City launches interest assistance program for industrial firms

The HCMC Department of Industry and Trade on Tuesday implemented an interest assistance program for industrial enterprises especially those from support industry.
 Garment, textile is one of fields receiving loan interest rate assistance from HCMC (Photo: SGGP)
Garment, textile is one of fields receiving loan interest rate assistance from HCMC (Photo: SGGP)

Mr. Hoang Tho Vuong, director of HCMC Support Industry Development Center, said that the city would assist 100 percent loan rate for new or broadening projects with modern equipment and technologies from fields mechanics; chemical, plastics, rubber; food processing; electronics and information technology; garment, textile, leather and footwear.

Projects building or expanding centers which showcase, trade, design, study and develop industrial and support industry products; providing gas, chemicals for hi-tech, support industry plants and laboratories will receive 50 percent interest rate.

Assistant funds for a project will be VND200 billion ($8.8 million) at the highest, double compared to the previous level. It will be no more than 70 percent of basic construction capital and 85 percent of technology and equipment capital.

The interest assistance time will not be longer than seven years. The city People’s Committee will consider and decide extension for cases exceeding the time limit.

The rate of the program will not top the average deposit rate in Vietnamese dong for 12 month terms of four banks Agribank, BIDV, Vietcombank and Vietinbank plus 2 percent management fee a year. This aims to deal with loan interest rate difference among banks.

Investors will cover the difference between the average rate of the four banks and the assistance rate of the city budget.

On the same day, the Department of Industry and Trade and VietinBank signed a cooperation agreement to implement a credit package for industry and support industry businesses in the city.

The program works forward encouraging local businesses to renew equipment and increase production capacity to replace import items, create products’ added value and develop industries and support industry.

The bank’s leader said that the package worth VND10 trillion ($439.36 million) will be supplemented depending on businesses’ demand.