Ho Chi Minh City implements interest rate support for loans to projects in priority areas.

The Ho Chi Minh City People's Committee has just issued Decision 42/2024/QD-UBND on the implementation of interest rate support policies for projects financed by the Ho Chi Minh City State Financial Investment Company in priority socio -economic development sectors in the city.

Businesses in the four key industries of Ho Chi Minh City will be eligible for interest rate subsidies on loans.

Accordingly, the maximum loan amount for projects in the city's priority socio-economic development sectors that will receive interest rate subsidies from the budget is VND 200 billion/project (excluding deductible value-added tax). Of this, the investment capital for construction (referencing investment rates issued by the Ministry of Construction or other methods of calculating total investment in accordance with regulations) will be subsidized up to a maximum of 70%, while the investment capital for technology and equipment (calculated in accordance with regulations) will be subsidized up to a maximum of 85%.

Specifically, projects in the fields of education , training, vocational training, healthcare, culture, and sports, invested by public service units of the city, will receive interest rate support up to 100% of the construction investment capital and 100% of the technology and equipment investment capital. In addition, for preschool and general education projects invested by public service units of the city, interest rate support will be provided for loans up to 100% of the total project investment.

According to this decision, the city stipulates that the interest rate subsidy period for projects shall not exceed 7 years, starting from the date the project is approved for support by the Ho Chi Minh City People's Committee and after the first disbursement of loan capital at the Ho Chi Minh City State Financial Investment Company. The city will allocate sufficient and timely funds from the budget for the City Treasury to disburse interest rate subsidies to the project owner.

Regarding this issue, Mr. Nguyen Quang Thanh, Deputy General Director of the Ho Chi Minh City State Financial Investment Company, said that businesses in need of loans will have their projects reviewed by the company to determine which priority sectors of the city they fall under.

Subsequently, depending on the type of project, procedures and applications are submitted to the relevant agencies, either the Department of Planning and Investment (if the project is in the fields of high technology, digital transformation; startups, innovation; trade and agricultural production services; healthcare, education and training, vocational education, culture and sports; economic, technical and environmental infrastructure) or the Department of Industry and Trade (if the project belongs to one of the four key industries including mechanical engineering, electronics - information technology, pharmaceuticals - rubber and plastics, and food processing). and supporting industries) or inter-agency groups established by decision of the Ho Chi Minh City People's Committee. The focal agencies receiving applications are responsible for submitting projects eligible for interest rate subsidies to the city's leadership for approval.

The city also requires relevant units to ensure that interest rate subsidies for loans are implemented publicly, transparently, and for the right beneficiaries and purposes.

In particular, no additional administrative procedures should be created for investors, and conditions should be created to facilitate investors' registration for interest rate support.

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