GREAT’s Partnership with Lien Viet Post Bank

Posted on 25/02/2020

GREAT has signed a Memorandum of Understanding with Lien Viet Post Bank to develop collateral free lending models based on cash flow modelling and risk profiling of farmers within targeted value chains.

This will help address key market constraints of farmers not being able to access loans without land title certificates and the high transaction costs for banks to “onboard” farmers given the relative loan size.  A scoping study conducted by VietED and Financial Access found that 60% of vegetable and passion fruit producers and 33% of tea producers are seeking finance.  The study also found that female respondents were slightly more likely to access finance from informal sources rather than formal sources.