16:31 | 24/09/2015 Finance - Banking
(VEN) - Ho Chi Minh City People’s Committee will run a subsidized loan program covering from 50-70 percent or 100 percent of the costs over five to seven years for businesses which promote investments in upgrading plants and purchasing machinery and equipment in order to create the most favorable conditions to develop support industries.
Ho Chi Minh City is piloting a multistory workshop model for lease in high-tech parks
According to the 2015-2020 plan, Ho Chi Minh City will provide 500ha of land in industrial zones for investment projects in support industries. In addition, the city will pilot the construction of multistory workshops over 100,000cu.m for small and medium-sized enterprises in support industries. The city strives to promote the development of support industries in the next five years to improve the industrial production index.
The plan will focus on four key industries, including engineering, electronics and information technology, plastics and rubber and food and foodstuff processing in addition to garments and textiles, leather and footwear.
To create favorable conditions for support industry businesses, Ho Chi Minh City People’s Committee issued Decision 1026/QD-UBND piloting a multistory workshop model for lease in high-tech parks, Linh Trung and Tan Thuan export processing zones and Hiep Phuoc and Dong Nam industrial parks in the 2015-2018 period. Each workshop will have three to eight floors on areas of 100-1,000cu.m.
According to Ho Chi Minh City Export Processing and Industrial Zones Authority Deputy Head Nguyen Bach Hoang Phung, the authority has actively supported investors in the implementation of a multistory workshop model.
The Hiep Phuoc Industrial Park is preparing many kinds of workshops with several floors for businesses and has actively contacted relevant departments and management agencies in order to overcome difficulties for businesses in the beginning period. The industrial park is expanding its area by 600ha, including 200ha for support industry businesses to be ready to welcome foreign investors.
The Ho Chi Minh City Support Industry Development Center will help promote the new subsidized loans.
Japan External Trade Organization (JETRO) in Ho Chi Minh City Managing Director Hirotaka Yasuzumi said that in addition to the efforts made by businesses, the city government needed to devise support policies and opportunities for Vietnamese businesses to participate in the supply chain remained huge.
The goal of Ho Chi Minh City is to select outstanding industrial products in the next few years to provide for the domestic market and serve exports.