Prime Minister Pham Minh Chinh approved two programs on rural development in August, including the Digital Transformation Program on building new rural areas towards a “smart new countryside” in the 2021-2025 period, and a program to strengthen environmental protection, food safety, and clean water supply in new rural area construction in the 2021-2025 period.

The development of industrial clusters of craft villages is expected to be the nucleus of innovation in rural areas. With over 2,000 that are 100 years old or older, Vietnamese craft villages have made a significant contribution to exports. However, their development also reveals many shortcomings. A number of solutions were recommended at the “Strengthening linkages and developing industrial clusters in craft villages in Vietnam” seminar.

In moving towards the goal of “leaving no one behind” and as part of efforts in financial inclusion, banks are now looking at a range of solutions that include promoting the development of domestic credit cards in rural areas. Agribank has been implementing its “Agribank Digital” program in many localities, which allows customers to conduct transactions without going to a counter.

Prime Minister Pham Minh Chinh attended a dialogue with farmers in late May. Given the many difficulties and problems now facing farmers, he asked that ministries and agencies focus on perfecting institutions, policies, and administrative reform in agriculture and rural areas, improve the efficiency of land management and use, create favorable conditions for land accumulation, increase State investment in agriculture and rural areas, and provide preferential credit.

There is a huge disparity in bank network coverage between urban and rural areas and between major cities and remote provinces. While there are many commercial banks in cities such as Hanoi and Ho Chi Minh City, the number is modest in rural areas.