HCMC supporting industries boost global integration thro loans, trade linkages

In recent years, supporting industry enterprises in Ho Chi Minh City have continuously transformed themselves to integrate more deeply into both domestic and global supply chains. Alongside their own internal efforts, the city’s support programs have played a pivotal role.

HCMC loan support program fuels tech upgrades in the mechanical sector

Chairman Nguyen Ngo Long of Nhat Long Mechanical Trading Company said the company has recently invested in three next-generation milling machines integrated with artificial intelligence (AI) to improve product quality and enhance its chances of joining global supply chains. Notably, 85 percent of the investment (equivalent to nearly VND14 billion) was financed through the city’s interest rate support program.

This loan was disbursed at the end of 2025, with a seven-year term and nearly 100 percent interest subsidized, significantly easing our financial burden, Chairman Nguyen Ngo Long said.

Loans from Ho Chi Minh City’s investment stimulus and interest rate support programs have become a crucial source of funding for many supporting industry enterprises pursuing continuous technological upgrades. According to Nguyen Van Tri, General Director of Lap Phuc Company, the mechanical engineering sector, including mold manufacturing, requires substantial investment, and companies risk falling behind if they fail to keep up.

“In two years, we will complete repayment of a loan exceeding VND50 billion obtained under the city’s investment stimulus program in 2020. After that, we plan to continue borrowing under interest rate support schemes to invest in new technologies,” General Director Nguyen Van Tri said.

Ho Chi Minh City’s investment stimulus program, which provides interest rate support, has been in place for more than two decades but was interrupted during 2021–2022. By the end of 2023, the city’s People’s Council passed Resolution 09, clearly defining eligible sectors and beneficiaries. Subsequently, in July 2024, the city’s People’s Committee issued Decision 42 to relaunch the program and support businesses across the city.

Under the program, enterprises can access loans through the Ho Chi Minh City Finance and Investment State-owned Company. Priority sectors include high technology, digital transformation, startups, and supporting industries.

Promoting trade facilitation and business linkages

Cat Van Loi Industrial Production JSC has become a familiar name among supporting industry enterprises for its journey in bringing Vietnamese industrial support products to international markets. In addition to participating in major domestic projects, the company’s mechanical and electrical equipment has been used in projects such as the Malina Metro Line in the Philippines, Techo International Airport in Cambodia, and the Matarbari coal-fired power plant in Bangladesh.

According to the company’s General Director Le Mai Huu Lam, this progress has been driven not only by investment in modern machinery and technology, but also by a strong focus on trade promotion, international product marketing, and improving workforce quality.

Alongside businesses’ own efforts to seek partners, industry associations have played an active role in supporting their members. Huynh Kieu Son, Vice Chairman of the Ho Chi Minh City Mechanical and Electrical Enterprises Association (HAMEE), said that one of the association’s key programs this year is supply–demand matching in industrial zones, aimed at directly connecting Vietnamese firms with foreign direct investment (FDI) enterprises.

“Through these connections, the proportion of mechanical and electrical enterprises participating in domestic and global supply chains has increased significantly each year—by more than 30 percent compared to three years ago,” Son noted.

These matchmaking programs have already yielded positive results. According to Bui Thi Thanh Huyen, a strategic sourcing specialist at Samsung Electronics Vietnam, following a 2025 matchmaking program involving 16 enterprises, Samsung’s Ho Chi Minh City factory is currently working with two of them. This year, the company aims to expand cooperation with more Vietnamese partners.

Meanwhile, Tran Van Hoa, Acting Director of the Center for Industrial Development and Supporting Industries under the Ho Chi Minh City Department of Industry and Trade, said the department will continue organizing supplier-search conferences and coordinating with associations such as the Vietnam Supporting Industries Association, as well as multinational corporations including Samsung, Bosch, Intel, and Toyota. These initiatives will focus on direct supply–demand connections, as well as training and consultancy programs to help supporting industry enterprises improve their capabilities.