Directive No. 03/2006/CT-TTg On certain measures to continue handling loans for credit investment in building new fishing vessels and service vessels for distant-water fisheries

DIRECTIVE

On certain measures to continue handling loans for credit investment in developing new fishing vessels and service vessels for distant-water fisheries
for constructing new vessels and modifying fishing vessels and offshore fishing support vessels

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After more than two years of implementing Decision No. 89/2003/QD-TTg dated May 8, 2003 of the Prime Minister, there have been positive changes in handling loans for credit investment in developing new fishing vessels and service vessels for distant-water fisheries. Ministries, sectors, and localities have classified investors, appraised values, and auctioned off vessels produced by ineffective investors. To date, nearly 340 vessels have been transferred to new, more effective investors. Adjusting interest rates downward and extending loan terms have facilitated fishermen in continuing their distant-water fishing operations.

However, guidance and implementation in some localities have lacked firmness, and coordination among forces on the ground has not been tight enough, with some leaders even fearing responsibility. As a result, progress in many provinces has been slow compared to requirements, and many investors still rely on state support, delaying repayment of state loans. Additionally, lending organizations have not taken proactive measures or coordinated with local authorities to recover debts.

To address these issues and accelerate the handling of loans for credit investment in developing new fishing vessels and service vessels for distant-water fisheries, the Prime Minister instructs:

1. The Ministry of Fisheries:

- Based on survey results of marine resources and forecasts about fishing grounds and resource availability, promptly inform fishermen through various practical means, including mass media; coordinate with localities to rearrange production and improve economic efficiency in fishing on each territory;

- Develop support measures for training ship captains and engineers, skill training, and introducing new occupations for fishermen; organize post-harvest services to reduce production costs and expand product sales networks to help fishermen operate effectively;

- Closely cooperate with local lending organizations to monitor and require project investors who have borrowed from state credit investment to purchase hull insurance and repay state loans according to regulations;

2. Ministry of Finance:

- Take the lead in coordinating with the Ministry of Fisheries, the State Bank of Vietnam, and lending organizations to resolve difficulties and obstacles in implementing Decision No. 89/2003/QD-TTg dated May 8, 2003 of the Prime Minister;

- Direct insurance companies to strengthen the promotion and sale of insurance products to fishermen; when risks occur, promptly process claims and establish compensation files for vessel owners;

3. The State Bank of Vietnam directs commercial banks to facilitate loans to fishermen engaged in productive activities according to commercial lending regulations;

4. The Ministry of National Defense and the Ministry of Public Security are responsible for directing border guard forces and public security forces in coastal provinces and centrally-administered cities to closely coordinate with local authorities and lending organizations within and outside the locality to monitor and assist in recovering vessels and managing recovered vessels;

5. The Development Support Fund and the Vietnam Development and Investment Bank are responsible:

- Managing and collecting debts on time; coordinating with the investor classification council and asset appraisal committee to sell vessels and collect debts promptly; adjusting repayment periods for old investors (based on the difference in debt due to selling vessels) according to the principle that it should not exceed 12 years from the date of withdrawing the loan;

- Coordinating with related localities to compile suspended interest amounts of projects requiring vessel owner transfers and the debt (including principal and interest) of investors facing unforeseeable risks (vessels sunk or missing due to natural disasters; sunk or seized by foreign ships; vessel owners deceased, missing, or unable to find successors due to illness) and report to the Ministry of Finance for review and submission to the Prime Minister for appropriate handling measures;

6. Provincial People's Committees with projects borrowing state credit investment for developing new fishing vessels and service vessels for distant-water fisheries are responsible:

- Strengthening propaganda and dissemination of preferential policies, loan purposes (according to Decisions No. 393/TTg dated June 9, 1997, No. 159/1998/QD-TTg dated September 3, 1998, and No. 64/2000/QD-TTg dated June 7, 2000), and the responsibility to repay state loans to each fisherman through suitable methods to ensure people understand state policies and voluntarily repay debts;

- Continuing to review and classify investors accurately and appropriately according to Decision No. 89/2003/QD-TTg dated May 8, 2003, and compiling lists of poor investors unable to repay debts to report to the Ministry of Finance for submission to the Prime Minister for handling measures;

- Implementing appropriate measures to accelerate the recovery and auction of vessels from investors misusing funds, delaying repayment, or operating ineffectively (especially those idle, deteriorating, or damaged); enforcing compulsory measures against investors refusing to hand over vessels for auction to recover capital for the state;

- Collecting debts from new investors purchasing vessels through auctions but failing to repay according to the stipulated period to prevent prolonged debt accumulation; firmly recovering debts from capable investors delaying repayment, including enforcement actions; strengthening inspection and supervision, accelerating debt resolution progress, and promptly resolving difficulties and obstacles during implementation.

- Review the membership of the Steering Committee for Investor Classification, Valuation, and Auction of Assets, supplement members (if necessary), and allow these Committees to organize valuation and auction of recovered vessels (in cases where the Auction Center cannot meet the auction progress requirements). The auction process shall be carried out in accordance with Decree No. 05/2005/NĐ-CP dated January 18, 2005 on the Auction of Assets. For vessels that are not successfully auctioned on the first attempt, subsequent auctions must be organized immediately. In cases where damaged vessels cannot be auctioned, the Steering Committee is permitted to conduct valuation and sell the vessels through asset liquidation mechanisms.

- Direct local functional agencies and district-level authorities to closely cooperate with lending organizations in monitoring the production activities of investors and implementing debt collection measures in accordance with Decision No. 89/2003/QĐ-TTg dated May 8, 2003 of the Government Prime Minister and this Directive.

7. The Ministers of Finance, Fisheries, National Defense, Public Security, and the Governor of the State Bank of Vietnam, the Chairpersons of People's Committees of coastal provinces and centrally governed cities, the General Directors of the Development Support Fund, and the General Directors of the Vietnam Investment and Development Bank are responsible for strictly implementing this Directive.

By the 15th day of the first month of each quarter, the Steering Committee for Investor Classification, Valuation, and Auction of Vessels shall report on the progress and results of debt recovery and vessel sales to the Ministry of Finance, the Ministry of Fisheries, and the State Bank of Vietnam for consolidation and reporting to the Government Prime Minister.