Only 5 supporting industry projects can receive interest rate support

Ho Chi Minh City: Only 5 supporting industry projects can receive interest rate support

In 2024, Ho Chi Minh City is expected to have only 5 projects in the supporting industry sector receiving interest rate support from the City when borrowing capital.

The Department of Industry and Trade of Ho Chi Minh City has just sent Document No. 2516/TTr-SCT to the City People's Committee on the plan to support enterprises in the supporting industry sector in 2024.

Producing mechanical components to supply FDI enterprises at a company in Thu Duc City, Ho Chi Minh City - Photo: Anh Quan

According to the Proposal, in 2024, the Department of Industry and Trade plans to receive and process registration applications to participate in the City's interest rate support program for 5 projects.

To receive loan interest support, businesses must meet strict conditions specified in Resolution No. 09/2023/NQ-HDND.

First, the enterprise must have products recognized as typical industrial and supporting industrial products of Ho Chi Minh City. The manufacturing industry must be in the priority areas of socio -economic development in the city.

The interest rate support level only applies to projects with a maximum loan of 200 billion VND, in which case the City budget will support a maximum interest rate of 70% for the construction investment part of the project.

As for the capital investment in technology and equipment (calculated in accordance with regulations), the maximum interest rate support is 85%.

The maximum supported interest rate does not exceed the average 12-month savings interest rate in Vietnamese Dong (interest paid at the end of the term) of 4 commercial banks including the Bank for Agriculture and Rural Development; Joint Stock Commercial Bank for Investment and Development; Joint Stock Commercial Bank for Foreign Trade; Joint Stock Commercial Bank for Industry and Trade, plus a management fee of 2%/year.

Along with interest rate support, Ho Chi Minh City supports businesses to promote products at the exhibition on industry and supporting industry in 2024.

In addition, the City supports additional training in digital transformation; training on quality management systems according to ISO 9001:2015 standards; training to improve marketing capacity for businesses...

Ho Chi Minh City has identified the supporting industry as a priority area that needs to be focused on in order to help improve competitiveness, increase the ability to attract foreign direct investment, promote technology transfer, and promote the development of domestic small and medium enterprises.

Currently, many businesses in the supporting industry sector want to be supported with loan mechanisms (interest rate support and using machinery as collateral instead of real estate).

Source: https://baodautu.vn/tphcm-chi-5-du-an-cong-nghiep-ho-tro-co-the-duoc-ho-tro-lai-suat-d214380.html