Support loan interest rates to stimulate enterprise demand

DNHN - The National Assembly's Resolution 98/2023/QH15 on piloting several specific mechanisms and policies for the development of Ho Chi Minh City went into effect on August 1. The city is calculating and proposing a loan programme for businesses.

Mr Nguyen Van Tri, general director of Lap Phuc Co., Ltd., stated that the current business climate is extremely challenging. In addition to capital turnover, ensuring cash flow requires the payment of numerous other expenses, such as wages, bonuses for employees, equipment, and raw materials. Therefore, the company is looking forward to the economic stimulus package, which will assist businesses in maintaining a stable cash flow and overcoming obstacles.

In the meantime, Mr Nguyen Viet Toan, chairman of the Tan Phu District Business Association, stated that the upcoming stimulus package must establish an accessible mechanism for businesses.

Ms Pham Thi Ngoc Ha, Director of San Ha Co., Ltd (SanhaFood), a company that expanded and developed its business using Ho Chi Minh City's stimulus capital in the past, stated that the previous stimulus package brought many benefits to businesses, allowing SanhaFood to obtain good capital to deploy its business, thereby achieving many accomplishments over the years. "The stimulus package has been reactivated, providing a breath of fresh air to many businesses. Amid challenging times like the present, it encourages businesses to pursue economic growth, brightening the economic outlook. Ms Ha added, "We also hope that more businesses will dare to participate in the programme."

Currently, Ho Chi Minh City's Department of Planning and Investment. Ho Chi Minh City is coordinating with the Ho Chi Minh City State Financial Investment Company. Ho Chi Minh City People's Committee (HFIC) advises the People's Committee to submit to the City Council a draught Resolution enacting regulations on interest rate support policies for investment projects lent by HFIC in priority economic development - society fields in the city. It is well known that since more than a decade ago, TP. Ho Chi Minh City has implemented numerous investment stimulus programmes to encourage the restructuring of urban agriculture, stimulate investment demand in the field of supporting industries, etc., which are highly regarded by the business community and produce tangible results.

According to statistics, the programme has produced positive results: for every 1 dong of the investment budget for restructuring urban agriculture, 21 dong of investment capital is attracted from socialisation, and for every 1 dong of the investment stimulus budget, 12 dong is mobilised from other resources. However, the programme has been suspended for the past two years, causing many businesses to "collapse."

Mr Nguyen Quang Thanh, Deputy General Director of HFIC, stated that the stimulus programme will be implemented with increased support levels and a larger group of beneficiaries this time around. The new investment stimulus programme applies to enterprises with 100 per cent domestic capital in a variety of fields, including high technology and digital transformation and innovation; agricultural production - processing agricultural products; food processing; economic, technical, and environmental infrastructure (construction of houses, wastewater treatment, conversion of means of transport using fossil fuels to green fuels, solar energy); pharmaceutical chemicals, rubber - plastic; tetrahydrocannabinol (THC); and tetracycline (Tc).

It is anticipated that the programme will also increase the loan limit to 200 billion dong from 100 billion dong in previous periods; the interest rate support can range from 50% to 100% depending on the specific target group; and the support period will last between 5 and 7 years. 15 calendar days are required to complete the approval process for the support policy application. Compared to the previous regulations, the records and procedures are largely eliminated. The composition of the dossier is specified and modelled, which facilitates dossier creation.

"Businesses in the groups of high technology, innovation, digital transformation, education, health, sports and culture, environment, logistics, and high-rise factory construction projects will be supported for up to 100 per cent of their loan interest. It is anticipated that the programme will be submitted to the City Council. Ho Chi Minh City will be approved in September 2023, according to Mr Thanh.

Nghe Nhan (Synthesis)