The financial support totals VND87,638 billion (US$3.8 billion) including VND14,632 billion (nearly US$635 million) for restructure of loans, VND11,386 billion (nearly US$495 million) for interest rate cut and exemption and VND61,620 billion (nearly US$2.7 billion) for low interest loans.
Commercial banks focused on giving loans to the group of small and medium sized enterprises with VND63,099 billion (US$2.7 billion), accounting for 72 percent of total amount of support.
Besides, the department also launched an investment stimulus program according to the city’s decisions and resolutions in order to encourage enterprises amidst the current complicated Covid-19 pandemic.
Up to now, the municipal People’s Committee has approved total investment capital of more than VND2,064 billion (nearly US$90 million) for 28 investment projects of enterprises in the supporting industry. Of which, more than VND1,157 billion (US$50 million) was from from the city’s budget with an average investment capital of more than VND73 billion (nearly US$3.2 million) a project and the average amount of loan with preferential interest rate topping VND41 billion (nearly US$1.8 million) a project.
The support level for supporting industry-based projects is 100 percent of interest rate for a maximum period of seven years. With 10-percent average loan interest and a maximum loan period of seven years, the city’s budget will pump more than VND405 billion (US$17.6 million) to support loan interest, thereby attracting more than VND2,064 billion (US$89 million) to invest and develop production activities of enterprises. Due to the impact of the Covid-19 pandemic, around 161 fairs and exhibitions were cancelled last year.
Via trade fairs, enterprises will have a chance to introduce their best-seller and potential products as well as strengthen exchanging experience, approach new science and technology models, promote domestic production development, raise product quality and competition of Vietnamese products in the local market.
