On May 27, the Ho Chi Minh City Finance and Investment State-owned Company (HFIC) and the Vietnam Bank for Agriculture and Rural Development (Agribank) signed a strategic cooperation agreement to implement a joint lending program.
Under this agreement, HFIC and Agribank will jointly carry out co-lending activities under the current credit mechanism.
The two parties will closely coordinate to develop and finalize the credit program, agree on the appraisal method, and determine the participation ratio for syndicated credit in priority development projects in HCMC.
Speaking at the ceremony, Mr. Nguyen Ngoc Hoa, Chairman of the HFIC Board of Members, stated that HFIC has been tasked by the HCMC People's Committee with mobilizing capital resources to meet the investment needs of key projects under the city's development program, including investments in urban infrastructure, the environment, social housing, four key industrial sectors, logistics services, culture, sports, and healthcare.
HFIC has also been assigned to reinstate lending activities under the Investment Stimulus Program, which had been interrupted for two years. Under this program, each project can receive support to increase the loan amount from VND100 billion to VND200 billion, with a loan term of seven years.
This highlights that while the demand for investment capital for HCMC's development program is relatively high, HFIC's capital resources are limited.
According to Hoa, HFIC's total capital is currently estimated to be over VND8.5 trillion. Additionally, HFIC is restricted from lending to entities outside HCMC's administrative boundaries despite the high demand for investment and development from local businesses.
Mr. Hoang Minh Ngoc, Deputy General Director of Agribank, shared that Agribank's total assets are currently around VND2 quadrillion. The partnership with HFIC will help meet the city's urban infrastructure development needs and alleviate the pressure on HFIC's capital resources.
This partnership will also resolve issues related to providing capital support for HCMC-based businesses that need to expand their production, business, and investments in other localities.
Immediately after the signing, both parties came to an agreement and began implementing capital support activities for businesses in need.
