The governor of the State Bank of Vietnam (SBV) Nguyen Van Binh said that the SBV and Vietnamese commercial banks will disburse a total VND10 trillion (USD476 million) in support of local fishermen.

The money will be disbursed in low-interest loans with a rate of 3% per year, said Governor Binh.

Governor of the State Bank of Vietnam Nguyen Van Binh

Under the draft policies, off-shore fishermen will receive preferential loans to build new fishing boats or repair or upgrade existing ones in order to increase fishing capacity and protect national sovereignty.

Fishermen will be supported with 70% of insurance fees for new fishing vessels, guaranteed by the government. 

According to the governor, the SBV is currently considering offering no-interest loans to fishermen who qualify, with terms between 10 and 15 yeas.

The government has instructed the Ministry of Agriculture and Rural Development to create a decree for the disbursement of the loan package.

“The SBV is very willing to disburse these funds as long as the government has set up a legal framework to do so," the state bank announced.

Proposed draft policies also deal with raises in compensations for missing or dead fishermen by 25%, as well as providing 15kg of rice for each of their dependents for three months. Vessels that volunteer to help in rescue missions will be reimbursed the cost of fuel.

Vietnam has about 117,000 fishing vessels, with just under 4,000 groups created, and 145,000 members who help to protect Vietnam's sovereignty.