 was almost a poor household 5 years ago. They borrowed 1,500 USD from the city’s farmers’ association to grow organic vegetables at home. It was difficult in the beginning to seek outlets for their products but now they supply the market with approximately 18 tons of vegetables, earning 3,500 USD a year. Phai said: “I hope that the Farmers’ Association will increase loans to help farmers expand their production and improve product quality.”

Mr. Vo Van Le of Hoc Mon district borrowed 1,000 USD to buy two cows. After 4 years, his cow herd grew to 6 worth 5,000 USD in total. Le said: “I’ve sold the calves to clear my debts. I am now much better off.”

HCM city’s fund to support farmers was established in 2006 with an initial budget of 1 million USD, which has increased to 5 million USD at present. It has given loans to 24,000 local farming households, helping them escape poverty.

A number of economic models for farming households have been established in HCM city including raising cows and ornamental fish, growing organic vegetables, and producing bamboo and rattan products. Nguyen Thi Kim Doan, President of An Nhon Tay commune’s farmers’ association, said: “We have encouraged farmers to form cooperatives for agricultural production and livestock breeding. We have also established a fund to give financial support to disadvantaged households.”

HCM city has been modernizing the agricultural sector and helping farmers access technological advances in agricultural production. The city’s farmers’ association is pioneering new credit and accounting software in Vietnam to manage its fund. Association president Nguyen Thi Bach Mai said: “Our fund has helped farmers access technological advances and apply them in their production. Their success will contribute to local economic, cultural, and social development.”