According to the Ho Chi Minh City State Financial Investment Company (HFIC)'s announcement on January 21, these projects fall within priority sectors for socio-economic development and are being implemented under an interest-rate subsidy mechanism designed to help enterprises access medium- and long-term financing.
Of the projects reviewed, HFIC has approved loans for 24 projects, with total committed lending of VND1.829 trillion (US$69.6 million). The Ho Chi Minh City People’s Committee has issued decisions granting interest-rate support to seven projects, covering loans worth VND497.2 billion (US$18.9 million). These initiatives are concentrated in sectors with strong spillover effects, including healthcare, education, environmental protection, culture and sports, high technology, and digital transformation, contributing to improvements in social infrastructure, public services, and businesses’ innovation capacity.
Alongside the projects that have already been approved and implemented, the city is continuing to review and finalize documentation for an additional 34 projects under consideration for financing, with a projected total investment of VND12.619 trillion (US$480 million) and estimated loan demand of around VND8.561 trillion (US$326 million). Once implemented, this funding is expected to broaden investment opportunities for businesses, particularly as demand rises for technological innovation, infrastructure upgrades, and compliance with increasingly stringent sustainability standards.
According to Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, Ho Chi Minh City’s investment stimulus program is designed to help enterprises access medium- and long-term capital, thereby mobilizing additional resources for sectors prioritized in the city’s socio-economic development strategy. The use of public funds to subsidize interest rates helps lower financing costs for businesses while encouraging private-sector participation in areas where private investment can be deployed effectively.
Experience shows that the investment stimulus model has delivered tangible results in previous phases. Between 2015 and 2020, Ho Chi Minh City’s stimulus program supported 313 projects with a combined investment value of VND26.686 trillion (US$1.015 billion). To activate these capital flows, the city allocated approximately VND2.854 trillion (US$108.6 million) from its budget, creating a significant leverage effect that drew social resources into infrastructure development and public services.
Through HFIC, the city extended loans to 89 projects during this period, with total disbursements of nearly VND4.88 trillion (US$185.5 million), primarily in the areas of education, healthcare, and water-supply infrastructure. Stimulus funding contributed to the modernization of school and hospital facilities, investment in high-tech medical equipment, and the expansion of clean water supply systems, helping meet the growing needs of residents at a time when public investment resources remained constrained.
At present, the interest-rate subsidy program continues to be implemented with a scale and scope aligned with the city’s new development requirements. Under the scheme, each project may borrow up to VND200 billion (US$7.6 million), with interest-rate support provided for a period of no more than seven years. The subsidy level covers either 50 percent or 100 percent of interest costs, depending on the sector in which the investment is made.
The program is widely viewed as an essential policy tool enabling the city to stand alongside businesses, stimulate investment, accelerate technological innovation, and strengthen competitiveness in the period ahead.
