SGGPO
On the morning of November 24, the Department of Planning and Investment of Ho Chi Minh City and the Ho Chi Minh City State Financial Investment Company (HFIC) jointly organized a workshop to disseminate legal regulations on investment and interest rate support policies according to Resolution No. 98/2023 of the National Assembly.
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Mr. Nguyen Quang Thanh presented and answered questions from businesses about Ho Chi Minh City's interest rate support policy. |
At the conference, Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, presented the interest rate support policy for investment projects that HFIC lends to in priority areas for socio-economic development in Ho Chi Minh City. The content attracted many businesses and units to ask questions and discuss.
Clarifying the issues businesses are interested in, Mr. Nguyen Quang Thanh said that the loan amount for a project is unlimited. For example, a hospital has a project with a total investment of 1,200 billion VND, and plans to borrow 900 billion VND. The city will support a loan of 200 billion VND with a 0% interest rate, and the borrower will pay the remaining interest at normal interest rates.
Regarding the loan term, HFIC leaders said that infrastructure projects usually cannot be repaid in 7 years, but may take longer. Therefore, HFIC's loan term is a maximum of 15 years, usually 12 years. In the case of applying the interest rate support policy, if the enterprise borrows for 12 years, the last 5 years will be self-paid interest.
“So, in the last years of preferential treatment, can businesses afford the interest rates?”, answering this question, the leader of HFIC said that in the last years, the outstanding debt gradually decreases, the amount to be paid is not as much as at the beginning. For example, if you borrow 100 billion VND, pay 10 billion VND each year, after 7 years, you will have 30 billion VND left.
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Business representatives ask HFIC leaders about interest rate support policy |
Businesses also raised questions about the depreciation period of machinery and equipment being longer than the interest support period; about withdrawing collateral from banks to secure interest support loans… A representative of a university with 3 campuses in Ho Chi Minh City, preparing to build a campus in Dong Nai, raised the question of whether projects in other provinces can participate in Ho Chi Minh City’s interest support program or not.
Mr. Nguyen Quang Thanh said that Ho Chi Minh City is very interested in education and healthcare, and wants to support all projects with regional connectivity. However, this is currently under consideration, and it is not possible to participate at this time.
Ms. Le Ngoc Thuy Trang, General Director of HFIC, said that when there are specific issues that need guidance, HFIC will provide specific advice and answers based on each profile.
At the conference, Ms. Vu Quynh Le, Deputy Director of the Bidding Management Department - Ministry of Planning and Investment, also presented regulations on investment under the public-private partnership method and its application in practice. She introduced the legal framework on PPP, gave specific examples of PPP investment in an airport, a road project, a hospital... and proposed solutions to promote PPP.
According to her, PPP investment can solve a large demand, when the private sector fully participates in all stages of capital arrangement, construction, and service provision, while Ho Chi Minh City identifies priority projects. It is necessary to promote creativity through thorough project research and come up with many solutions for a problem...
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