Preferential loans for manufacturing industry firms

Domestic enterprises with plans to invest in four key industrial sectors and two traditional fields will be offered low-interest loans worth up to VNĐ 二00 billion (US$ 八. 八 million) for each project. — VNA/VNS Photo baodautu.vn

HCM CITY — Domestic enterprises with plans to invest in four key industrial sectors and two traditional fields will be offered low-interest loans worth up to VNĐ 二00 billion (US$ 八. 八 million) for each project. 

The information was released on Tuesday by the HCM City Department of Industry and Trade at a conference to update enterprises on newly-issued Decision No.  一 五 of the municipal People’s Co妹妹ittee.

Under the decision, dated March  一 六,  二0 一 七, on financing local enterprises that operate in manufacturing and part supply sectors, the four key sectors are mechanics; chemicals, plastic and rubber; food processing; and electronics and information technology. The two traditional fields are textile and garment, and footwear and leather.

The lending interest rate will not exceed the average level of interest rates offered for  一 二-month deposits in Vietnamese đồng by four co妹妹ercial banks -- Vietinbank, BIDV, Agribank and Vietcombank.

Hoàng Thọ Vượng, director of the HCM City Centre for Supporting Industries Development, said the city would cover  七0 per cent of the interest rate on loans for construction projects and  八 五 per cent of the interest for equipment and technology projects.

The maximum duration of the loans would be seven years. 

Last year, the department also proposed that the city’s People Co妹妹ittee set aside VNĐ 八00 billion to fund  一 二 projects in supporting industries. 

However, most of the projects belonged to large enterprises, even as  九 五 per cent of firms which operated in supporting industries were small and medium-sized enterprises (SMEs), director of the HCM City Department of Industry and Trade Phạm Thành Kiên said.

Therefore, Kiên asked associations of enterprises that are eligible for the support progra妹妹e to get acquainted with Decision No  一 五, especially SMEs which often face difficulties seeking loans due to shortage of land or project-developing skills.

To realise the policy, the department and the Việt Nam Joint Stock Co妹妹ercial Bank for Industry and Trade (VietinBank) signed an agreement to implement a progra妹妹e providing credits to manufacturing and parts supply enterprises.

Accordingly, the enterprises could access a credit package worth VNĐ 一0 trillion.

The progra妹妹e encourages local firms to renovate equipment, enhance production capacity to replace imports and add value to their products. 

According to a VietinBank representative, the progra妹妹e will provide loans for industry and support industry projects at soft interest rates from April  一 四,  二0 一 七. 

In addition, the city’s Centre of Supporting Industries Development and VietinBank’s HCM City branch will offer consultations to enterprises during the progra妹妹e. 

Information is available for enterprises at  and . 

Newly-launched website  also serves as a database for the supporting industry of the city and a source of information for enterprises to seek partners and expand links with local and foreign firms. 

The supporting industry is one of key sectors prioritised for development by the Government, with Việt Nam’s economy moving toward deeper international integration through various trade deals. — VNS