On September 22, Mr. Nguyen Quang Thanh, Deputy General Director of Ho Chi Minh City Financial Investment State-owned Company (HFIC), announced that, following the resolution concerning interest rate support for investment projects funded by HFIC in key areas of economic and social development in the city, which was endorsed by the HCMC People's Council on September 19, HFIC will be launching various initiatives to provide capital support to businesses involved in production.
Accordingly, companies engaged in high technology, digital transformation, startups, trade, agriculture, healthcare, education, vocational training, culture, sports, economic and technical infrastructure, and environmental sectors, as well as businesses in the four core industrial sectors and those in the supporting industry sector, will be eligible for the following interest rate support.
The supported interest rate will be equal to the average VND savings deposit interest rate for a 12-month term with interest paid at the end of the period, offered by the HCMC branches of four commercial banks, namely Agribank, BIDV, Vietcombank, and Vietinbank.
This interest rate will be increased by an additional annual management fee of 2 percent. In situations where there is a disparity between HFIC's lending interest rate and the supported interest rate, the maximum supported interest rate will be capped at the lower rate.
Investors are required to repay the principal following the installment schedule outlined in the credit agreement. The city budget does not offer interest rate support for projects that involve a one-time principal repayment at the end of the term.
