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At the 11th session of the 10th-tenure HCMC People's Council held on September 19, the municipal People’s Council passed a resolution on providing interest-rate support to projects that receive loans from the HCMC Finance and Investment State Owned Company (HFIC) in the priority fields. This is one of the contents of Resolution 98/2023/QH15 on the pilot implementation of specific mechanisms and policies for the development of HCMC that is concretized.
One VND spent to attract VND6.8 - VND9.54
According to the HCMC People’s Committee, the city has implemented interest rate support policies for businesses and public non-business units with priority projects from 2015 until date. The municipal People’s Committee approved 296 projects with a total investment of VND25,300 billion (US$1.042 billion), including a loan amount of more than VND11,900 billion. In 2015-2020, the city spent over VND2,300 billion from its budget to give support for loan interest to projects. On average, one Vietnamese dong (VND) of the State budget is spent to attract around investment capital of VND9.54 from the society.
According to Resolution 16/2018/NQ-HDND on promoting investment in the supporting industry sector of HCMC for the 2018-2020 period, the People’s Committee of the city gave a nod to 17 projects of 16 enterprises with a total capital of nearly VND1,400 billion and spent more than VND203 billion to provide support for loan interest to projects. On average, one Vietnamese dong (VND) of the State budget is spent to attract investment capital of VND6.8 from the society.
General Director of HFIC Le Ngoc Thuy Trang said that the company is building a capital resource plan to ensure financing capacity for priority projects in the city. The HCMC People’s Committee established an interdisciplinary team and assigned an agency to receive documents on loan interest support to submit to the Chairman of the municipal People’s Committee.
Prioritizing innovation and regional connectivity
HCMC People’s council delegates suggested the city should not limit the scale of projects and provision of interest-rate support. In fact, there are many businesses located in HCMC that operate projects in other provinces and actively contribute to the city’s development.
The State budget will fully allocate funds for interest rate support for construction and expansion projects in the fields of high tech, digital transformation, building incubators for rent; and creative and innovative startups that graduated from incubators, Ms. Le Ngoc Thuy Trang said.
Resolution on providing interest-rate support to projects that receive loans from the HCMC Finance and Investment State Owned Company (HFIC) in the priority fields will take effect from October 1, 2023.
The maximum loan amount will be VND200 billion per project, excluding deductible value-added tax. Of this, the maximum support for project construction will account for 70 percent of the total investment capital, and 85 percent for investment of technology and equipment.
Projects in the fields of healthcare, culture and sports, education and training, and vocational education will enjoy 100 percent interest-rate support.
