Center for Economic Development Studies
Today I met Mr Nha at the Center for Economic Development studies at the Vietnam National University.
The interesting thing about this center is that they work in development economics by providing microfinance to the agricultural sector. The loans are made in order to upgrade machinary and to move the technology of the agricultural sector forward to be congruent with modern methods.
The loans are quite large amounts, up to US$10,000. Loans of this size are needed as sometimes the machinary required is bought from overseas and is very expensive. Recipients of the loans are required to make repayments in kind.
Therefore a farmer who receives this type of loan and is able to buy new equipment and improved fertiliser might donate part of his yield for distribution to the community. This frees up capital normally spent on consumption to be used for other investment purposes.
The interesting thing about this center is that they work in development economics by providing microfinance to the agricultural sector. The loans are made in order to upgrade machinary and to move the technology of the agricultural sector forward to be congruent with modern methods.
The loans are quite large amounts, up to US$10,000. Loans of this size are needed as sometimes the machinary required is bought from overseas and is very expensive. Recipients of the loans are required to make repayments in kind.
Therefore a farmer who receives this type of loan and is able to buy new equipment and improved fertiliser might donate part of his yield for distribution to the community. This frees up capital normally spent on consumption to be used for other investment purposes.
posted by Megan at 5:07 pm
0 Comments:
Post a Comment
<< Home