At the conference on implementing interest rate support policies for investment projects in four key industries, supporting industries and logistics, which was recently held, Ms. Nguyen Thi Kim Ngoc - Deputy Director of the Department of Industry and Trade of Ho Chi Minh City - said that Ho Chi Minh City is currently focusing on developing high-tech industries, manufacturing high-tech products; research, development and innovation; smart manufacturing; regional connectivity. At the same time, transforming the internal structure of the industry towards automation, smart production processes and using clean energy and renewable energy.
According to information from the Ho Chi Minh City People's Committee, developing supporting industries is one of the important solutions to improve the quality of the economy, develop sustainably and avoid the "middle-income trap"; help increase the ability to attract foreign direct investment, promote technology reception and transfer, and promote the development of domestic small and medium enterprises. From there, create strong spillover effects, helping domestic enterprises to participate deeply in the supply chain of FDI enterprises and the global value chain of multinational corporations.
However, the supporting industry in Vietnam and Ho Chi Minh City in particular still shows shortcomings and limitations such as domestic supporting industry products are mostly simple, have medium and low technology content, and have small value in the product value structure... The rate of import deficit of raw materials, components, and spare parts is still very large, the localization rate in industrial sectors is still low...
One of those obstacles is the capital issue. The Ministry of Industry and Trade has repeatedly proposed amendments to Decree No. 111/2015/ND-CP on the development of supporting industries with many new proposed incentive policies. In particular, the Ministry of Industry and Trade proposed that the central budget support interest rate compensation through the commercial banking system for medium- and long-term loans in Vietnamese Dong of enterprises for project investment. The proposed interest rate difference compensation level is 3%/year. The time for state credit support is equal to the loan term but not exceeding 10 years from the date of signing the loan contract. This policy applies to loans with loan agreements signed and disbursed until the end of 2030. However, up to now, the proposal for interest rate compensation has not been approved.
To solve the problem of capital shortage of enterprises, from mid-July 2024, the People's Committee of Ho Chi Minh City issued Decision 42/2024/QD-UBND on implementing the interest rate support policy for projects lent by the Ho Chi Minh City State Financial Investment Company (HFIC) in priority areas of socio-economic development in the city.
The new policy focuses on the mechanical automation industry; rubber, plastics and pharmaceuticals; food processing; electricity and information technology; textiles and footwear industries, which will be supported with 100% of loan interest rates. The total loan amount supported with interest rates shall not exceed VND200 billion/project and the support period shall not exceed 7 years.
The disbursement condition is that the enterprise must have a feasible project appraised by HFIC, have collateral, and ensure debt repayment ability... However, according to many enterprises, the current barrier is that they no longer have collateral, so they may not be able to access loans.
To address this issue, Mr. Nguyen Quang Thanh - Deputy General Director of HFIC - said that the company is willing to accept mortgages of future assets. These assets will be valued at about 50% of the value that the business has purchased, from which the loan amount will be decided.
In addition to medium and long-term loans supported by HFIC, in the coming time, HFIC will continue to cooperate with Vietcombank and VietinBank so that banks can expand working capital loans for projects, plans, and businesses that are eligible for this loan interest rate support policy.
