The Financial System and Agriculture in Vietnam

The 2023 National Agricultural Survey reveals that only 10.2% of agricultural producers in Vietnam accessed credit in the last year. While the rejection rate for credit applications is low, the survey highlights the limited financial inclusion within the agriculture sector. Of those who obtained credit, the majority (79.5%) used it for agricultural purposes such as purchasing inputs or livestock. A mere 1.6% of producers held agricultural insurance, emphasizing the need for greater financial protection in this sector. Savings accounts saw an increase, with 27.1% of producers holding one in 2023. Analysis suggests that approximately 18% of agricultural producers access formal financing, primarily through commercial banks and other financial institutions serving small and micro producers. Commercial banks predominantly serve large agro-exporting companies, while other institutions focus on smaller producers with average loan amounts around S/ 8,000. The data indicates a significant opportunity for expanding financial services to reach more small and micro agricultural producers in Vietnam.