Unlocking Capital for Businesses: Access up to 200 Billion VND with 0% Interest Rates

This information was announced at a conference on deploying interest rate support policies for investment projects in key industries, supporting industries, and logistics in the area. The conference, organized by the Ho Chi Minh City Department of Industry and Trade and the Ho Chi Minh City Finance and Investment State-owned Company (HFIC), aimed to quickly implement interest rate support policies for eligible investment projects to reduce the financial burden on investors.

At the conference, Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, said that the loan program for projects in the four key industries, supporting industries, and logistics would last for five years. The borrowers are 100% domestic-owned enterprises implementing projects in Ho Chi Minh City and public units.

Accordingly, HFIC will provide interest-free loans of up to VND 200 billion per project, with a term of seven years, to invest in new machinery, equipment, and factories. The priority sectors for HFIC’s support include high technology, digital transformation; startups, innovation; trade and agricultural production services; healthcare, education and training; vocational education, culture, and sports; economic infrastructure; technical and environmental infrastructure.

The supporting industries that are given priority for interest rate support include automation mechanics; rubber, plastics, and pharmaceuticals; food processing; electronics and information technology; textiles, and footwear, with support levels of 50% or 100%, and a maximum loan amount of up to VND 200 billion per project.

Meanwhile, the logistics sector will receive a 50% interest rate support, meaning that the borrower will only pay interest on half of the loan amount, calculated using the formula: the 12-month average savings rate of four major banks (Vietcombank, Agribank, BIDV, and VietinBank) plus 2-2.2%. The disbursement condition is that the enterprise must have its project appraised by HFIC, have collateral, and ensure debt repayment ability.

Mortgaging Future Assets

While welcoming the positive information, many enterprises in the supporting industries sector shared that the immediate barrier and the biggest obstacle at present is that they do not have collateral and may not be able to access loans.

Answering the concerns of enterprises, the leader of the Ho Chi Minh City Finance and Investment State-owned Company said that HFIC is ready to accept mortgages on future assets. However, this asset will be valued at around 50% of the purchase price, which will determine the loan amount.

“Enterprises with investment project ideas can contact HFIC for project feasibility advice to access a 0% interest rate. Enterprises that do not belong to the subjects of interest rate support for investment projects in the four key industries, supporting industries, and logistics but fall within the industries that HFIC is targeting will be able to borrow long-term capital at an interest rate of 6.7% per annum,” said Mr. Thanh.

HFIC also noted that project investors participating in the program must not have signed contracts with contractors and suppliers for construction, equipment, and technology items. Enterprises can use assets formed from borrowed capital as collateral when signing loan agreements.

According to Ms. Nguyen Thi Kim Ngoc, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, the industry plays a very important role in promoting the city’s socio-economic development. Policies and solutions for industrial development are being adjusted to be more practical and suitable to the reality of enterprises. According to Ms. Ngoc, the city is focusing on developing high-tech industries and producing high-tech products; research, development, and innovation; smart production and regional linkage. Along with this is the structural shift within the industry towards automation, smart production processes, and the use of clean and renewable energy.