Ho Chi Minh City offers interest rate support to businesses

Ho Chi Minh City is providing financial assistance to businesses within specific industries, as outlined in Resolutions No.09/2023/NQ-HDND and No.523/NQ-HDND of the city's People's Council. The city's Finance and Investment Company offers interest rate support, capped at the average 12-month VND deposit rate plus a 2% management fee, for loans of up to VND200 billion ($7.69 million) per project.

This support can cover up to 85% of investment in technology and equipment and 70% of investment in construction, with a maximum period of seven years from the first disbursement. Businesses involved in industrial automation, electronics, and IT, as well as green transition projects, are eligible for up to 100% interest rate subsidies for new ventures, factory renovations, and the procurement of modern equipment.

Green transition measures are encouraged for mechanical engineering and electrical businesses, with full subsidies available for specific investments in upgrading machinery, renewable energy equipment, wastewater treatment, and digital transformation projects. To apply for these subsidies, businesses must be wholly owned by domestic investors and must not receive subsidies from other budget-funded schemes.

The approval process involves seven steps, starting with preliminary discussions and ending with formal disbursement by the city's People's Committee.