The nine banks are Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Vietnam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Vietnam (BIDV), Vietnam Prosperity Joint stock Commercial Bank (VPBank), Military Commercial Joint Stock Bank (MBBank), Asia Commercial Joint Stock Bank (ACB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Saigon Joint Stock Commercial Bank (SAIGONBANK).
This initiative is one of the necessary measures to effectively mobilize medium- and long-term capital sources for lending and investing in projects under the priority sectors for economic, social and urban infrastructure development in the city.
Attending and delivering a speech at the event, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai emphasized that Ho Chi Minh City set a target of a 10 percent economic growth rate by 2025.
In order to achieve this figure, the city needs an investment capital of about VND620 trillion (US$24.4 billion).
Currently, the city has allocated only VND110 trillion (US$4.3 billion) for public investment and needs to mobilize an additional VND510,000 billion (US$20 billion).
Thus, the cooperation between Ho Chi Minh City Finance and Investment State-owned Company and the banks plays a crucial role in mobilizing social resources, thereby contributing to the city's economic development in the coming years.
The city's leadership is committed to continuing to facilitate, perfect policies and mechanisms, and ensure adequate allocation of public investment capital from the city’s budget to support interest rates.
Simultaneously, HFIC must serve as the focal point to connect with banks for researching, consulting and proposing mechanisms and policies of capital allocation for the city's infrastructure projects under key programs and plans.
At the signing ceremony, Mr. Truong Tuan Anh, General Director of HFIC, reported that HFIC’s charter capital has been increased through retaining after-tax profits and allocating revenue from the equitization of state-owned enterprises under the Ho Chi Minh City People's Committee.
The company has also been assigned to implement an interest rate support program from public investment funds for projects aligned with the city's socio-economic development goals.
HFIC’s leaders have already worked with credit institutions, researched suitable mechanisms and agreed to sign cooperation agreements with project sponsors under the interest rate support program outlined in Resolution 98/2023/QH15.
This includes mechanisms of lending with joint liability, collaboration in mobilizing resources for the city's infrastructure development, investing in local government bonds, introducing the city's bonds to investors and financial institutions, and studying and implementing appropriate financial mechanisms to expand fund-raising opportunities in the market.
These efforts aim to meet the capital demand for infrastructure development projects in the city.
