HCMC provides financial assistance for industrial businesses

Ho Chi Minh City has issued Decision 15 on financial assistance policies for industrial enterprises to renew production technology, said deputy director of Industry and Trade Department Nguyen Phuong Dong yesterday.
The underground cable production line of Tan Phu Trung Plant, HCMC
The underground cable production line of Tan Phu Trung Plant, HCMC

Each enterprise would be able to get loan of up to VND200 billion (US$8.81 million) a project, he said.

The agency has worked with foreign invested companies to intensify supply and demand connectivity for domestic support industry firms. So far, three out of 11 projects have been approved to receive the total assistance funds of VND200 billion. Seven projects are now submitted to HCMC People’s Committee and two projects are being adjusted.

Aside from that, the agency has built a database of 600 industrial and support industry companies. In 2017, there were over 200 support industry firms attending global supply chains. Of these, 29 became level 1 suppliers.

Director of Industry and Trade Department Pham Thanh Kien said that in 2018 the department would implement synchronous solutions to improve businesses’ production capacity, organize a vote for outstanding industrial and support industry products, build information database for the support industry to bring firms together.

The agency will also closely work with business associations to survey and grasp businesses’ demand, propose HCMC People’s Committee to assign it to establish satellite production zones supplying support industry products for companies in industrial parks, export processing zones and hi-tech parks.

The department will get businesses’ opinions about infrastructure investment to improve land use efficiency and open a showroom of support industry products.