VND10 trillion available for HCMC support industries

10:13 | 01/06/2017 Local Industry

(VEN) - Ho Chi Minh City (HCMC), in coordination with the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank,) has deployed a loan package of VND10 trillion to spur local support industry development.

vnd10 trillion available for hcmc support industries

Right decision

Pham Thanh Kien, director of the Ho Chi Minh City Department of Industry and Trade, said support industries play an important role in improving the local content and increasing the value and competitiveness of products.

On March 16, the Ho Chi Minh City People’s Committee issued a decision on the implementation of the city’s investment stimulus package. In particular, Decision 15 specifies support for industrial production and support industry development.

Kien added that the city approved 12 projects to be funded under Decision 50 in 2016 with total loans of VND545.5 billion. However these projects were run by large enterprises, while small and medium-sized enterprises (SMEs) faced many difficulties in capital access. Therefore, Decision 15 focuses on support for SMEs.

Decision 15 shows the determination of Ho Chi Minh City to enhance industrial production and support industry development.

Improving competitiveness

The loan package implemented by Ho Chi Minh City and VietinBank receives interest rate support from the city budget for projects fully meeting the conditions and being approved by the Ho Chi Minh City People’s Committee. In addition, the loan amount must not exceed VND200 billion per project.

VietinBank has spent VND10 trillion to invest in industrial production and support industry development in Ho Chi Minh City at soft interest rates, aiming at encouraging local firms to renovate equipment, enhance production capacity to replace imports and add value to their products.

Bank credit is only one of the factors that help support industry SMEs develop. To further promote the development, management agencies need to create favorable conditions in terms of infrastructure development, human resource training and capacity improvement.

According to the Ho Chi Minh City Department of Industry and Trade, in the current period, the city’s industry and trade sector also attach importance to attracting support industry SMEs in four key industries and two traditional sectors. The city will implement six key solutions, and building support industry database is one of those solutions in order to provide up-to-date information about sources of supply and market demand for businesses.

It is necessary to have comprehensive solutions so that support industry businesses in Vietnam can develop and compete

effectively. Businesses should also have a strategic vision based on the selection of products suitable to market requirements.

Lan Anh